We are often asked the question “Why do I pay rent when we own our own home?”, so we thought it was a good idea to break down what it includes and how this compares to the costs of regular suburban house.
Our weekly site fee is currently $187 for couples and $171.50 for singles. Importantly, the government class the weekly site fee as rent, meaning you are eligible for a rent rebate of up to $70.40 per week if you are on a pension. Making the weekly between $5,257 – $9724 per annum depending your situation. The weekly fee covers council rates, land rates, water rates, front landscaping maintenance and use of the community facilities like gym and pool (in stage two).
There are a couple of other notable costs savings in a lifestyle village. Because the land is rented (leased), there is no stamp duty. Therefore, if you were to purchase a suburban home for $390,000, the stamp duty would be $12,540.00, this isn’t applicable to a lifestyle village, a significant saving.
We are also including 3KW solar panel systems on all of our homes. There is a lot of conjecture about the future of power prices in WA. Given that our costs are lower than over east, it is likely that the prices will increase in the near future. The included solar systems should save you approximately $35.00 per week or $1820.00 per year. Another significant saving.
The below table breaks down what the yearly costs would be for a 4×2 home in Margaret River and how that compares to living at Margaret River Lifestyle Village.
|Suburban Costs||Lifestyle Village Costs|
|Council Rates||$2,200||Weekly Fee (couple)||$187.00|
|Water Rates||$1,277||Less Rent Rebate||-$66|
|Garden Maintenance||$780||Home Maintenance||$10|
|Home Maintenance||$1,500||Council Rates||$0|
|Front Garden Maintenance||$0|
|Solar Power Savings||-$35|
|Total per Year||$5,757||Total per Year||$4,992|
|Per Week||$110||Per Week||$96|
Note: We recommend that you review your current costs or speak to a financial advisor to work out what your weekly costs are/will be, you may be surprised at how they add up.
Figures are current as of 1 July 2021