Money you put into a village can’t earn interest elsewhere. It isn’t a bill, but it is a real cost, and it matters when you compare villages.
Step 1 of 5
Money you pay
This line shows what living at Runaway Bay would cost you if you left after each year: everything you pay in, minus what you get back. After 8 years it’s about $237,000.
Step 2 of 5
What your money could have earned
The shaded band is what the $445,000 you paid to move in might have earned elsewhere, at 5% a year. After 8 years that’s about $225,000.
Step 3 of 5
The full cost
Put the two together and you get the full cost of choosing the village: about $462,000 over 8 years.
Step 4 of 5
Comparing fairly
Esperance Hope Island costs more to move into. Over 8 years you’d pay less there, but much more of your money is tied up, so its full cost is higher.
Step 5 of 5
Both figures matter
Money you pay is what leaves your pocket. The full cost helps compare villages with very different prices. We always show both, clearly labelled, and never mix them.
Runaway Bay
Esperance Hope Island
Example: Runaway Bay Retirement Community and Esperance Hope Island, one person, 2 bedrooms, lowest price.
Why 5% a year?
It’s a reasonable long-term return on savings, before tax. Nobody knows what the future holds, so you can change it on any village page (under “Change our assumptions”) or with “What if” on the compare page.
Is it money I pay?
No. It’s money you miss out on, sometimes called the forgone return or opportunity cost. That’s why we always label it, show it as a shaded band rather than a solid line, and keep it out of the “each month” figure unless you ask for it.