10 Dec Benefits of a Refundable Entrance Fee
More than 10 years ago, when Park Springs was in the conceptual phase, prospective Members were asked how they would prefer to pay for all the community provides. Choices included: a fee simple purchase, the ability to rent, and the payment of an Entrance Fee – and a majority chose the Entrance Fee model.
Here are some of the benefits of Park Springs’ Refundable Entrance Fee:
- Proven Financial Model: Entrance fees provide a stable financial model for the operation of a CCRC.
- Estate Preservation: The home is often the Member’s greatest single asset. The Entrance Fee model preserves that asses by returning to the Member’s estate a significant portion (depending on the refundable option chosen).
- Reduced Monthly Fees: A portion of Entrance Fees pays down the cost to construct the common areas such as the clubhouse, fitness center and health center, thereby reducing the ongoing monthly expenses to provide these amenities.
- A Sense of Home Ownership: Entrance Fees provide residents the ‘feeling’ of home ownership without its hassle and uncertainty. Members know that when they no longer have a need for their residence, the ongoing costs associated with it cease. Unlike fee simple ownership, Members do not have to concern themselves with ongoing costs to maintain their residence after they are gone.
- A Stable Resident Profile: Members who choose a retirement community offering an Entrance Fee have prepared for their retirement and as such provide a highly stable resident population.
To learn more about Park Springs and its Entrance Fee model, please call any one of our Senior Residency Counselors at 678-684-3300.