Cost Example

A Suite Dominium

350K House

In the case of a home that costs 350,000, we’ll assume it has 6 bedrooms, 6 bathrooms, and common areas.

Each Bedroom:   350000/6 = $60,000

Security Deposit: $100,000

Buy Out* Deposit: $350,000/5 = $70,000

Closing Cost: 4% * $60,000 = $2,400

Service Fee: $10,000

Repairs: $10,000

Appliances and Household Electronics: $10,000

Furnishings for Bedroom, Kitchen, Common Areas: $10,000

Total Move in Cost: $272,400

Monthly HOA Fee, Home and Service Costs: $3000/mo

Deposit into Escrow to Secure your Place

Full Refund minus any actual cost incurred by your request if Cancellation occurs before signing Purchase Agreement

What you get back when you leave: 

Cost of bedroom

Security Deposit

Buy Out

Appreciation

Interest on Deposit

Example of Total Cost over 20 year stay:

272,000 Move in

$3000/mo x 12 mo/year x 20 years: $720,000

Refund: $100,000

Refund: $70,000

Refund Bedroom: $60,000

Payout Appreciation on Bedroom at 20 years * 3.5% per annum appreciation: $60,000

 Interest on Buy Out Deposit of $70,000 @ 3.5% for 20 years: $70,000

Interest on Security Deposit of $100,000 @ 6% for 20 years: $200,000

minus closing cost at 4% on $120,000: $4800

 Total Refund at 20 years: $436,800

You put in $992,000

Pay Out at 20 years: $436,800

Total 20 year cost: $555,200  

or $2313 per month

As compared to average cost of independent living: $2000-$5000

These numbers are estimates and could vary wildly. 

 

a sUITE dOMINIUM

750K House

In the case of a home that costs 750,000, we’ll assume it has 7 bedrooms, 7 bathrooms, and common areas.

Each Bedroom:   750000/7 = $107,000

Security Deposit: $150,000

Buy Out* Deposit: $750,000/6 = $125,000

Closing Cost: 4% * $60,000 = $4,280

Service Fee: $10,000

Repairs: $10,000

Appliances and Household Electronics: $10,000

Furnishings for Bedroom, Kitchen, Common Areas: $10,000

Total Move in Cost: $426,280

Monthly HOA Fee, Home and Service Costs: $3000/mo

Deposit into Escrow to Secure your Place

Full Refund minus any actual cost incurred by your request if Cancellation occurs before signing Purchase Agreement

What you get back when you leave: 

Cost of bedroom

Security Deposit

Buy Out

Appreciation

Interest on Deposit

Example of Total Cost over 20 year stay:

426,280 Move in

$3000/mo x 12 mo/year x 20 years: $720,000

Refund Security Deposit: $150,000

Refund Buy Out: $125,000

Refund Bedroom: $107,000

Payout Appreciation on Bedroom at 20 years * 3.5% per annum appreciation: $107,000

 Interest on  Buy Out Deposit of $125,000 @ 3.5% for 20 years: $125,000

Interest on Security Deposit of $150,000 @ 6% for 20 years: $300,000

minus closing cost at 4% on $214,000: $8,560

 Total Refund at 20 years: $905,440

You put in $1,146,280

Pay Out at 20 years: $905,440

Total 20 year cost: $240,840  

or $1003 per month

As compared to average cost of independent living: $2000-$5000

These numbers are estimates and could vary wildly. 

 

a sUITE dOMINIUM

1.2M House

In the case of a home that costs 1.2M, we’ll assume it has 8 bedrooms, 8 bathrooms, and common areas.

Each Bedroom:   1,200,000/8 = $150,000

Security Deposit: $200,000

Buy Out* Deposit: $750,000/6 = $171,000

Closing Cost: 4% * $150,000 = $6,000

Service Fee: $10,000

Repairs: $10,000

Appliances and Household Electronics: $10,000

Furnishings for Bedroom, Kitchen, Common Areas: $10,000

Total Move in Cost: $567,000

Monthly HOA Fee, Home and Service Costs: $3000/mo

Deposit into Escrow to Secure your Place

Full Refund minus any actual cost incurred by your request if Cancellation occurs before signing Purchase Agreement

What you get back when you leave: 

Cost of bedroom

Security Deposit

Buy Out

Appreciation

Interest on Deposit

Example of Total Cost over 20 year stay:

567,000 Move in

$3000/mo x 12 mo/year x 20 years: $720,000

Refund Security Deposit: $200,000

Refund Buy Out: $171,000

Refund Bedroom: $150,000

Payout Appreciation on Bedroom at 20 years * 3.5% per annum appreciation: $150,000

 Interest on Buy Out Deposit of  $171,000 @ 3.5% for 20 years: $171,000

Interest on Security Deposit of  $200,000 @ 6% for 20 years: $400,000

minus closing cost at 4% on $300,000: $12,000

 Total Refund at 20 years: $1,080,000

You put in $567,000+720000=1,287,000

Pay Out at 20 years: $1,080,000

Total 20 year cost: $207,000  

or $863 per month

As compared to average cost of independent living: $2000-$5000

These numbers are estimates and could vary wildly.