Retirement Village Costs in NZ: What to Know
- Longridge Country Estate
- Dec 17, 2025
- 4 min read
People often start looking into retirement villages long before they need to. The Village Guide research shows that around 70 percent of New Zealanders aged 65 plus who are considering a retirement village have already spent time reading about how retirement villages work and what the costs look like.
The same study found that costs are the number one thing people want clarity on. Ninety one percent of prospective residents said understanding fees is the most important part of their research.
Here is a straightforward overview of how retirement village costs usually work in New Zealand, with examples from Longridge to explain how our model fits in.
1. The Entry Price
Most retirement villages in New Zealand use an Occupation Right Agreement. You don’t buy the land or receive a title. Instead, you pay for the right to live in your villa.
Entry prices vary depending on location, size, layout and the quality of the build.
At Longridge, our villas are modern, spacious and warm, set across 90 acres here in Paeroa. You can see our current available villas here.
2. The Weekly Fee
Every retirement village has a weekly fee to help cover the running of the village. The Village Guide research shows this is one of the most looked at parts of retirement village living, with 56 percent of prospective residents and 57 percent of family members concerned about the cost of living in a village.
At Longridge, the weekly fee is currently $149 (November 2025). One of the things that makes our model a little different is that once both residents in a villa are 75 or older, the fee is fixed for life. If someone living in the villa is under 75, the fee can be adjusted each year in line with the Consumer Price Index.
The weekly fee includes:
council and water rates
the insurance for your villa
exterior maintenance
the upkeep of your lawns and gardens
the running of shared spaces and community areas
the running of the new Rec Centre once it opens
Power, internet, phone and contents insurance remain your responsibility. Because Longridge buys electricity in bulk, residents find their power costs are lower than what they paid before moving here.
3. The Deferred Management Fee (DMF)
This is the part of retirement village costs that creates the most uncertainty for people. The research shows that 66 percent of prospective residents and 59 percent of family members worry about hidden or complex fees.
The DMF is standard across most retirement villages. It’s the amount retained by the village when you leave. It contributes to facilities, maintenance and long term upkeep.
At Longridge Country Estate:
it is 7.5 percent per year
capped at 30 percent after four years
it does not increase after that
There are no refurbishment costs unless there is damage beyond normal wear.
There are also no sale or marketing fees.
You do not carry any capital loss if the market drops.
These details vary across NZ retirement villages, so it’s worth comparing them carefully.
4. Why the Costs Can Feel Confusing
The Village Guide research helps explain why people feel unsure in the early stages:
91% percent want clear information about costs
66% worry about hidden fees
47% say contracts can feel confusing
44% are unsure whether village living will suit them
30% feel delayed by the current property market
It’s easy to see why people feel uncertain early on. There’s a lot to compare and understand.
5. A Quick Example
If someone purchased a villa at Longridge for $755,000 and lived here for at least four years, the DMF would be capped at 30 percent.
They would receive 70 percent back when they leave.
Seeing how the numbers work in a real example can make it easier to compare villages.
6. Do All Retirement Villages Work Like This
Most villages follow the same general structure, but the differences lie in the details.
These can include:
how the DMF is calculated
whether there is a cap
how refurbishment costs work
whether sale or marketing fees apply
what the weekly fee includes
how utilities are handled
whether capital gains are shared
how capital loss is treated
This is where taking your time with comparisons is useful.
7. Why Costs Feel Different at Longridge
One of the big things people notice when comparing retirement villages is how far their money goes in different parts of the country. Around half of our residents have moved from Auckland. Many have told us that the shift has given them more financial freedom.
Paeroa is still one of the more affordable parts of the Waikato, and the difference in housing prices means people can often free up equity, move into a modern home, and still have money aside for travel, family or savings.
Once you are living in a retirement village, the costs also become more predictable. At Longridge there are no rates, no exterior maintenance bills and no surprise repairs. The weekly fee stays the same once both residents are over 75, which helps with long term planning.
People also appreciate the location. Paeroa is central and close to Auckland, Tauranga, Hamilton and the Coromandel. For many, it means being near family without the cost and pace of city living.
Together, these things are what people often notice about Longridge. The space, the value and the location tend to surprise people when they visit.
8. If You Are Still Early in Your Research
The research shows most people spend one to two years gathering information before doing anything. There is no pressure to rush the process.
If you are comparing retirement villages and want to understand how Longridge works, you are welcome to get in touch or drop in. We are happy to answer any questions and we always enjoy showing people around our village.
Longridge Country Estate, Paeroa
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