← All worked examplesWorked example · Retirement living

An 80-unit ILU village, with DMF.

Sample assumptions, the DMF and refurbishment mechanics that decide long-term returns, and the entry pricing that pays back the development.

Scale80 villas
Program36 months
Development margin (entry only)negative on base

02 / Sample assumptions

The market context behind the numbers.

Pricing benchmarks, build rates and finance terms used in this retirement living example. Every one is editable in Popurise.

Assumption sheet07 lines

Entry price avg: $685,000
DMF: 30% of resale price after 5 years
Recurring fee: $240 / week / unit
Capital gain share: 50% to operator on resale
Turnover rate: 8 years avg occupancy
Construction rate: $3,250 / m² built
Senior debt: 50% LVR, 7.5% all-in

03 / Key inputs

The inputs that drive the deal.

Grouped the way Popurise groups them. Change a category, watch the retirement living output set respond.

0104 items

Site and scheme

Site area: 21,000 m²
Villa avg: 115 m²
Community GFA: 1,600 m²
Car parks: 120 covered

0206 items

Cost stack

Land: $7.20M
Civils and shared: $5.10M
Construction (villas): $29.90M
Community buildings: $5.20M
Pro fees and authority: $3.10M
Finance and selling: $5.40M

0304 items

Revenue

Entry sales (80 ILUs): $54.80M
Recurring fee pa: $998,400
DMF income (steady state): $1.60M pa
Capital gain share (steady state): $0.85M pa

04 / Base case outputs

The output set, in full.

Every number a developer wants on the screen for a retirement living deal, in one place.

Hero outputDevelopment margin (entry only)

negative on base

Secondary metrics07 lines

Initial development cost
$55.90M
Entry sales revenue
$54.80M
Stabilised recurring NOI
$2.45M pa
Yield on cost (stabilised, on hold)
4.38%
Equity IRR (15 yr hold)
16.8%
Peak debt
$22.0M
Cost per unit
$698,750

05 / Scenarios

Base, downside, stretch. Side by side.

Three scenarios on the same retirement living project. No copied files. The decision is which one to take to investment committee.

Base case

base

Entry prices recover land plus build, DMF and resale carry returns.

Entry marginnegative
Stabilised NOI$2.45M
Equity IRR (15 yr)16.8%
Peak debt$22.0M

Verdict

Hold model. Entry sales are about cost recovery. Returns live in DMF and capital share.

Downside

downside

Entry pricing softens 5%, turnover extends to 10 years.

Entry shortfall$2.74M
DMF income$1.28M pa
Equity IRR (15 yr)11.2%
Peak debt$24.8M

Verdict

Returns soft. Longer hold required to recoup. Capital plan needs revisiting.

Stretch

stretch

Entry pricing lifts 4% on stronger downsizer demand.

Entry recovery+$2.19M
DMF income$1.78M pa
Equity IRR (15 yr)20.5%
Capital share$1.05M pa

Verdict

Strong hold outcome. Demonstrates the model when entry pricing has runway.

06 / Decision takeaway

Retirement living is a long hold, not a development. Entry sales recover cost. DMF and capital share carry the returns. A developer who treats this like residential build to sell will misprice the deal by 20 percentage points.

Retirement living feasibility solution

Open

Retirement living feasibility model

Open

Shape retirement living feasibility in Popurise.

Tell us how your team models this sector today. We are building it with the developers who will use it.