Is a land lease community right for your retirement?

Land lease communities are exploding in popularity, and for good reason!

They bring together community, great facilities, and an active lifestyle. Plus, they do it all for an extremely affordable price. Across the country, Aussies in their mid-50s to late-60s are flocking to this new type of retirement living.

In this blog, we’ll take a quick look at land lease communities and the costs involved in joining one.

What is a Land Lease Community?

A land lease is a different model from traditional home ownership, or even buying into a retirement village. The key divergence is that in this model you own your home but not the land it sits on. The land is instead leased from the operator.

This means you only pay upfront to buy the house itself, making the whole transaction significantly cheaper. Even better, you don’t pay stamp duty and, unlike retirement villages, in most cases you don’t pay a fee when you sell, like a deferred management fee.

The cherry on top is the great facilities a lot of land lease communities have. Think everything from pools, bars and gyms to indoor cinemas and even golf simulators!

How much does buying into a land lease cost?

Now, for the all-important question: how much does it cost? Well, a new home in a gated estate with great facilities can cost as little as $300,000.

It’s important to note that prices vary greatly depending on the house and the facility you are buying into. Buying into a land lease on the higher end can cost $1 million or more.

The other cost associated with a land lease is the weekly rental fees. Much like the cost of your home, the prices vary greatly depending on the size of the land and the facility. The great news is, if you’re a pensioner you may be eligible for Centrelink assistance with this rent.