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Why seniors are rushing to Land Lease Communities

If you are thinking about moving into a Land Lease community, it is important that you are well informed as to how the financial arrangements work, particularly when compared with other types of retirement communities, such as traditional retirement villages.

Why Seniors are rushing to Land Lease Communities
Ocean Club Resort
Why Seniors are rushing to Land Lease Communities
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Offering favourable lifestyle benefits and a more transparent financial model, Land Lease Communities are increasingly popular – particularly for more younger retirees.

Here you’ll find eight compelling financial reasons for considering the move to Land Lease Community living:

1. No entrance fees

Apart from the cost of the home itself, incoming residents are not required to pay any entrance fees whatsoever.

2. No stamp duty

The purchase of a home in a Land Lease community does not attract stamp duty, so you benefit from a substantial saving of thousands of dollars.

3. No exit fees

Most Land Lease communities charge no exit fees, departure fees or deferred management fees if you decide to move out.
 
This is very different from traditional Retirement Villages where it is common to charge an Exit Fee or Deferred Management fee of up to 40 per cent of the value of your home.

4. No council rates

In a Land Lease Community, you purchase and own your home, but you lease the land it sits on from the operator, removing any requirement to pay rates.
 
5. You keep any capital gain

Your home is your own in a Land Lease community, and therefore any capital gains you make upon an exit remain yours. The arrangement is simple – you keep 100 per cent of the proceeds from a sale.
 
Retirement Villages however, may keep a percentage of any capital gains, thereby reducing the amount that you get back when you sell.

6. Affordable Price Point

As residents can enjoy living on the land without having to purchase it, this allows for a more affordable entry price point. The only upfront cost is the purchase price of your home, which you own outright. This means that many new Land Lease homeowners are able to free up a significant amount of equity from the sale of their old family home.
 
7. Government Rent Assistance

Many residents in Land Lease communities are able to access government rent assistance to cover a large portion of the weekly rent that is payable to the operator. Currently this sits at $67.60 per week for couples and $63.50 per week for singles.

8. Better Value

The benefits of all these mean that you as a homeowner in a Land Lease community, will enjoy unlimited access to resort style facilities (such as swimming pools, bowling greens and tennis courts) with financially easier arrangements.
 
It also gives you the opportunity, if you wish, to enjoy this relaxed lifestyle with a group of similarly active and like-minded friends.
 

Why are seniors rushing to Land Lease Communities? READ MORE


 



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