The differences between retirement villages and land lease communities

Author and finance expert Rachel Lane said everyone had the option of staying in their own home, but many found it to be too much maintenance or too lonely if their children had moved on or lost a spouse.

“A lot of people look at downsizing to either a land lease community or retirement village however, they are distinctively different and can be hard to compare. My advice is to break it down to the ingoing, the ongoing and the outgoing costs of each.

The ingoing amount is normally straightforward – the amount paid for the home or unit.

“The ongoing cost in a retirement village is the general service charge, in a land lease community it is the site fees.

The unique ownership model in a land lease community allows you to own your own home and lease your land, which means many downsizers are eligible for rent assistance on their site fees.

“The greatest confusion comes from the exit fees, also called deferred management fees. These are standard in retirement villages, and normally a percentage accrued over a period of time, typically anywhere between 25% and 50% after 10 years and there can be sharing in capital gains to factor in as well.

“Land lease communities have no government charges (stamp duty or council rates), and there are no exit fees, and with your ongoing cost of leasing the land being reduced through government assistance – it is a very popular and affordable housing option.

“Being part of a like-minded community significantly enhances quality of life too,” Rachel said.


Discover more about the lifestyle benefits after downsizing by attending a discussion group morning tea.

Ballarat Golf Club

Session dates:
Friday 24 July 2020
Friday 31 July 2020

Session time:
10:30am – 12:00pm

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