Understanding the financial advantages of Land Lease communities
In the current economic climate, cost of living pressures have been increasing, meaning that there’s never been a better time to look at how a move to a Land Lease Community (such as Clifton Old Bar) might impact your finances.
Land Lease Communities have a fair and transparent model which offer many financial advantages for purchasers.
In a Land Lease Community, the resident purchases and owns their home, but leases the land it sits on from the operator under a site agreement.
Under the lease, the resident pays a weekly site fee. Many residents are able to access government rent assistance to cover a large portion of this rent. (For full information
about how rent assistance is determined and calculated see: www.humanservices.gov.au/rentassistance.)
As residents do not purchase the land that their home sits on, this allows for an affordable entry price point.
The purchase of a home in a Land Lease Community does not attract stamp duty, so you benefit from a substantial and immediate saving of thousands of dollars.
The owner of a Land Lease Community home is also exempt from paying Council Rates.
Unlike many Retirement Villages, there are no Exit Fees, Departure Fees or Deferred Management Fees applicable on a sale. The resident is entitled to keep all of the sale proceeds, including 100% of any capital gain.
To find out more about the financial advantages of a Land Lease Community, including how it stacks up against other models of retirement living, and the questions to ask when deciding on what’s right for you, click here and download our free guide to retirement living.