This month we hear from Piere, our Community Sales Manager about the key themes on people’s minds when they come in to talk to her.
“Clients have consistently been coming to chat to me when they’re considering the move to downsize. Most often they are looking for a low-maintenance, flat-level home, a way to free up capital, and a vision to increase the quality of their life for the next 20 years.
However, in recent months the emerging concern I’ve noticed is clients looking for more financial certainty in the current economic climate.
I always refer clients back to the financial advantages a Land Lease Community like Clifton offers. We’ve summarised these advantages below to show you how the structure of a Land Lease community might be beneficial, depending on your individual circumstances.“
- Affordable entry point
As residents can enjoy living on the land without having to purchase it, this allows for an affordable entry price point. The only upfront cost is the purchase price of your home, which you own outright. This means that many people who move into a Land Lease Community can free up a significant amount of equity from the sale of their old family home, and this can be used to enhance their lifestyle in retirement.
- 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 (Clifton), meaning you are exempt from paying council rates.
- Government rent assistance
Many residents in a Land Lease Community can access government rent assistance to cover a large portion of the weekly rent that is payable to the operator under this land lease agreement.
- No stamp duty
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.
- No entry fees
Apart from the cost of the home itself, incoming residents into a Land Lease Community are not required to pay any entrance fees whatsoever.
- No exit fees
This is one of the biggest differences between Land Lease Communities and traditional Retirement Villages. Most Land Lease Communities charge no exit fees, departure fees or deferred management fees if you choose to sell your
home. This is very different from traditional Retirement Villages where it is common to charge an Exit Fee or Deferred Management fee of up to 30-40% of the value of your home if you sell.
- You keep any capital gain
Your home is your own in a Land Lease Community, and so are any capital gains you make upon selling it. The arrangement is simple – you keep 100% of the proceeds from a sale.
- A way of life
The benefits of a land lease community extend beyond just financial savings. Residents also gain access to communal facilities that would be prohibitively expensive for an individual homeowner to maintain on their own. At Clifton Yamba for instance, residents will enjoy access to a wide range of amenities such as a pool, clubhouse, fitness centre, movie theatre, bowling green, croquet lawn, and many others, which help create a sense of community and encourage social interaction.
The crux of it
Land lease communities are proving to be a popular and attractive option for many people seeking greater financial security, access to communal amenities, and the ability to live their lives on their own terms. We encourage you to get in touch to find out more.
