Part 2 of our editorial series: "Living the Land Lease Lifestyle"
For retirees and downsizers seeking both lifestyle and value, land lease communities offer a powerful combination of affordability, flexibility, and financial independence. In this article, we explore why this model is becoming a preferred choice for financially savvy Australians.
How It Works Financially
In a land lease community, you purchase your home and lease the land it sits on. This structure significantly reduces upfront and ongoing costs, while still giving you full control of your home. Key financial features include:
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No Stamp Duty – A major saving on entry (typically 4–5% of purchase price in most states).
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No Council Rates – These are included in the weekly site fees.
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No Body Corporate or Strata Fees – Unlike strata units or retirement villages.
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Keep Your Capital Gains – When you sell your home, any value increase is yours to keep.
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Eligibility for Commonwealth Rent Assistance – If you're on the Age Pension, you may receive fortnightly payments to help cover site fees (Learn more).
Persona Match: David – The Financial Realist
David, 70, is a self-funded retiree who recently sold his high-maintenance suburban home. Rather than buying again, he chose a new home in a land lease community near Brisbane.
Why it suits him:
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He has full control of his home.
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His site fees are partly offset by rent assistance.
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He retains flexibility and liquidity for travel or future needs.
"It's the smartest financial move I've made in retirement," says David. "Everything is predictable and affordable."
Example Breakdown: Cost Comparison
|
Cost Element (estimate only) |
Land Lease |
Retirement Village |
Strata Apartment |
|
Stamp Duty |
$0 |
$15,000 (est) |
$15,000 (est) |
|
Ongoing Fees |
$180/wk |
$550/month + DMF |
$250/month |
|
Exit Fee |
None |
Up to 35% DMF |
None |
|
Capital Gains |
Retained |
Shared or lost |
Retained |
(Figures are indicative only. Always review community-specific contracts.)
Industry Perspectives & Credibility
Experts highlight the sector’s financial resilience:
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CBRE reports over 130,000 Australians living in land lease communities and forecasts ongoing demand.
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Millar Merrigan explains the land lease model as a predictable, investor-backed alternative to traditional retirement.
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Downsizing Made Simple offers a balanced view on affordability and contract transparency.
Final Thoughts
Land lease communities aren’t just about affordability — they empower retirees to take control of their financial future while enjoying a modern, connected lifestyle.
Downsizing.com.au Presents Our Editorials Series - "Living the Land Lease Lifestyle"
- What Is a Land Lease Community?
- The Financial Benefits of Land Lease Living
- Land Lease vs Retirement Villages vs Strata: Which Model Is Right for You?
Dislcaimer: This article is for general informational purposes only and does not constitute financial or legal advice. Please seek independent professional guidance before making property decisions.
