Discover if Land Lease communities are a better option for you or a family member, for retirement.
With moves earlier this year from Stockland, one of the biggest retirement home operators, towards a pilot trial of two land-lease communities, you might be wondering whether this might be a better option for you, or a family member, for retirement.
It can be a solid choice in certain circumstances, but as with anything, it’s important to understand exactly what’s involved, and how these communities compare to a traditional retirement village.
Read on to learn the basics, but if you have any questions along the way, we’re always available to help.
What are Land-Lease Communities (LLC’s)?
Land-Lease Communities are similar to retirement villages, in that you move into a house within a community situation, with shared facilities (and activities) such as swimming pools or bowling greens. They can be perfect for retirees who are still quite active and independent.
However, unlike a retirement village, the costs and arrangements do differ.
In a land-lease arrangement, you lease a block of land within a community, and buy or build your own house on that land. So, you own the house, but not the land it sits on.
You don’t pay entry fees, nor any stamp duty, and in most cases, operators don’t charge exit fees.
Each community also has their own age requirements – which may differ (and possibly be more flexible) to the standardised government regulations of 55+ in retirement villages.
And pensioners are able to claim rent assistance to help towards the land fees (which ultimately go towards covering all your rates, and the maintenance on the community’s common facilities).
More housing choice for your retirement living…
Besides a simpler and lesser entry cost with land-lease communities, you also tend to enjoy more choice when it comes to the house you live in.
Most of the time, you end up with a brand-new house with the ability to choose precisely what you want, in terms of floor plans, fittings, facades etc. You also tend to get the option of a larger house that you can customise to your requirements, and in some cases can even opt for a large garage or caravan accommodation.
The best bit? It’s likely that the house you choose will be quite affordable, starting at less than $200,000 (there are exceptions though, depending on the community you choose).
As with anything, there are a few downsides to consider, before choosing a lend-lease community over a retirement village.
As you own your house, you’re responsible for all of the maintenance or renovations should they be required while you’re there, both in terms of the organisation and to cover all of the costs involved.
If you wish to sell at any point, you’ll have to organise that too, through your own agent.
There’s also no guaranteed buyback. You can bequeath it to your family if you wish, but they will need to meet the age requirements to actually live there.
Often, you’ll find these communities are situated a little further out of the major cities, due to the amount of land required. So, your ideal location is certainly something to keep in mind – and you may be a little restricted by what’s available, and where.
And of course, your immediate and long-term health is a consideration too.
Always seek professional advice for your retirement planning…
Aged care, and determining your retirement planning strategies, can fast become a tangled web of confusion if you’re looking into your options for the first time. It’s also so important to get right, up front, to ensure you spend your money wisely, make the correct financial planning decisions and to guarantee you, or your loved ones, the best retirement and quality of life, possible.
When you talk to Claudia Rigoni-Brazzale at Aged Care Specialists Vic, you can breathe a welcome sigh of relief, knowing your future is in safe hands. Claudia can guide you step by step, with specialist aged care financial advice, to ensure the best outcomes for you and your family. Book in your complimentary telephone consultation to find out more today.