The truth about downsizing communities vs retirement villages

As you follow the yellow brick road towards downsizing and retirement, it’s important to understand the differences between senior living communities.

While both land lease communities and retirement villages offer on-site amenities, low-maintenance accommodation and a sense of safety and security, there are some key differences.

Here’s how land lease communities and retirement villages are different.

Homeowners

Land lease communities like Lifestyle Communities® typically attract younger, active, independent, like-minded semi-retired and working homeowners, looking for a space that’s truly their own, who are looking to strike the perfect synergy between connection and privacy, independence and activity.

The homeowners that call land lease communities home are also typically at the beginning of their downsizing journey, looking to free up equity and unlock possibilities as they enter a post family home life.

Because land lease communities are different to retirement villages, you don’t need to be retired to make your move! While many homeowners within these communities are retired, there are still a number of individuals who work full-time, part-time, casually or are self-employed.

Amenities and activities

Both lifestyle communities and retirement villages offer a range of on-site facilities to make staying active and social easy. You’ll often find indoor swimming pools, bowling greens, gymnasiums and libraries at a range of senior living communities (but we like to think ours are a cut above the rest!).

All Lifestyle Communities® feature an impressive range of world-class amenities that make active living oh so effortless and make you feel like you’re on holiday every day. Some of the facilities you’ll find at our communities include:

• Business centre
• Micro-Brewery
• Communal Boat
• Communal electric bikes
• Communal electric cars
• Indoor pool and spa
• Gymnasium
• Wellness centre
• Sauna
• Cinema
• Tennis court
• Pickleball court
• Bocce or croquet lawn
• Workshop
• Bowling green
• Makers Studio
• Function spaces
• Dog wash

Financial model

Perhaps the biggest difference between land lease communities and retirement villages is the financial model under which they operate. Land lease communities operate under a land lease model, whereby homeowners own their home while leasing the land. Under a retirement village model, residents often only have a license right to occupy a home, not own it.

Fees

The Weekly Site allows access to all shared community/resort facilities managed by Lifestyle Communities and the upkeep of the community, including day-to-operations and maintenance of front gardens.

The Deferred Management Fee (DMF) covers the cost of improving and contemporising your community over time. As a long-term operator, Lifestyle Communities has refurbishment plan in place for every community. The DMF keeps the cost of purchasing a home as low as possible.

Legislation

The legislation for land lease communities and retirement villages varies depending on the state or territory they’re located in.

Here’s a brief outline of the main differences you’ll find in these legislations:

Retirement villages

You may pay stamp duty when you buy into a retirement village home, depending on the title, leasehold or licence.

You may keep some or all of any capital gain minus any deferred management fees.

Land lease communities

In a land lease community, you own the home and pay a weekly or monthly rental on the site the building sits on. For this reason, you are not required to pay stamp duty.

Because you’re essentially renting the land, you may be eligible for government rental assistance; you can’t apply for rental assistance in a retirement village.

Both your home and land will likely increase in value over the years. As a result, if you choose to sell your home, you’ll benefit from any increases in value of the property and the land.

If you’re looking to downsize to a friendly and vibrant community of like-minded people, with access to a range of incredible amenities, then we think living at a downsizing community, like Lifestyle Communities®, could be perfect for you!

An important point to remember is that no two communities are the same, so we recommend researching and visiting your local communities before deciding which one’s the perfect spot for you. If you would like help finding a community right for you, give us a call on 1300 50 55 60.