AUSTRALIA IS EXPERIENCING SKYROCKETING PROPERTY PRICES AND LIMITED AVAILABILITY OF AFFORDABLE HOUSING BUT LAND LEASE COMMUNITIES LIKE GEMLIFE’S CAN PLAY A ROLE IN ALLEVIATING THE NATION’S HOUSING CRISIS.
According to GemLife CEO and Director, Adrian Puljich, Land Lease Communities (LLCs) or over-50s lifestyle resorts offer an alternative housing solution that can contribute significantly to lessening the housing squeeze.
“One of the key drivers for buyers at over-50s lifestyle resorts is the desire to free up time from the maintenance of large family homes and gardens. By buying a home in an over-50s community, much-needed housing stock is freed up for families,” he said.
“It’s a win-win situation. More homes become available on the market and older Australians can take advantage of the more affordable price point for homes in an LLC because they are paying for the home but not the land, which is ‘leased’,” he said.
“This also allows older Australians to free up capital from the sale of their family home and put that money towards enjoying a better-quality lifestyle in their retirement or semi-retirement.”
On average, GemLife homeowners net $250,000 in cash or equity after buying at an over-50s resort.
Federal Government incentives
The Federal Government announced in the recent budget that it was looking to increase Commonwealth rental assistance in 2024 by 15 per cent, a measure that would add to the appeal of the already fast-growing land lease sector.
“Over-50s resorts have become increasingly popular with retirees and downsizers over the past several years. Because homeowners effectively rent the land upon which their home is built – paying weekly site fees – many are eligible for government rental assistance which helps offset this cost,” Adrian said.
“The increase to government rent assistance will be an attractive bonus for buyers.”
The rental assistance increase comes on the heels of another raft of Federal legislative changes, which came into force in January, aimed at actively encouraging older Australians to downsize by offering incentives through superannuation and pension deeming rates.
For example, the Australian Tax Superannuation now permits individuals to contribute up to $300,000 (and up to $600,000 for couples) from the proceeds of the sale of their home into their superannuation. And when purchasing a land lease home, the age limit of 70 no longer applies.
Sustainable land use
Because over-50s lifestyle resorts use land more efficiently, they also contribute to sustainable land use.
“Over-50s resort developments can maximise the number of dwellings per unit of land which assists in reducing urban sprawl. The efficient and use patterns align with sustainable urban planning principles,” Adrian said.
Lifestyle, security and transparency
With great locations, more affordable price points, and security of tenure that’s protected through state legislation, LLCs have an important role in addressing the country’s housing challenges.
“The terrific lifestyle on offer, the security of living within a gated community, and the transparent fee structure, together with the government’s recent incentives, will create even more demand for over-50s resort living,” said Adrian.
“GemLife is excited about continuing to innovate in the sector and provide best-in-class communities for downsizers and retirees.”