The GemLife model
Have you ever heard the term land lease community and wondered exactly what it means, or wondered what makes GemLife’s over-50s lifestyle resorts different from a retirement village?
GemLife over-50s lifestyle resorts operate as land lease communities (LLCs), also known as residential parks, a model that provides an innovative and sustainable way to finance affordable housing ideal for those ready to downsize in order to upsize their lifestyle.
Living in a lifestyle resort is not just for the retired, it is also for those working full-time or part-time as well as empty-nesters. Life in a LLC also provides residents with a community of neighbours that share similar lifestyle aspirations and many social opportunities such as events and activities – both organised and informal.
Living in an over-50s lifestyle resort allows residents to own and occupy their own homes, designed specifically with a low-maintenance, lock-up and go lifestyle in mind as well as a multitude of long-term financial benefits including:
No entry or exit fees
Residents in LLCs lease the land that their house sits on instead of purchasing it, resulting in no entry fees as well as exemption from council fees and stamp duty. In addition to no entry fees, GemLife does not charge exit fees (sometimes called Deferred Management Fees) should you choose to sell your home.
Retention of 100% of capital gains
Along with no exit fees, homeowners of properties in LLCs keep 100% of capital gains upon the sale of their homes, unlike retirement villages, which often keep a percentage of capital gains.
If you are a pensioner in a LLC you may be eligible for Government Rental Assistance which helps cover a large portion of your site fees and is payable at a rate of 75 cents for every dollar of rent paid above the ‘rent threshold’.
LLCs charge weekly site fees to cover the cost of operating and maintaining the site and facilities. At GemLife resorts these fees contribute to security gates, the resort bus, country club and communal area maintenance, components of council fees and charges, as well as onsite managers and administration of the resort. Site fees are reviewed annually.
In short, LLCs are based on a simple and transparent structure that provides homeowners with the flexibility and financial freedom to embrace a whole new lifestyle.