The Benefits of a Land Lease Community Compared to a Retirement Village

When you start thinking about simplifying life and embracing a more relaxed lifestyle, the options can sometimes feel overwhelming. Two of the most common choices for those who are looking to downsize are land lease communities and retirement villages—but what many people don’t realise is just how different they are! When deciding between a land lease community and a retirement village, whatever your preference is, it's important to have all the necessary information to determine which living model works best for you.

What is a Land Lease Community?

In a land lease community like Solana, you own your home but lease the land it sits on. It’s a simple, secure, and affordable way to enjoy resort-style living..

At Solana, your weekly site fee covers the use and upkeep of all common facilities—think pools, gyms, security, gardens and more. There are no entry or exit fees, no stamp duty, and you keep 100% of your home’s capital gain if and when you choose to sell.

How Does a Retirement Village Differ?

In a typical retirement village, the setup is quite different. While it varies between operators, many retirement villages involve:

• Paying an entry or exit fee

• Sharing any capital gains which can potentially impact the percentage of capital gain.

• Paying government charges, such as stamp duty or council rates

• Paying a deferred management fee (DMF) upon departure, which can be as high as 30% or more of your home’s value

• Covering additional refurbishment costs

Additionally, residents in retirement villages are often required to pay below a specific threshold to qualify for rent assistance. As a result, most people living in retirement villages do not usually receive rent assistance.

When selling, this structure often means that the legacy you leave behind for your family is less than desired.