Understanding Landlease Lifestyle Homeownership

May 1, 2024

Landlease lifestyle living represents a modern housing approach, however it is often misunderstood masking the models’ distinct advantages.

At its core, this model entails owning a unit while leasing the land it occupies, challenging conventional homeownership paradigms. Despite misconceptions, this arrangement brings financial relief by exempting residents from council rates and water usage costs.

On the surface, a weekly site fee of $200* presents a seemingly daunting $10,400 over a year. However, when factoring in rate and water savings and potential rent assistance, the estimated cost becomes more manageable than assumed and equates to a more reasonable $3,750, or $72 per week to cover essential facilities, maintenance, and community services.

This stability contrasts sharply with fluctuating utility costs in traditional housing. Comparative analysis reveals that renting in landlease communities often proves more economical than independent accommodation. Additionally, the sense of community, dedicated management, and access to facilities enhance residents’ quality of life.

Moreover, landlease lifestyle homeownership with Park Lane Living yields additional benefits such as, discounted electricity rates, and minimized home maintenance costs, all contributing to affordability.

Downsizing to smaller, energy-efficient homes within secure community environments further reduces expenses and environmental impact. Moving into newly built homes equipped with modern amenities alleviates concerns about repairs and updates, allowing residents to fully enjoy community amenities and social opportunities.

And what does Park Lane Living offer that most other landlease communities don’t?

Unlike communities that charge a Deferred Management Fee or DMF, Park Lane Living don’t take a percentage of the sale price when homeowners decide to move. This ensures that all financial benefits, including appreciation in property value, remain with you and your estate.

In some communities, a 20% DMF on a $450,000 sale price would mean $90,000 deducted from the sale. At Park Lane Living, we don’t charge a DMF, saving you this amount and affirming our belief that all capital growth should remain with the homeowner.

Affordability and transparency are core to our philosophy at Park Lane Living. All fees and charges are clearly identified in our Part 4A paperwork, which acts similar to a lease. This ensures that you fully understand the financial aspects of living in our community without any hidden or deferred fees, like a DMF.

In essence, dispelling myths surrounding landlease lifestyle homeownership unveils a pragmatic and fulfilling living option. By comprehending the true value proposition, individuals can make informed decisions that align with their lifestyle and financial goals, ultimately enriching their overall quality of life.

For more information, call Donna now on 1300 300 425. She will be happy to further put your mind at ease and hopefully set you on your downsizing journey with confidence.

*Example based on a weekly fee of $200 per week less a Victorian state average of $23 for water usage, $29 for council rates and $76 of rent assistance per week.