Do I own my own home and the land in a retirement community?

What is the difference between a retirement village and a retirement community? While planning for retirement, many questions will inevitably arise, including, “will I own my own home and the land upon which it is situated?”

In the case of a retirement village, the answer is, there is no easy answer. There are a range of different legal structures and financial arrangements governing retirement villages. So in some cases, you might be able to own a bricks-and-mortar home outright. In other words, when you buy a dwelling in a retirement village, you would own it in the same way you would if you bought a standard house.

In other scenarios, you might hold a long-term lease, which means you don’t own the building or the land but have the right to live in the unit or villa for the term of your lease. In another arrangement, you might be required to make regular rental payments on your lease structure.

Just like in a game of chess where each piece has its own rules, each State and Territory has its own legislation around retirement villages!


Own The House, Rent The Land

Also referred to as lend lease communities, under the land lease model, you own the house in the retirement community, but the community operator maintains ownership of the land.

So while you’re living within a residential lend lease community, you’ll be asked to pay weekly site fees to effectively ‘lease’ or ‘rent’ the land your dwelling sits on. In effect, a lease agreement is being made over the land, rather than a building.

Because of this ‘leasing’ structure, residents who receive the pension are eligible for Federal Government rent assistance for retirement to reduce the weekly site fee. A retirement community also allows for more affordable entry into the market because purchasers only have to buy the house upfront, not the land.

Read more on eligibilty for Federal Government Rent Assistance through another article we recently published. 


INCREASING Growth and Demand

Before we dive further into the details of a retirement community structure, let’s explore why there is increasing demand for this type of living option.

A lend lease retirement community model offers over 55s who are asset rich but cash poor the chance to sell their home, leverage their home equity and have an independent lifestyle in their preferred location.

Willow Cobram is an example of a well-considered land lease retirement community. Our Resort was created as a way to cater to a huge section of the over 50s keen to downsize and upgrade their lifestyle.

The township of Cobram was chosen as a popular tourist destination on the Murray River, and for its accessibility to Melbourne and other regional centres.


Land Leasing: a unique ownership model

Let’s take a closer look at the way a residential land lease community is set up. As mentioned, you own your own home and lease your land in this retirement community.

While retirement villages typically have convoluted and complicated structures, land lease scenarios have a transparent fee structure, offer reduced land lease fees with government assistance, and your house can be sold without the cost and complications associated with retirement villages.

At Willow Cobram Resort, we offer a long-term 50-year secure lease on the land on which your (relocatable) home is situated.  As a homeowner at Willow, you are also protected under the Residential Tenancies Act. The secure lease gives you an exclusive right to occupy the land and to use all of the Resort’s luxury facilities.

In line with other land lease retirement community models, there are no stamp duty or conveyancing fees required when buying a home at Willow. There are also no council rates or owner’s corporation fees payable at the Willow Cobram Resort.

Based on these reasons and more, residential land lease communities are fast becoming a popular and affordable retirement option. 

Willow Cobram Resort offers vibrant resort-style living in a gated retirement community. You can’t go past Willow for a premium location, affordability and security. To get more information about our Residential Resort, contact us now.