How land lease living works: a guide for downsizers & their families

What is land lease living?

Land lease living is a smarter, more flexible way to downsize. In simple terms: you buy your home, lease the land, and keep the savings.

You’ll own a modern home in a purpose-built lifestyle community, while leasing the ground it rests on. Because the land remains with the operator, you don’t pay stamp duty or council rates—and you still enjoy the privacy of your own freestanding house, protected by a secure long-term site agreement.

It’s an approach that gives you financial freedom, the security of a gated setting, and the comfort of living among like-minded neighbours with access to shared facilities. Many residents describe it as a simpler, more affordable way to enjoy retirement living—without the heavy contracts or high fees of traditional retirement villages.

Why is land lease a popular retirement choice?

*Fee structures and community facilities vary by village—always check the specifics of your chosen community.

What does land lease living really cost?

The short answer: usually less than you think—and with fewer surprises along the way.

Up-front savings

• Lower purchase price – You’re buying the home, not the land, so it often costs less than a comparable suburban house.
• No stamp duty – Keep thousands in your pocket from day one to put towards travel, hobbies or a rainy-day fund.

Simple week-to-week budgeting

• One predictable site fee – Covers your land lease, community facilities, gardens and management—no juggling multiple bills.
• Fair and transparent increases – Site fees are reviewed in line with CPI or by resident agreement, as set out in state legislation.
• Extra support for pensioners – Eligible Age Pension recipients may receive Commonwealth Rent Assistance to reduce their site fee (up to $212 per fortnight as of March 2025 – check Services Australia for current rates).

When it’s time to sell

• Sell on your terms – List with a local real estate agent, choose your buyer, and set the price that feels right for you. Or use Hampshire’s internal resale network for added convenience.
• Keep the capital gain – Any increase in your home’s value (minus normal selling costs) is yours to keep.

• No exit or deferred management fees in most villages* – That means more money stays in your pocket when you move on.

   

The takeaway: selling in a land lease community is refreshingly straightforward—so your plans, your savings, and your future remain firmly in your hands.

*Always check your Residential Site Agreement, as fee structures can vary by village.

Land lease vs a typical retirement village

Choosing the right community is about more than bricks and mortar—it’s about the lifestyle, peace of mind and financial freedom you’ll enjoy every day.

The table below shows at a glance how land lease living stacks up against a typical retirement village model, so you can see why more over-50s are opting to buy their home, lease the land, and keep the benefits rolling in.

*Fee structures vary—always check the specifics of your chosen village.

Security & peace of mind

• Protected by law – Your long-term site agreement is backed by state residential park legislation, so your right to stay - and how fees can change - is clearly set out and legally enforced.
• No nasty surprises – Every cost is spelled out up front. There are no hidden fees, no deferred management charges, and no exit penalties lurking in the fine print.

In short: you get rock-solid legal protection and total cost transparency, so you can relax and enjoy community life with full confidence.

Want to know more?

Our friendly Hampshire Villages team is here to guide you with clear advice on contracts, finances and government assistance, so you can make confident decisions about your future.

Contact us for more or find answers to frequently asked questions about Hampshire Villages and land lease communities.

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