A New Lease on Life

A Guide to Downsizing Choices

When it’s time to choose the right community, there are a few things to consider. Firstly, your current age and health, followed by your financial position and independence level. You might be focussed on your lifestyle preferences or perhaps the need to consider future care options. It is important to recognise the stage of life you are in when looking at comparisons. Land lease communities whilst designed for residents to “age in place” tend to attract younger more active residents. Whilst retirement villages provide more support services to older and less able residents.

Taking the time to understand the different financial benefits and aspects about land lease communities and retirement villages, you will be able to make an informed decision. Here is a guide to help simplify and understand the differences.

2 min read

We understand the importance of taking the time to explore the different lifestyle options available, so you can make a well-informed decision.

Land Lease Communities

Land lease communities provide a secure, active, and social lifestyle with amenities like clubhouses, pools, tennis or pickleball courts, and gyms. The focus is on providing a healthy and fulfilling lifestyle through community, leisure, and freedom to pursue personal interests.

Residents own their homes outright, gaining access to modern homes and shared amenities, while the land lease model provides more capital for lifestyle pursuits. Other factors include:

  • Age Demographic: Land lease communities appeal to residents from the age of 50* either retired or nearing retirement.
  • Care and Support: Whilst land lease communities are designed for “aging in place” they appeal to active residents who initially require minimal care and support.
  • Community Amenities: Many land lease communities have a broad range of community amenities plus active and vibrant social calendars. The amenities focus on recreation and socialisation benefits and may include clubhouses, sports bars, pools, gyms, bowls greens, cinemas, and much more.
Hometown Australia's lifestyle communities make it possible to spend more money on the things that matter thanks to the land lease living model.

Retirement Villages

Moving into a retirement village could be a great option for you and should be considered as a downsizing or retirement option. Retirement villages may provide seniors with services who are looking for care, convenience, and community. Here are some key reasons why you may choose a retirement village:

  • Age Demographic: Retirement villages have an average entry age of 78+, and suit residents who require some degree of care and support.
  • Care and Support: Retirement villages will often be home to older residents who need occasional support and those who need daily home care. The primary purpose of retirement villages is to make visits from healthcare professionals more accessible and convenient.
  • Communal Facilities: Many retirement villages will have communal spaces you can use for book club meetings, or a milestone birthday celebration and some villages provide onsite meals. They generally have few recreational amenities such as pools, and bowling greens. The emphasis in these villages is less on recreation rather more focused on care, medical support, and organised transport. These facilities are particularly useful for residents who are less independent.

Retirement Villages: A Comparison

Retirement Villages have a different financial structure to land lease living communities. Below is a comparison to help you understand the different financial considerations.

Land Lease
Retirement Village
Contract type
You lease the land where your house is located. The contract can only be terminated under limited circumstances. You own your home.
You purchase the right to live in a unit or villa located within the village. You do not own the home.
Profit/Retain capital gains
You keep 100% of any profit made on the sale of your home.
Your village operator may share any, or all, of the profit on sale.
Exit fees
No exit fees. Hometown Australia does not charge exit fees.
You may pay exit fees. Usually fees are accrued over time ranging from 25% - 50% based on either the purchase or sale price of your home.
Government subsidies
If you receive any government pension, you may be eligible for rental assistance, which may be paid towards the cost of your site fees.
As a pensioner, you may be eligible for rental assistance if you paid under $203,000 to enter the village. (As at July 17 2019).
Ongoing fees
You pay a site fee. This can be offset through Government subsidies.
You may pay fees to the owners’ corporation and to the village operator for operation of the village and any additional private services.
Retirement Village
Contract type
You purchase the right to live in a unit or villa located within the village. You do not own the home.
Profit/Retain capital gains
Your village operator may share any, or all, of the profit on sale.
Exit fees
You may pay exit fees. Usually fees are accrued over time ranging from 25% - 50% based on either the purchase or sale price of your home.
Government subsidies
As a pensioner, you may be eligible for rental assistance if you paid under $203,000 to enter the village. (As at July 17 2019).
Ongoing fees
You may pay fees to the owners’ corporation and to the village operator for operation of the village and any additional private services.
Land Lease
Contract type
You lease the land where your house is located. The contract can only be terminated under limited circumstances. You own your home.
Profit/Retain capital gains
You keep 100% of any profit made on the sale of your home.
Exit fees
No exit fees. Hometown Australia does not charge exit fees.
Government subsidies
If you receive any government pension, you may be eligible for rental assistance, which may be paid towards the cost of your site fees.
Ongoing fees
You pay a site fee. This can be offset through Government subsidies.
Retirement Village
Contract type
You purchase the right to live in a unit or villa located within the village. You do not own the home.
Profit/Retain capital gains
Your village operator may share any, or all, of the profit on sale.
Exit fees
You may pay exit fees. Usually fees are accrued over time ranging from 25% - 50% based on either the purchase or sale price of your home.
Government subsidies
As a pensioner, you may be eligible for rental assistance if you paid under $203,000 to enter the village. (As at July 17 2019).
Ongoing fees
You may pay fees to the owners’ corporation and to the village operator for operation of the village and any additional private services.
Land Lease
Contract type
You lease the land where your house is located. The contract can only be terminated under limited circumstances. You own your home.
Profit/Retain capital gains
You keep 100% of any profit made on the sale of your home.
Exit fees
No exit fees. Hometown Australia does not charge exit fees.
Government subsidies
If you receive any government pension, you may be eligible for rental assistance, which may be paid towards the cost of your site fees.
Ongoing fees
You pay a site fee. This can be offset through Government subsidies.

Read more about downsizing options

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The Difference Between a Lifestyle Community and a Retirement Village

We are glad you asked! Let's explore the benefits of downsizing to a Hometown Australia community...

thumb
The Difference Between a Lifestyle Community and a Retirement Village

We are glad you asked! Let's explore the benefits of downsizing to a Hometown Australia community...

Retired couple enjoying wine at Hometown Community
Downsizing for Retirement: Financial Benefits & Considerations

Learn about the financial benefits of downsizing and make your next move with total confidence!

thumb
Four Benefits to Land Lease Living

In this article we take a look at four of the main benefits why savvy downsizers are choosing lan...

thumb
Navigating the Differences: Land Lease Communities vs. Traditional Homeownership

Ready to ditch the spare rooms and endless chores? Discover smart downsizing options with Hometow...

thumb
The Difference Between a Lifestyle Community and a Retirement Village

We are glad you asked! Let's explore the benefits of downsizing to a Hometown Australia community...

Retired couple enjoying wine at Hometown Community
Downsizing for Retirement: Financial Benefits & Considerations

Learn about the financial benefits of downsizing and make your next move with total confidence!

“Since purchasing our home at Bridge Street we have made many great friends and our lives have changed for the better.”

Since purchasing our home at Bridge Street we have made many great friends and our lives have changed for the better. We have been so busy with social activities and love the camaraderie that comes with living in our community, along with the freedom of traveling without having to worrying about the safety of our home. We are so grateful for our beautiful home and our stress-free lifestyle. We wouldn’t change a thing.

Rob & Jan from Bridge Street

Frequently Asked Questions

Are there exit or deferred management fees?
Are there any other fees?
Can I bequeath my home?
Can I select the home of my choice, on the site of my choice?
Do government subsidies apply?
Do I need to be retired to live in a Hometown Australia community?
How secure is my tenure?
Is their stamp duty payable when I purchase?
What happens when I want to sell my home?

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