A New Lease on Life
Financial Benefits
As you consider what your next chapter of life looks like, it’s important to remember that it’s more than just a financial decision – it’s about finding a lifestyle that suits your needs. Hometown Australia supports you every step of the way, from understanding the financial benefits to exploring our vibrant communities.
With no stamp duty payable, possible Government subsidy and the Downsizer Contribution Incentive it has never been a better time to downsize to a Hometown Australia community!
Understanding the financial aspects of moving into a land lease community is key to making the best decision for your situation. While it can feel overwhelming, we’ve answered some frequently asked questions to help explain the financial benefits and make the process easier to navigate.
What are the Financial Benefits of Living in a Land Lease Community?
Hometown Australia’s land lease communities provide true value for money, without the high entry and exit fees often associated with other retirement living options. Financial benefits include:
- No Stamp Duty: There is no stamp duty payable on the purchase of your home, saving you thousands of dollars to spend on the lifestyle you deserve.
- No Exit Fees or Deferred Management Fees*: When you sell your home, you won’t pay any exit fees unlike retirement villages where you can be charged exit fees or deferred management fees.
- No Council Rates: There are no council rates payable.
- Retain Capital Gain: You also retain 100% of your capital gain as a cash profit when you sell your home. In many retirement living options, your agreement may force you to share your capital gain with the retirement village management. Living in a Hometown Australia community means that more money stays in your pocket.
- Owning Your Home: You own your home and as a result are not liable to make any refurbishment improvements or contribute to these when you sell, which is usually the case in Retirement Village living.
- Government Subsidies: You may be eligible to claim Commonwealth Rental Assistance.
Read more about the financial benefits of downsizing
Explore common questions around selling your family home and transitioning to a lifestyle-focused...
Learn about the financial benefits of downsizing and make your next move with total confidence!
Learn about the financial benefits of downsizing and make your next move with total confidence!
Explore common questions around selling your family home and transitioning to a lifestyle-focused...
Learn about the financial benefits of downsizing and make your next move with total confidence!
Explore common questions around selling your family home and transitioning to a lifestyle-focused...
Do I Need to Pay Stamp Duty When I Move into a Hometown Australia Community?
No, you don’t. When you move into a Hometown Australia community the Government recognises you as a ‘renter’ as you are leasing the land on which your home stands. This means that you are not required to pay Stamp Duty on your home leaving you with more money to save for retirement.
Many over 50s put off downsizing due the thought of needing to pay stamp duty on their new home, which depending on the price could be as much as $72,000, which is a big hit to your home-buying budget and retirement funds.
Are There Council Rates Associated with Living in a Land Lease Community?
No, there are no council rates payable by the homeowner. When you buy a Hometown Australia home you aren’t responsible for council rates. By eliminating this yearly expense, you’re left with more money to spend on entertainment, dining, travel, and more.
Am I Eligible for Rental Assistance Living in a Hometown Australia Community?
Yes, when you own your home in a land lease community the Government considers you as a ‘renter.’ You may be eligible for Rental Assistance which will subsidise the site rent you pay to live in the community. Whilst the site rent will vary by community the subsidy is determined by two factors: the rent you pay and your eligibility with Centrelink.
Rental Assistance subsidies may be available through Centrelink to individuals who require financial assistance due to low income and rent in the private market. To learn more about Rental Assistance and if you would be eligible please visit the Centrelink website for further information.
Is There a Government Incentive for Seniors Downsizing?
Known as the ‘Downsizer Super Contribution’, this program allows you to put $300,000 from the sale of your home into your superannuation fund. This contribution is non-concessional, meaning it comes out of your after-tax income and won’t be taxed again once it’s added to your super fund. One of the key benefits of this scheme is that the downsizer contribution doesn’t count towards your contribution cap — making it a smart way to invest the equity you’ve gained by selling the family home. For more information visit the ATO website.
Frequently Asked Questions
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Frequently Asked Questions
When exploring your option of moving into a land lease community, it is only normal to have many questions!
