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24 May 2024

Navigating the differences: Land lease communities vs. traditional homeownership

Have a few too many spare bedrooms? Feeling overwhelmed by the cost and time spent maintaining the family home? It’s understandable that as you’re entering the next phase of your life, you’re thinking about downsizing. Whether your children have grown up and moved out, or you’re just over the never-ending gardening, lower-maintenance homes are the perfect next step.

If you’re weighing up between Hometown Australia’s over 50’s* lifestyle homes versus downsizing through traditional homeownership, we’re here to help. In this blog, we’ll explain what a land lease community is, and compare the pros and cons of land leasing versus traditional homeownership. Everything you need to make an informed decision awaits!

What is a land lease Community?

In essence, land leasing is where you buy a home and lease the land it sits on, as part of a Residential Site Agreement. When you sign the Residential Site Agreement, you lease the land for an extended duration and get access to all of the community amenities.

Perfect for downsizing or a lifestyle change, a land lease community is a group of land-leased homes that share community amenities like pools, gyms and more. Hometown Australia’s land lease communities are made up of like-minded people over the age of 50*, providing wonderful opportunities for socialising and amenities to support a physically active lifestyle.

Comparing land leases vs traditional homeownership

First and foremost, Hometown Australia’s land lease communities are not retirement villages. With this distinction in mind, you might be wondering what makes a land lease a better option than traditional homeownership. Let’s get into the unique benefits of land leasing living:

Stamp duty

When you buy a home from Hometown Australia as part of land lease living, there’s no stamp duty payable. This is usually a big boost to your purchasing budget, giving you more money to spend on the lifestyle you seek. This is a big difference from traditional homeownership. The Property Council of Australia suggests you can spend up to $75,000 in stamp duty and other costs when you downsize your home through traditional land and property purchasing.

Council rates

Since you don’t own the land your Hometown home sits on, you naturally aren’t responsible for any land-based costs — like council rates. Cutting down on this yearly expense, you’ll have more money to spend on travel, dining, entertainment and more. Council rates are increasing all the time, with the average residential rates in NSW increasing between 6.35% and 45.78% in one year. Depending on your property value, a land lease home might save you thousands of dollars each year.

Government subsidy

While you do own your home when you buy from Hometown, the fact that you’re living in a ‘moveable home’ and leasing the land means you’re actually still ‘renting’ in the eyes of the government. If you receive any government pension, you may be eligible for rental assistance, which may be paid towards the cost of your site fees. Traditional homeownership doesn’t grant you any form of rental subsidy, making you responsible for more of your costs.

Ongoing fees

When you move into a Hometown Australia land lease community, you’ll pay a site fee per annum. This can be offset through Government subsidies, reducing the hit to your budget. Downsizing into an apartment, townhouse or unit the traditional way incurs all sorts of ongoing fees. Owners corporation and strata fees are between $2,000 and $4,000 per year, and aren’t eligible for subsidies. If you’re keen on an apartment- or townhouse-sized home, land leasing living can give you the downsize you want without the strata fees.

Beyond the budget

From stamp duty and fees to government subsidies, there’s a multitude of ways that land lease communities will save you money. Beyond the financial reasons to downsize with Hometown, there’s also the lifestyle aspect to consider.

Our communities are vibrant, and packed with amenities that make your downtime all the more enjoyable. Make friends with shared interests, join a club, take up new hobbies, and more. Whether you’re after a cinema to screen your favourite films, a pickleball court to get active, or a sports bar to chat about the big game, Hometown has a community to support your lifestyle.

Unlike apartment buildings or housing estates, Hometown fosters that true neighbourhood feeling with events, competitions, and meet-ups. Traditional homeownership gives you bricks and mortar, but Hometown Australia gives you a community. 


Discover the Hometown difference for yourself

Perfect for over 50s*, whether you’re working, semi-retired, or retired, Hometown Australia’s land lease communities provide so much more than traditional ownership. Whether you’re keen to stay in the same neighbourhood you love, or you’re excited to make a seachange (or even a treechange!), Hometown has a community ready to welcome you. We have land leasing communities in Queensland, New South Wales and South Australia — and we just keep growing! Save money, meet like-minded people, and make the most of your downsize journey with Hometown.

Discover the range of communities here and get in touch with us today to find out more!

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New and pre-loved Homes

There are many ways to live in a Hometown community

New HomesYou have the option to customise your home and make it yours, with a choice of facades, colours and finishes.
New HomesYou have the option to customise your home and make it yours, with a choice of facades, colours and finishes.
New HomesYou have the option to customise your home and make it yours, with a choice of facades, colours and finishes.
New HomesYou have the option to customise your home and make it yours, with a choice of facades, colours and finishes.

The benefits of Land Lease compared to a Retirement Village

Find out the benefits
iconNo stamp duty
iconRetain capital gains
iconNo council rates
iconNo exit fees
A new way of living