Lesley and Les Dollman are among the many Australian retirees who have secured their financial future by buying an affordable home in a land lease community.
For the last two and half years, the Dollmans have been living in Hometown Australia’s Sunrise community, located in Port Stephens north of Sydney.
The Dollmans decided to investigate moving into the community after Mr. Dollman had a chance meeting with a Sunrise resident at a cafe.
Soon after, the couple sold their three-bedroom family home in Port Stephens, and purchased a new two-bedroom home at Sunrise for around half the price.
This equity release allowed Mr. Dollman to sell his kitchen installation business and bring forward his retirement by three years.
What’s more, the Dollmans saved a further $20,000 due to the fact the land lease home did not attract stamp duty.
“Financially, it was probably the best move we ever made,” said Mrs. Dollman.
“Relocating to [Sunrise] has definitely given us the freedom to start our retirement, and to be able to do a lot more in retirement.”
FIND OUT MORE: Hometown Australia homes in the Port Stephens region
Moving into a Hometown Australia community has helped the Dollmans to save money for travel, including swimming with whale sharks in Western Australia.
How land lease living is an affordable alternative
Many Hometown Australia land lease community residents have followed the same financial journey as the Dollmans.
Land lease communities work on a model where homeowners purchase the home - and then enjoy a long-term and secure lease over the land on which it stands.
As no actual land is changing hands, the home’s cost is usually far less than comparable homes in the surrounding area.
This financial benefit is extended by the fact no stamp duty or council rates, and no exit fees, are payable. Residents also retain all capital gains when they decide to sell their home.
Residents pay a weekly site fee, however if the resident has a social security benefit (such as the aged pension) then this can be offset with Commonwealth Rental Assistance.
Land lease homes are playing an increasingly important role responding to the affordability challenges faced by Australians aged over 50.
Australia’s affordability challenge for over 50s
Recent studies have illustrated the scale of this challenge.
According to a 2019 Australian Housing and Urban Research Institute report, by 2031 only one in four Australians aged 55-64 will be outright homeowners, down from one in two in 2016.
Since this report has been prepared, the issue with housing affordability has worsened.
CoreLogic’s Hedonic Home Value Index for July 2024 shows that regional property prices have increased by 52%, and capital city prices by 33%, since the onset of COVID-19.
This means more Australians are entering retirement with the need to find affordable housing, so they can enjoy retirement without a mortgage or paying rent. Land lease communities are filling this void.
Hometown Australia homes
At the Sunrise community, existing homes are currently available for $700-900,000.
Street inside Sunrise
There are more than 60 Hometown Australia communities across New South Wales, Queensland and South Australia, with many of these communities in retirement hotspots such as the Sunshine Coast, Gold Coast and Port Stephens.
Typically, these homes are available for less than the price of homes in surrounding suburbs.
FIND OUT MORE: Hometown Australia homes for sale across Australia
Port Stephens is a popular and lifestyle location, including at Shoal Bay (pictured).
Life at Sunrise
The Dollmans say they are using their secure financial position to enjoy the best of life, both within and outside the Sunrise community.
Within Sunrise, Mr. Dollman is a keen tennis player against some of the other 190 community residents. He has also taken on the mantle of driving the community bus to allow himself, and fellow residents, to enjoy a range of activities and events in the Hunter Valley.
Other community facilities include a clubhouse, indoor and outdoor swimming pool, gym, bowling green, and vegetable garden.
Outdoor pool at Sunrise community.
The Dollmans also make use of the available caravan parking spaces, and Sunrise’s proximity to the upgraded Pacific Highway, to undertake ‘grey nomad’ style trips around Australia.
“If we went away from our previous home, the thieves would know we’re on the road because the caravan has gone missing from the driveway,” said Mr. Dollman.
“Here, it’s a gated community, so there is no issue at all.
“We’ve been away for eight months and not had a single problem.”
Bowling green at Sunrise community.
The Dollmans spent this eight-month period circumnavigating Australia in their caravan, including stopping off to cage dive with great white sharks at Port Lincoln in South Australia and swim with whale sharks at Exmouth in Western Australia.
Closer to home, Mrs. Dollman is a keen diver around the Port Stephens region, while Mr. Dollman is more likely to enjoy snorkeling
The Dollmans at their caravan parking spot at Sunrise.
FIND OUT MORE: Learn about the Sunrise community
About Hometown Australia
Hometown Australia is dedicated to giving Australians over 50 years of age the lifestyle and facilities they deserve. Hometown Australia has a wide range of new land lease communities and affordable home options available across Australia. To find out more, go to the Hometown Australia website.
This content has been prepared by Downsizing.com.au on behalf of Hometown Australia
