New pensioners look to land lease communities as superannuation hit bites

With share values attacked by COVID-19, with drops of 30%, everybody’s superannuation nest egg is taking a hit. Property values too.

One unexpected outcome is that you may now be eligible for the aged pension because your ‘assets’ have decreased.

At the same time the pandemic is causing older people to rethink about how vulnerable they are living in their family homes, often with no real support network.

Savvy retirees are jumping at the opportunity to downsize to land lease communities, where pensioners receive rental assistance from the government – think about $90 a week tax free – and supportive neighbours are built in.

Land lease communities are like retirement villages but attract a younger audience who are looking for an active lifestyle – the average age of new residents is in their mid to late 60’s.

It’s a different housing model. You own your own home and rent the land it sits on – so the cost of your home is lower because you are not paying for the land component.

New two bedroom home prices can start from say $220,000 in some regional areas up and down the East Coast. At the top end, homes can cost over $1 million.

They are the fastest growing housing option in the country, with around 400 locations. Here are three operators of LLCs: Lifestyle Communities, Ingenia and Palm Lake.

Or you can search your preferred location at villages.com.au.