Land Lease Communities Offer Smart Investment Opportunities
Solana Lifestyle Resort - Bribie Island
Land Lease Communities are one of Australia's newest and fastest growing property asset classes.
In a world where many investors are looking for alternatives to stocks and bonds, Investment Trusts secured by these Land Lease Communities are an attractive investment option, offering an excellent way to diversify your portfolio.
How Land Lease Communities operate
The title to the land is held by the landowner, who finances, builds, and sells homes to the homeowner.
The houses are owned by the residents, who pay a weekly site rental fee. This fee covers the use and maintenance of all common area amenities, including entry, roads, security, recreational facilities, garden and lawn maintenance to common areas and the front of homes, council rates, water rates and water supply.
What is driving Land Lease Communities?
Land Lease Communities provide a lower cost retirement option, while offering a similar quality of housing available in new housing estates.
Advantages to residents include no stamp duty payable, no ongoing rates, no land tax, no entry & exit fees, together with no make good fees. The weekly site rental fee can also be offset by Government rental assistance for those who receive the Aged Pension.
The secure living environment, quality of facilities, retention of capital gains on sale and co-location with extensive retail and services are also driving their popularity.
Location also plays an essential role in the success of a Land Lease Community. Stockwell has identified these early retirement and downsizing trends, and has selectively chosen locations with proven desirability for the Australian over 50's market.
The 2021 Census indicates that Australia’s ageing population (29% of the entire population aged 55 and over), prefers regional living. In addition, areas with the oldest median ages are all coastal retirement destinations.
There are over 20,500 purpose built lots on the Residential Parks (Manufactured Homes) Register in Queensland. This figure is set to significantly grow, as Australia's ageing population seeks lifestyle, freedom and ease of living in preference to maintaining a larger family home and property.
Solana Lifestyle Resorts
Solana Lifestyle Resorts are Stockwell's thriving over 50's Land Lease Communities.
Bribie Island was the first Solana Lifestyle Resort, which is now sold out and home to over 300 residents. Stockwell has recently announced three other resorts (Agnes Water, Hervey Bay and Mackay’s Northern Beaches), with more locations planned.
Stockwell’s successful track record in delivering retail centres in key regional locations, together with delivering residential solutions for downsizers make this a natural fit for the group.
Co-Invest with Stockwell
Stockwell Property Funds offers people the opportunity to co-invest in a range of stand-alone trusts to deliver risk mitigated income.
There are currently opportunities to co-invest with Stockwell in the expansion of Solana Lifestyle Resorts with our Stockwell Mortgage Income Trust - FM Class (Solana Lifestyle Resorts).
If you're interested in building your investment portfolio to include Australia's fastest growing asset class, talk to the Stockwell Property Funds team or register your interest here.
References
https://www.abs.gov.au/statistics/people/population/regional-population-age-and-sex/2021
https://www.data.qld.gov.au/dataset/residential-parks-manufactured-homes-department-of-communities-housing-and-digital-economy