Retirement Villages vs Land Lease Communities: What's the Difference?
Quick Answer
Retirement villages: You pay an entry contribution (typically $400,000-$1,500,000+ in Brisbane) for the right to live there, plus ongoing fees of $150-$350 per week. A with a deferred management fee (DMF) of 25-35% deducted when you leave. Offers on-site services, emergency support, and community management.
Land lease communities: You own the home (average $300,000-$1,000,000+) but lease the land. Pay weekly site fees ($150-$350+) with no exit fees. You keep all capital gains when you sell.
Best for: Retirement villages suit those wanting support and peace of mind. Land lease communities suit those wanting ownership and financial control.
What is a Retirement Village in Brisbane?
In most retirement villages across Brisbane, you're not buying a home in the traditional sense. Instead, you pay an entry contribution that gives you the right to live there under a leasehold or licence agreement.
When you leave, a deferred management fee (DMF) is deducted from your exit payment, typically around 30% of your entry contribution if you've lived there for six years or more. Before reaching the cap, it's commonly calculated at 5% per year.
Exit payments in retirement villages are typically made once your unit is resold, which can take time depending on market demand. This is an important consideration when planning your next move or managing finances during the transition.
What you can expect in a Brisbane retirement village:
Community and support: Retirement villages are built around connection and care. You'll find:
On-site management and staff
Organized social activities and clubs
Shared facilities (libraries, craft rooms, pools, gyms)
Emergency call systems and 24/7 support
Many villages offer co-located aged care services
Low-maintenance lifestyle: All grounds maintenance, building repairs, and general upkeep are managed for you. This appeals to people who want to spend their time enjoying life, not maintaining property.
Age requirements: Most retirement villages require residents to be at least 55 years old and no longer working full time. Some villages have minimum age requirements of 60 or 65.
Contract complexity: Retirement village contracts include detailed clauses about entry contributions, ongoing fees, capital gain sharing, and exit entitlements. This is where independent retirement community guidance becomes valuable. Understanding your contract before you commit helps avoid surprises down the track.
Who retirement villages suit: People who value a strong sense of community, appreciate having services and support built in, and prefer the reassurance of professional management.
What is a Land Lease Community in Brisbane?
In a land lease community (also called an over 50s lifestyle community), you own the home but lease the land it sits on. You pay a weekly or fortnightly site fee, which covers use of shared facilities, community maintenance, and often utilities.
There's no DMF, and when you sell, you keep any capital gain on your home. However, most land lease agreements require you to get site operator approval before selling, though this is typically straightforward when selling to another eligible buyer.
What you can expect in a Brisbane land lease community:
True home ownership: You own the physical structure and can modify, renovate, or sell it as you choose (within community guidelines). This gives you more financial control and flexibility.
Ongoing site fees: These fees cover maintenance of communal areas, amenities like pools and clubhouses, and often services like water and waste management. Age Pension recipients may be eligible for Commonwealth Rent Assistance, which can reduce site fees by around $60 per week.
Age requirements: Most land lease communities welcome residents aged 50 or 55 and over, typically with fewer restrictions than retirement villages.
Lifestyle focus: Land lease communities in Brisbane tend to be pet-friendly, social, and activity-oriented. They're designed for independent, active people who want community connection without giving up autonomy.
Less support infrastructure: Unlike retirement villages, land lease communities typically don't offer on-site aged care, emergency call systems, or coordinated support services. You're managing your own home and lifestyle more independently.
Who land lease communities suit: People who want to retain ownership of their home, value financial flexibility, and are comfortable managing things more independently.
How Much Does Each Option Cost in Brisbane?
Retirement Village Costs:
Entry contribution: $400,000 - $1,000,000+ (varies by location and unit size)
Ongoing fees: $150 - $350+ per week (covers maintenance, services, amenities)
DMF on exit: Typically 30% of entry contribution after 6 years (around $130,000 on a median-priced unit)
Capital gains: Usually shared with the operator (often 50/50), though some contracts return only the original contribution with no capital gain passed on at all
Exit payment timing: Paid once your unit is resold, which can take several months depending on market conditions
Land Lease Community Costs:
Home purchase: $300,000 - $1,000,000+ (you own it outright)
Site fees: $150 - $350+ per week (covers land lease, facilities, maintenance)
Exit fees: None
Capital gains: You keep 100%
Selling: Requires site operator approval, though this is typically straightforward when selling to another eligible buyer
What are the Key Differences Between Retirement Villages and Land Lease Communities?
Ownership Structure:
Retirement village: You pay for the right to occupy. The operator owns the building and land.
Land lease community: You own your home. The operator owns the land.
Financial Exit:
Retirement village: DMF deducted from your exit payment (typically 25-35%). Some contracts return only your original contribution with no capital gain. Exit payment made once your unit is resold.
Land lease community: No exit fees. You keep all sale proceeds. Requires operator approval to sell, but this is typically straightforward.
Services and Support:
Retirement village: On-site staff, emergency systems, social coordinators, often proximity to aged care
Land lease community: Amenities and social activities, but less structured support
Regulatory Framework:
Retirement villages: Governed by the Retirement Villages Act 1999 (Qld)
Land lease communities: Governed by the Manufactured Homes (Residential Parks) Act 2003 (Qld) (note: while the legislation uses "manufactured homes," most providers now refer to these as land lease or over 50s lifestyle communities)
Flexibility:
Retirement village: More structured, with rules around modifications and use
Land lease community: Greater flexibility as you own your home
Which Brisbane Retirement Living Option is Right for You?
The best choice depends on what matters most to you at this stage of life.
Consider a retirement village if you:
Want peace of mind through built-in support and services
Value a structured, social community environment
Prefer low-maintenance living with everything managed for you
Are planning ahead for potential aged care needs
Don't mind sharing capital gains in exchange for services
Consider a land lease community if you:
Want to retain full ownership and control of your home
Financial flexibility and keeping capital gains matters to you
Are comfortable managing your own property and affairs
Are looking for an active, independent lifestyle with social opportunities
Want to potentially qualify for rent assistance
Neither option is inherently better. The right choice comes down to your lifestyle preferences, financial goals, and what you want this next chapter to look and feel like.
Common Questions About Retirement Villages and Land Lease Communities in Brisbane
Can I afford a retirement village or land lease community in Brisbane?
Both options can be more affordable than traditional homes in many Brisbane suburbs. Land lease communities typically require lower upfront costs, while retirement villages may offer better value if you prioritise services and support.
What happens to my money in a retirement village?
Your entry contribution is held by the operator. When you leave, you receive your contribution back minus the DMF and any agreed share of capital loss. Exit payments are typically made within a set timeframe after your unit is resold.
Can I rent out my home in a land lease community?
This depends on the community's rules. Some allow it with approval, others don't. Always check the site agreement before purchasing.
What if I need aged care later?
Many retirement villages have co-located aged care facilities, making transitions easier. Land lease communities don't typically offer this, so you'd need to move to an aged care facility when required.
Are there hidden fees I should know about?
Both models have ongoing costs beyond the obvious ones. Independent advice helps you understand the total cost of ownership over 5, 10, or 15+ years.
Understanding Retirement Village Contracts and Land Lease Agreements
Whether you're leaning toward a retirement village or land lease community, the contract is where the details matter most.
Retirement village contracts can include complex clauses around:
Entry contributions and how they're calculated
Ongoing fees and how often they increase
Capital gain sharing arrangements
Exit entitlements and timeframes
Maintenance responsibilities
Rules around modifications and visitors
Land lease agreements outline:
Site fees and fee increase mechanisms
Community rules and pet policies
Your rights as a homeowner
Dispute resolution processes
Exit procedures
Independent retirement community guidance helps you understand what you're signing, compare different communities fairly, and make decisions based on facts rather than sales pitches.
Downsizing in Brisbane: Getting the Support You Need
Choosing between a retirement village and land lease community is just one part of your downsizing journey in Brisbane. You might also be thinking about:
Which Brisbane suburbs suit your lifestyle and budget
Whether to sell your current home first or secure your next home before selling
How to find the right agent and negotiate the best terms
What questions to ask when visiting retirement communities
How to compare contracts from different operators
At Hazel & Fred, we provide independent downsizing advice and support across all of Brisbane. We walk alongside you through the decisions, paperwork, and planning, helping you move forward with clarity and confidence.
We don't sell property or earn commissions from operators. Our advice is based purely on what's right for you.
Frequently Asked Questions
Q: What's the main difference between a retirement village and a land lease community? A: In a retirement village, you pay for the right to live there with a deferred fee on exit. In a land lease community, you own your home but lease the land, with no exit fees.
Q: How much does a retirement village cost in Brisbane? A: Entry contributions typically range from $400,000 to $1,500,000+, with ongoing fees of $150-$350+ per week and a DMF of around 30% on exit.
Q: Do I own my home in a land lease community? A: Yes, you own the physical home and can sell it, but you lease the land it sits on.
Q: Can I get government assistance for land lease site fees? A: Yes, Age Pension recipients may qualify for Commonwealth Rent Assistance of around $60+ per week.
Q: What age do I need to be to move into a retirement village? A: Most Brisbane retirement villages require residents to be at least 55 years old and no longer working full time.
Q: Which option is better financially? A: It depends on your situation. Land lease communities allow you to keep capital gains with no exit fees. Retirement villages deduct a DMF but often provide more services. Independent advice helps you calculate the true cost over time.
Ready to Explore Your Retirement Living Options in Brisbane?
If you're considering a retirement village, land lease community, or simply downsizing to a more manageable home in Brisbane, we can help you:
Compare your options objectively
Understand contract differences in plain English
Visit communities with someone who knows what to look for
Make decisions that feel right for your situation
No pressure, no sales agenda. Just calm, independent guidance from someone who understands this stage of life.
Get in touch for a simple, no-obligation conversation. We'll help you make sense of the options so you can move forward with confidence.