Following on from the St Ann’s story, it is worth revisiting the land lease community phenomena. It is fascinating that the Not For Profit sector has not led this affordable housing movement – to our knowledge there are none developing communities under this model.

On paper it delivers on the affordable housing ‘mission’ of most plus significant profits for further work.

See the Gateway Lifestyle chart above. They are delivering homes for an average sale price of $207,000 to $270,000 depending on the state and location. This is two-thirds the price of the cheapest homes or apartments, even in regional areas.

Gateway makes an average of $100,000 development profit, close to 50%, on each new home sale they make. Traditional village developers struggle to make 20% on a $350,000 home, or $70,000.

Another example: Ingenia Lifestyle Communities makes an average of $88,000 on a $275,000 average sale price or 33%.

There are now 70,000 people living in land lease communities, equal to 40% of the entire retirement village resident population. It is a proven model. They are all self-funded into their accommodation without government ‘affordable housing’ subsidies. And the operators retain ownership of the land.

Ideal for Not For Profits and their missions.