In our LEADERS SUMMIT presentation, we showcased the number of people who are touched by the retirement village and land lease sectors.
Surprisingly the number is just over 1 million Australians, and accepting that they are all over the age of 40, this represents 9.5% of all people in this age group.
Our argument is that the transaction to buy into a land lease community or retirement village requires the majority of the purchaser’s capital, and so directly affects the wealth they will pass on to their family or friends.
Touching the pocket is a very real meaning of ‘touching’ the family member or friend.
The figures above show that every day of the year 97 people ‘buy in’. Based on 70% being couples, this equates to 62 sales being required every day.
This is not insignificant on two counts: the sheer number of sales leads required and closes, plus the value of the transactions.
On a simple ratio of 10 leads to one sale, 620 leads have to be generated a day.
If each property purchase requires say $450,000, the daily value is $28 million. Over 12 months it is $10.2 billion. In turn, retirement villages and land lease communities release a minimum of $12.7 billion in family homes as people downsize.
The difference, $2.5 billion, is what ageing Australians can add to their retirement funding into later life.
As a sector we need to feed this data back to all levels of government – and the 9.5% of 40+ year old’s who are touched every day.