Formerly ANZ Health’s Director for Corporate & Institutional in NSW & QLD, Andrew Ralph, is tapping into the growing demand for land lease communities, releasing the sector’s first home loan product targeting future retirees looking to move into a community now instead of when they retire.
Andrew (pictured above) departed the bank in December to fund the venture himself with the help of family and friends after touring manufactured housing estates in the US and seeing an opportunity in the post-COVID world for a market.
Land lease loans have so far been untested in the market with the big banks unwilling to get behind them, but Andrew sees potential in the market.
With 2,500 land lease homes being built a year, he estimates the loans could expand the market by 10% – with room for the loans to grow to $100 million within four years.
With loan sizes ranging from a minimum of $20,000 to a maximum of $400,000 – LLHL is looking at the younger land lease customer who still has some years left in the workforce, but wants the home and the lifestyle now.
Land Lease Home Loans is offering two products:
- The Lifestyle PLUS land lease home loan provides a traditional Principal and Interest loan, borrowing up to 40% of the home’s purchase price.
- The Lifestyle CAPITAL land lease home loan is a reverse mortgage available to those over 65 years, which allows the customer to borrow using the equity in their home but not making any repayments until they sell or leave the home or, in most cases, move into residential aged care.