25.7% of Australians aged 65 and over have a disposable income that is less than 50% of the median household, the third highest rate among OECD nations following Korea and Latvia.
In contrast, the Czech Republic, Denmark, France, Luxembourg, the Netherlands and the Slovak Republic all have rates between 3 and 4%.
This lack of cash has left many priced out of traditional retirement village product – but able to buy into the land lease model according to Ingenia CEO Simon Owen.
“What really underpins our model is that we’re not so much selling a home; we talk to our residents about ‘what would your life look like if you had an extra couple of hundred thousands dollars in the bank to support the pension?’” he said.
Up to 90% of Ingenia’s home owners are pensioners.
Another selling point for LLCs.