Land lease is affordable accommodation, particularly for pensioners and single men and women.
Part of the affordability equation is that Centrelink subsidises the rent component for these pensioners.
Importantly, LLCs deliver the security and community that make retirement villages so desirable.
It is also proving to be highly profitable to operators. Thus, the question is: why aren’t Not For Profits engaging with this sector?
And while the large-scale private operators aim for 150 to 400 homes on a site, there is no reason why LLCs can’t be just 50 homes, appropriate for Not For Profits that have smaller blocks in regional areas.
The leading private LLC operators are building new two-bed homes on cement slabs with steel frames and tin roofs, and selling them for $250,000, while making a 30% development profit.
A great outcome for all while also delivering on mission for Not For Profits.