The highest sales rate for one village we have experienced in 15 years. LDK took 26 deposits of $5,000 each across the 31 days of August at their Greenways village. 18 sales were for the current village build, with eight sales allocated to the next stage of development. It will be a 340 home village when completed.
The average price was $850,000.
This follows 10 sales in May, 12 in June and 14 in July. That is 60 homes in four months.
Browne says he has been working for 20 years to achieve this vindication of his business model, based on the fact that older Australians are determined to retain control of their lives, and not move into residential aged care.
The uncertainty and vulnerability of COVID no doubt has added to this desire.
Browne tells us LDK’s ‘One Move Promise’ marketing offer has been their most successful tool, plus their simple financial proposition.
LDK has pioneered a membership fee similar to the American country club fee, rather than a DMF.
This amount of $185,000 is paid up front, or $250,000 if deferred until departure. It is not refundable if they are only in the village for a short period.
Membership delivers a concierge support service plus if they need to transfer to the Care Hub (which is a form of low level residential care) there are no extra fees.
The incoming resident pays for their home ($850,000) and when they depart they receive the full $850,000 back, guaranteed within six months. LDK takes all capital gain.
The departing resident has no extra fees such as refurbishment, marketing costs or any other expenses.
Weekly fees are $150 and fixed at that rate for life.
LDK claims they have a conversion rate of 2.4, meaning they convert to a sale just under one in two people who inspect.
Browne’s sales presentation includes the line that the 100% capital gain going to LDK is the reassurance that new residents have that LDK is committed to delivering a great result for residents so word-of-mouth increases demand, and capital gain.
Browne is seeking other village operators who may wish to bring his strategies to their properties.
You can contact him HERE.