As Australians live longer, many older adults are looking for housing that supports a comfortable and connected lifestyle. Two of the most popular choices are retirement villages and land lease communities. Each offers its own mix of costs, benefits, and lifestyle perks.

Retirement villages

Retirement villages are designed for people aged 55 and over who want to live independently in a community with others at a similar life stage. These villages often offer shared facilities like gardens, pools, and community halls.

When you move into a retirement village, you usually pay an entry contribution which is a large upfront fee that gives you the right to live there. You’ll also pay ongoing maintenance fees to cover services like gardening, facility upkeep, and security. When you leave, a deferred management fee (DMF) may apply, which can take a percentage (sometimes up to 35%) of your original payment or the resale value.

These costs can be complex, so it’s important to understand the contract.

Land lease communities

Land lease communities (also called lifestyle villages or over-55 communities) work differently. Residents buy their home but lease the land it’s on. This can mean lower upfront costs and fewer exit fees.

There’s no deferred management fee in most land lease communities, and residents usually keep any profit when selling their home. The regular site fees cover things like roads, lighting, and shared spaces.

This simpler and more predictable financial model appeals to many retirees who want flexibility and transparency.

Centrelink and the Age Pension

Where you live can affect your Centrelink entitlements, including the Age Pension and Rent Assistance.

In retirement villages, if your entry contribution is over a set threshold (currently $258,000), you’re considered a homeowner, and that contribution won’t count as an asset for Age Pension purposes. If it’s below the threshold, you are treated as a non-homeowner and may qualify for Rent Assistance.

In land lease communities, you’re usually treated as a homeowner regardless of what you paid. However, eligible residents may still receive Rent Assistance to help with site fees, even though they’re homeowners.

Access to care

Both options support in-home care through government programs. Retirement villages often have care services integrated or nearby, which can make it easier for residents to remain in their place as their needs change. In land lease communities, residents typically arrange care independently, though support is still available.

Final thoughts

Choosing the right senior living option depends on your financial situation, lifestyle goals, and care needs. Retirement villages may offer more support and structure, while land lease communities provide flexibility and potentially lower costs. Understanding the differences can help you or your loved ones make a confident, informed choice.