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- 6 days ago
- 5 min read
Searching online for answers? Here's what you should know before making one of the biggest financial and lifestyle decisions of your life.
If you've searched "What are the disadvantages of a land lease community?", you're not alone.
It's one of the most common questions people ask when exploring a different way of home ownership.
Google's AI Overview doesn't exactly paint a reassuring picture. It warns about increasing site fees, questions resale values, raises concerns about ownership and even suggests communities can close.
They're important questions, and they're exactly the questions you should be asking. But here's where it gets confusing....
Many of the articles and search results online combine information about caravan parks, manufactured home estates, retirement villages and modern land lease communities as though they're all the same.
They're not.
Each operates under different legislation, offers different ownership structures and suits different people.
Rather than asking whether land lease communities are "good" or "bad", a better question is this:
How does a modern land lease community actually work, and is it the right choice for me?
Let's unpack the most common concerns.
Do you actually own your home?
The short answer is yes.
One of the biggest misconceptions about land lease communities is that homeowners don't own anything.
In a modern land lease community like ReGen Living by Oliver Hume, you purchase and own your home. What you lease is the land beneath it through a long-term Residential Site Agreement.
This differs from traditional freehold ownership, where you purchase both the home and the land. Because you're not buying the land component, the purchase price is often lower than an equivalent house and land package.
Understanding that distinction is important, because many online discussions unintentionally blur the lines between rental accommodation, caravan parks and purpose-built land lease communities.
Do site fees keep increasing?
This is probably the question we hear most often.
The reality is that site payments are part of the land lease model. They contribute to the ongoing management and upkeep of the community, shared spaces and amenities.
Like council rates, strata levies and insurance premiums, they may be reviewed over time. The important question isn't whether they exist, it's how they're managed.
Every operator should be able to clearly explain:
How often site payments are reviewed
How homeowners are notified
What options are available to provide certainty.
At ReGen Living, weekly site payments are reviewed annually in accordance with the Residential Site Agreement, with advance notice provided to homeowners.
For eligible homeowners, Commonwealth Rent Assistance may also help reduce ongoing living expenses.
When comparing housing options, it's worth looking beyond one line item. Traditional home ownership often comes with costs such as stamp duty, council rates, ongoing property maintenance and, in some cases, body corporate fees. Different ownership models simply structure those costs differently.
What happens if the operator changes ownership?
Another common concern is what happens if the company behind the community changes.
It's a fair question.
A change in ownership doesn't automatically change the legal agreement you have in place. Residential Site Agreements continue to provide rights and protections for homeowners, regardless of who owns the community.
It's also worth considering the experience and reputation of the operator before purchasing.
ReGen Living is backed by Oliver Hume, one of Australia's most established residential property companies, with more than 70 years' experience creating communities across the country. While no company's history guarantees the future, choosing an experienced operator is one of the many factors buyers should consider.
Can a land lease community close?
You may have seen articles suggesting communities can close, forcing residents to relocate.
In many cases, these articles refer to older caravan parks or different housing models rather than purpose-built land lease communities.
Modern land lease communities in Victoria operate under legislation that provides protections for homeowners through Residential Site Agreements.
That's why it's important to understand the specific community you're researching rather than relying on broad statements found online.
If you're comparing communities, ask what legislation applies, what legal protections exist and how the operator explains those protections.
What about resale value?
Like any property, resale value depends on a range of factors.
Location, buyer demand, the quality of the home, presentation, community amenities and broader market conditions all play a role.
No reputable operator can honestly promise future capital growth. And equally, no one can accurately predict that a home will perform worse than another property simply because it's in a land lease community.
Instead of looking for guarantees, consider the fundamentals.
Is the community in a desirable location?
Are the homes well designed?
Is there ongoing demand from buyers seeking this lifestyle?
These are the same questions many people ask when purchasing any property.
Why are more Australians considering land lease living?
For many people, the appeal isn't about compromise, it's about choice.
By purchasing the home rather than both the home and the land, buyers can often enter the market at a lower price point while still enjoying a high-quality, purpose-built home.
Depending on the community, there may also be financial advantages, including no stamp duty on the home purchase, no council rates and no deferred management fees.
Combined with thoughtfully designed homes and shared community amenities, many people see land lease living as a way to free up capital without compromising on lifestyle.
For active over-55s, it's often less about downsizing and more about living differently.
Seven questions worth asking before choosing any land lease community
Every community is different, which is why asking the right questions matters.
Before making a decision, ask:
Who owns and manages the community?
How does the Residential Site Agreement work?
How are site payments reviewed?
Are there any deferred management or exit fees?
What protections exist under the legislation?
What facilities and services are included?
What does the resale process look like?
A reputable operator should welcome these conversations and provide clear, transparent answers.
The bottom line
Land lease communities aren't the right choice for everyone.
If your priority is owning both the home and the land, a traditional freehold property may be the better fit.
If you're looking for a housing model that combines home ownership with a lower entry price, purpose-built homes and a professionally managed community, a land lease community may be worth exploring.
The key is understanding the model, not relying on headlines or generalisations.
Visit different communities. Ask questions. Read the agreements. Compare operators.
The more informed you are, the more confident you'll feel in making the decision that's right for you.
If you're curious about how a modern land lease community works, we invite you to visit the display homes at ReGen Living Waurn Ponds. Seeing the homes, exploring the facilities and speaking with our team often answers questions that simply can't be resolved through an online search.
Further reading
To help you continue your research, these independent resources explain the legal framework and assistance available for land lease communities in Victoria:
