Hundreds of land lease properties under construction for over 60s in Sydney
A large land lease development is underway in Sydney's north-west, with experts saying the model could solve the housing crisis.
The 12-hectare construction site in Gables, near Box Hill, will accommodate 231 homes for an over-60s community, as an alternative to retirement home living.
The option means residents own their home but rent the land so they don't pay stamp duty or exit fees.
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A large land lease development is underway in Sydney's Northwest, with experts saying the model could provide a solution to the housing crisis. Nine
"When you sell you get to keep 100 per cent of the capital gains, Stocklands Project Director Ken Franklin said.
"The financial model we know is something that works really well for them."
It is the first New South Wales project by Property development company Stockland, who have 20 land-lease communities across Australia, with most of them in Queensland.
Residents are slated to move in this time next year.
Property experts say the method is currently only used for retirement villages, but it could provide a solution to the housing crisis if there is enough land available in councils willing to accommodate.
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Property experts say the method is currently only used for retirement villages, but it could provide a solution to the housing crisis Nine
A NSW Government review of the model called for better protections for land lease communities, as there is no legislation that stops the rent from going up.
"There are challenges in the cost of land, in zoning, in red tape," Managing Director of Ray White Commercial Western Sydney Peter Vines] said.
"We need more money looking into this space, patient capital that's happy to take a slower return on their money."
Development giant Mirvac has just finalised a $600 million deal to buy 27 land lease communities around the country.
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