How Are Land Lease Homes and Communities Financed in Australia?
Accommodation
Land lease · Park homes · Site agreements · Community finance
You own the home but not the land under it. That one fact decides how you pay for it, what you sign, what happens to your pension and super after you sell, how easily the home resells, what happens if you later move into care, and how the community itself is funded.
Quick Answer
Usually no. A standard home loan cannot be secured against a land lease home, because you own the home, not the land. As at 24 September 2026, Land Lease Home Loans is not taking new applications, so buyers use sale proceeds, a bridging loan on the home they are selling or cash.
Also called: residential land lease community, lifestyle community, park home community. A land lease community is not a retirement village; retirement villages run under separate retirement village laws with different contracts and fees.
Start with whether the home can be financed, then check the contract and ownership documents, the lifetime cost and resale value, Centrelink, super and exit risk.
Jump to how lenders value the community and how unsold chattel homes can be funded.
Why can't you get a normal home loan on a land lease home?
A normal home loan is secured by a registered mortgage over land, and in a land lease community you own the home while the operator owns the land, so there is no land title in your name for a lender to take.
What is a land lease community?
A land lease community is a residential estate, often for over 50s, where you buy a manufactured or relocatable home and rent the site it sits on from the operator under a site agreement, paying a regular site fee. In NSW, the homeowner owns the home and leases the land from the operator (NSW Government, Residential land lease communities, updated 22 September 2025). Victoria describes a site agreement as being for someone who owns a movable dwelling and rents a site for it (Consumer Affairs Victoria, Site agreements, updated 6 July 2026). A park home in a residential park works the same way.
The home is usually a chattel: movable, and not part of the land it sits on. Whether a particular dwelling is a chattel or fixture matters for every form of finance on this page.
| Item | Resident (home owner) | Operator |
|---|---|---|
| Land title | No | Yes |
| The home | Yes, usually as a chattel | Only unsold homes it still owns |
| Site agreement | Holds it as a contract, not a title | Grants it |
| Site fee | Pays it | Receives it as income |
| What a lender can take as security | Other property the resident owns, or the proceeds of selling it | The land title, site fee income, approved vacant sites and homes it owns |
Because the resident is leasing land rather than owning it, the resident's funding comes from assets outside the community, while the operator's funding is a question of park and accommodation finance and development funding. This page covers the resident first, then the operator and developer.
Can you get a mortgage or loan on a land lease or park home in 2026?
Land Lease Home Loans (Australian Credit Licence 546781) states on its website that it is no longer accepting new applications for a loan secured by a land lease home (read 24 September 2026).
For a new buyer, the practical issue is not the label on the home but the security a lender can enforce. A standard mortgage lender usually wants a registered mortgage over land, while a land lease or park home is usually a chattel on a rented site. Unless a lender is specifically prepared to lend against the dwelling as personal property, the finance has to come from somewhere else, such as another property you own, your sale proceeds or cash.
What a mortgage lender needs, and a land lease home does not give it:
- A registered mortgage over land
- A title search showing the borrower as owner
- A valuation based on comparable freehold sales
- Control over the sale if the loan goes wrong
From the Switchboard desk, indicative only.
Basis: a Switchboard desk check of the resident-side market, as of 24 September 2026.
- On the resident side, the routes we currently see are sale proceeds, a bridging loan secured on another property, equity released from other freehold property, or cash. A reverse mortgage against the land lease home itself is not a route we have been able to use, because those loans are secured on real property the borrower owns.
Indicative observations from files we have worked on, not a quote, not an offer and not a rate you will be approved at. Pricing depends on the lender, the security, the stage and the exit, and changes often.
Any loan on the home itself would be a security interest over goods, not a mortgage over land; that is the same registration question operators face, covered in how developers fund chattel homes. Where the buyer has freehold property elsewhere, there are ways of bridging without a bank.
How do buyers pay for a land lease home if the home itself cannot be mortgaged?
For new buyers in 2026, the practical funding routes are cash from selling another property, bridging finance secured against the property being sold, equity released from another property you own, or cash already available. The land lease home itself is not the mortgage security in those structures.
| Route | Is the land lease home the security? | What secures it | Who it suits | The catch |
|---|---|---|---|---|
| Sell first, pay cash | No | Nothing, the sale funds it | Buyers who can wait or rent in between | Timing: the home you want may sell first |
| Bridging loan on the home you are selling | No | The home you are selling | Buyers who must secure the new home before selling | Interest builds until the sale; the sale has to happen inside the term |
| Borrow against another property you own | No | That other property | Owners of an investment or holiday property | Needs serviceability or a higher cost lender |
| Chattel loan secured on the land lease home itself | Yes, as goods, not land | The home | No new borrowers in 2026 | The specialist lender states it is no longer accepting new applications (read 24 September 2026) |
| Reverse mortgage | Not accepted | Real property the borrower owns | Owners of freehold real property | Generally unavailable on a land lease home, because there is no land title |
| Home Equity Access Scheme | Not accepted | Real estate you own in Australia | Pensioners with freehold real estate, including an investment property | Services Australia states land lease communities cannot be used as security because they do not provide land ownership |
| Unsecured personal loan | No | Nothing | Small top-ups only | Amount and rate follow your income and credit, not the home |
Sources: Home Equity Access Scheme row: Services Australia, What you can use as security for a loan under the Home Equity Access Scheme, last updated 30 June 2025, read 24 September 2026. Specialist lender row: Land Lease Home Loans website, read 24 September 2026. Other rows: Switchboard desk observations, September 2026, indicative.
Other property you own can also be drawn on through equity release, and the route changes again if you are self-employed and buying first.
What should you check before signing for a land lease home?
Check the home purchase contract and the site agreement as two separate commitments, then test the site fee, exit and resale rules against the life you may actually have in five or ten years. The finance question is only one part of the decision.
| Question | Why it matters | Who should confirm it |
|---|---|---|
| Is the dwelling purchase contract separate from the site agreement? | Buying the home does not itself give you ownership of the land. In Victoria, Consumer Affairs Victoria expressly treats the dwelling purchase and the Part 4A site agreement as separate agreements. | Your solicitor or conveyancer |
| What is the site fee today, and exactly how can it rise? | A low purchase price can be offset by years of site fees. Check the formula, notice period, review frequency and any special levies. | Your solicitor, using the agreement and state rules |
| What do I pay when I leave? | Do not rely on a brochure saying there are no exit fees. Ask about deferred management charges, selling commission, voluntary sharing arrangements, deferred site fees and any amount linked to the resale price. | Your solicitor |
| Can I choose my own selling agent? | In NSW, Victoria and WA there are protections against an operator forcing or obstructing the sale, but the exact process differs by state. | Your solicitor and the relevant state regulator guidance |
| What happens if I move into aged care or die before the home sells? | The home may still need to be marketed and site fees may continue while it remains on the site. Estate and care rules differ by state and by agreement. | Your solicitor, Services Australia and the operator |
| What happens if the park is sold or redeveloped? | Ownership of the community can change without you selling your dwelling. Your rights depend on the state law and the agreement. | Your solicitor |
| Does the budget still work if the home takes a year to sell? | This is the stress test many buyers miss. You may be paying a new accommodation cost, aged-care cost or another purchase while site fees on the unsold home continue. | Your financial adviser and broker |
Victoria now requires new Part 4A site agreements from 1 July 2026 to use the standard form and requires prospective site tenants to receive detailed information about rent, increases, services, sale arrangements and charges that apply when they leave (Consumer Affairs Victoria, site owners' rights and responsibilities, read 24 September 2026). South Australia requires site-only buyers to receive the disclosure statement, site condition report, park rules and information about selling or relocating the dwelling at least 14 days before signing (SA Government, Residential park agreements, read 24 September 2026).
If there is no land title, what proves you own the home?
There is no Torrens title showing you as owner of the park land, so keep the executed home sale documents and the site agreement as separate records and ask your solicitor what evidence establishes ownership of the dwelling in your state. In Queensland, the approved manufactured-home sale agreement must record identifying features of the home, the price, the transfer day and how ownership is shared if there is more than one buyer. In NSW, the buyer signs a contract for sale for the home and a separate standard site agreement for the land.
| State | Before you commit | What to keep |
|---|---|---|
| NSW | The operator must give the disclosure statement at least 14 days before the site agreement. Ask for the sample site agreement, community rules and community map and use the period to obtain independent advice. | Home contract for sale, disclosure statement, site agreement, site condition report and any negotiated fee or sharing arrangement. |
| VIC | New Part 4A site agreements must use the standard form from 1 July 2026. A cooling-off period applies after signing the site agreement; confirm the current period on the Consumer Affairs Victoria signing checklist. Cooling off on the site agreement does not automatically cancel a separate dwelling purchase agreement. | Dwelling purchase agreement, standard Part 4A site agreement, prospective-tenant notice and all fee and exit disclosures. |
| QLD | All buyers have needed a new site agreement since 6 December 2025, and from 7 June 2026 an on-site manufactured-home sale must use the approved Form 19 sale agreement. | Approved sale agreement, new site agreement, disclosure material and records identifying the home and ownership transfer. |
| WA | For a site-only arrangement, the operator must provide the proposed agreement, disclosure statement, park-living booklet, park rules, condition report and fee schedule at least 5 working days before the long-stay agreement. The seller must also give the buyer disclosure notice before the home sale contract is signed. | Sale contract, buyer disclosure notice, long-stay agreement, disclosure statement, park rules, condition report and fee schedule. |
| SA | For a site-only agreement, the disclosure statement, site condition report, rights information, park rules and fee and resale information are generally due at least 14 days before signing. A buyer of an existing dwelling can request the relevant documents from the operator. | Dwelling sale documents, disclosure statement, site agreement, condition report, park rules and written fee information. |
Sources: NSW Government, Buying into a residential land lease community; Consumer Affairs Victoria, Site owners' rights and responsibilities; Queensland Department of Housing and Public Works, Manufactured homes legislation changes; Consumer Protection WA, Managing site agreements and buyer disclosure notice; SA Government, Residential park agreements. Read 24 September 2026.
What happens between choosing a land lease home and moving in?
Most buyers run two transactions at once, the sale of their house and the land lease purchase, and the order of those two settlements decides whether they need any finance at all.
| Stage | What happens | The money question | Who answers it |
|---|---|---|---|
| 1. Choose the home | A new home is bought on a sale contract and may take months to finish; an established home is bought from the current owner on site | What deposit is due now, and on what date does the purchase settle? | The operator or seller, and your solicitor |
| 2. Read the disclosure | NSW: disclosure statement at least 14 days before signing, then a 14 day cooling off period. Queensland: documents at least 21 days before the site agreement, or 7 days with a lawyer's waiver | What is the site fee, how can it rise, and what fees come out when you sell? | Your solicitor |
| 3. Decide how to fund the gap | Sell first, or borrow against the house you are selling | Will the house sale cover the new home, the costs and any interest? | A finance broker |
| 4. Sell your house | Campaign, contract, settlement | Does the sale settle before, on or after the new home? | Your agent and broker |
| 5. Settle and move | Both settlements complete; any bridge is repaid from the house sale | What is left over after everything is paid? | Your conveyancer and lender |
| 6. After you move | Tell Services Australia about the sale and purchase; ask about Rent Assistance on site fees; consider a downsizer contribution within 90 days of receiving the sale proceeds | How is the leftover cash assessed, and how much can go into super? | Services Australia and a licensed financial adviser |
Sources: NSW Government, Selling your home in a land lease community, last updated 10 July 2026; Queensland Department of Housing and Public Works, Manufactured homes legislation changes, last updated 13 July 2026; ATO, Downsizer super contributions, last updated 20 January 2026. All read 24 September 2026.
Two points catch buyers out. A new home that is still being built can settle months after you sign, so a bridge on your house has to last until that later date, or your house sale has to be timed to it. And the cash left over after settlement comes with deadlines of its own, set out in what happens to the money left over.
What does it cost to live in a land lease home?
The main ongoing cost is the site fee set in your site agreement, and for a pensioner Rent Assistance can offset part of it: from 20 September 2026 it pays 75 cents for each dollar of fortnightly site fee above $157.80 for a single, up to $223.80 a fortnight, or above $255.80 for a couple, up to $211.00.
Around the site fee sit utilities, any special levies your state allows and insurance on the home itself, which you own.
What are site fees, and how often can they go up?
Site fees are the regular rent you pay the operator for the site your home stands on, and each state limits how and how often they rise.
- NSW: by notice, no more than once in any 12 months with at least 60 days' written notice; or by a fixed method set in the agreement with at least 14 days' written notice, no more than once a year, or twice a year where the increase is tied to the age pension.
- VIC: no more than once every 12 months, with 28 days' notice for a fixed amount and 90 days for a non-fixed amount.
- QLD: each increase is capped at the higher of CPI or 3.5 per cent, and market rent reviews are prohibited.
- WA: 12 months between increases on a site-only agreement, at least 60 days' written notice, and for agreements made after 31 January 2022 only a set amount, a percentage or a CPI change.
- SA: at least 12 months since the last increase and at least 60 days' notice.
The source for each state sits in the site fee and resale tables by state.
Can you be a homeowner for the Age Pension and still get Rent Assistance on land lease site fees?
Yes, potentially. DSS can treat an owned transportable home as your principal home where you have reasonable security of tenure, while Services Australia can still recognise the separate site fee as an eligible accommodation cost. The exact outcome depends on your agreement, payment type and circumstances.
The Department of Social Services guide, in its table for people who live in a caravan or manufactured home, says a person who owns the dwelling they live in and pays site fees for the land it stands on is not an ineligible homeowner and may be eligible for Rent Assistance. The same guide says residents of a manufactured home park or lifestyle village are treated similarly to caravan owners, but that some lifestyle villages may be treated as retirement villages if they have similar functions, in which case special residence rules apply (DSS Social Security Guide 3.8.1.100, reviewed 2 February 2026). Services Australia puts it more simply: you will usually be eligible for Rent Assistance if you live in a lifestyle village, which it assesses differently from a retirement village (Services Australia, retirement village or lifestyle village rent type, updated 14 July 2026), and site fees paid to the owner of a land holding for a transportable home you live in are a recognised rent type (Services Australia, site and mooring fees rent type, updated 16 June 2025). Ask Services Australia which way your community is treated before you rely on Rent Assistance in your budget.
| Situation | Site fee must be more than | Maximum Rent Assistance | Site fee at which the maximum is reached |
|---|---|---|---|
| Single, no children | $157.80 | $223.80 | $456.20 |
| Couple, no children (combined) | $255.80 | $211.00 | $537.14 |
Sources: Department of Social Services, Social Security Payment Parameters, 20 September 2026 indexation; the 75 cents in the dollar rate: Department of Veterans' Affairs, Rent Assistance, rates effective 20 September 2026. Both read 24 September 2026. Rates are indexed each March and September.
As an illustration, a single pensioner paying a site fee of $400 a fortnight would receive about $181.65 a fortnight: 75 cents on each of the $242.20 above the $157.80 threshold.
For the assets test, the same guide's definition of a homeowner includes a person who owns a transportable home in which they have reasonable security of tenure (DSS Guide 4.6.3.20, updated 2 February 2026), and the principal home is an exempt asset (DSS Guide 4.6.3.10, updated 20 March 2023). That is the guide's test, not a ruling on any particular land lease home.
Is a land lease home actually cheaper, and will it hold its value?
A lower purchase price can release equity, but it does not prove the home will be cheaper over your whole stay. Compare the purchase price, site fees, utilities, insurance, maintenance, exit and selling costs, Rent Assistance and the likely resale outcome over the number of years you expect to live there.
| Money question | Land lease home | Retirement village | Smaller freehold home |
|---|---|---|---|
| What are you paying for? | The dwelling, plus an ongoing right to occupy the rented site under a site agreement. | The legal interest varies. Common structures include lease, licence, loan or strata arrangements, with an entry contribution or purchase amount. | The dwelling and the land interest shown on title. |
| Main ongoing housing cost | Site fee, plus utilities, home insurance, maintenance and any disclosed additional charges. | Recurrent or service charges, plus the costs set by the village contract. | Council rates, insurance, maintenance, utilities and any strata charges if applicable. |
| What happens on exit? | Resale and exit costs depend on the state and contract. NSW's current voluntary-sharing regime does not allow a fixed entry or exit fee, but other agreed sharing or deferred amounts can apply. | Deferred management or exit arrangements are common but vary materially by contract and state. | Normal property selling costs and any mortgage discharge costs. |
| Rent Assistance | Eligible site fees in a lifestyle village or manufactured-home arrangement can qualify, subject to the payment and accommodation rules. | Eligibility depends partly on how Services Australia classifies the entry contribution and whether it treats the resident as a homeowner. | Owning the freehold home does not create an eligible rent payment. |
| Can a normal mortgage attach to it? | Usually not to the land lease dwelling itself because the buyer has no land title to mortgage. | Depends on the legal interest. Many village arrangements are not the same as ordinary freehold mortgage security. | Usually yes, subject to normal lender policy and serviceability. |
| What drives resale value? | The home, its age and condition, location, community demand, site agreement, ongoing fees and the buyer pool. There is no land component in the resident's ownership. | The contract, exit entitlement, unit market, operator and village demand. | The dwelling and the underlying land market. |
Sources and scope: Services Australia, Retirement or lifestyle village Rent Assistance; MoneySmart, Your home in retirement; NSW Government land lease community guidance. Retirement-village contracts vary by state and legal structure, so this table compares common money mechanics rather than promising one national contract model.
Do land lease homes go up in value or depreciate?
There is no national rule that a land lease home must rise or fall in value, and nearby freehold house growth is not a safe proxy because the resident does not own the land. Western Australia's official park-living guidance explicitly warns that a park home is a depreciating asset and may sell for less than its purchase price, while commercial agency research published in September 2026 found that around two-thirds of land lease communities had homes trading at a 10 to 70 per cent discount to nearby houses and just under a quarter had homes trading at a premium. Those figures describe relative market pricing, not a guarantee of what one home will do after you buy it.
Before buying, ask for recent resales inside the same community, the average time homes take to sell, the current and historic site fee, every resale or sharing charge, and whether the operator must approve the incoming resident. Those inputs are more useful than assuming the home will track the suburb's freehold price growth.
Sources: Consumer Protection WA, Park Living information booklet; Australian Senior Living 2026 market research, published 15 September 2026.
Do you pay stamp duty or council rates on a land lease home?
Do not rely on a blanket Australian claim that every land lease purchase has no stamp duty and no council rates. Transfer duty is state based and depends on exactly what legal interest is being transferred. Queensland, for example, expressly exempts a qualifying manufactured-home transfer where the home is on, or is being acquired for, a site under a site agreement and the transaction does not transfer land, provided the home is used as a principal place of residence. Other states should be checked against the relevant revenue office and your sale documents before you budget on a zero-duty assumption.
You do not receive a land title for the park beneath your home, so compare the site agreement and disclosure statement for the charges you actually pay rather than copying the cost list from a freehold house. Ask specifically about utilities, metering, special levies, insurance, selling costs and what the site fee funds.
Source: Queensland Revenue Office, Home transfer duty exemptions - manufactured homes, read 24 September 2026. Duty treatment elsewhere should be confirmed state by state.
What happens to the money left over after you move into a land lease home?
Money left over after you buy is no longer part of your home, so it can count towards the Age Pension assets test, and if you are 55 or older you may be able to put up to $300,000 of your house sale proceeds into super as a downsizer contribution.
Are house sale proceeds temporarily exempt from the Age Pension assets test while you buy the new home?
Yes, for the portion genuinely intended for the next principal home. For a principal home sold on or after 1 January 2023, DSS says that amount can be exempt from the assets test for up to 24 months from settlement. A further extension of up to 12 months can be available where you keep intending to use the money for the new home, made reasonable attempts within the required period and experienced delays beyond your control.
The exemption is not a blanket shelter for all cash released by downsizing. If you sell for $1 million, intend to spend $600,000 on the next principal home and keep $400,000 for other purposes, only the amount intended for the new home can qualify for the sale-proceeds exemption. The exemption also ends earlier if the new principal home is bought or completed, or you stop intending to use the money for it. Sale proceeds held as a financial investment can still be subject to deeming under the income test, even while the assets-test exemption applies.
Sources: Department of Social Services, Social Security Guide 4.6.3.90 - principal home sale proceeds; Services Australia, Real estate assets, read 24 September 2026.
The ATO's conditions for a downsizer contribution, all of which must be met (ATO, Downsizer super contributions, last updated 20 January 2026, read 24 September 2026):
- You are 55 or older when you make the contribution.
- You or your spouse owned the home for 10 or more years before the sale.
- The home sold is a residential building in Australia and not a caravan, houseboat or mobile home.
- The sale qualifies, fully or partly, for the main residence capital gains tax exemption.
- You have not made a downsizer contribution before.
- You give your fund the Downsizer contribution into super form (NAT 75073) before or when you contribute.
- You contribute within 90 days of receiving the sale proceeds, unless the ATO grants an extension.
If your ownership and site arrangements meet the DSS reasonable-security-of-tenure test, you can be treated as a homeowner for the Age Pension assets test, so the homeowner limits can apply: from 20 September 2026 the upper assets limit is $745,750 for a single homeowner and $1,121,000 for a homeowner couple combined, against $1,012,750 and $1,388,000 for non-homeowners (DSS payment parameters, 20 September 2026). The land lease home is exempt, but cash left over after the purchase counts towards that limit.
Each eligible spouse can contribute up to $300,000, and the total cannot exceed the sale proceeds. The land lease angle is the one-use rule: you can only ever make one downsizer contribution, and the ATO excludes a caravan, houseboat or mobile home as the home sold. If a later sale of your land lease home might not qualify, the freehold house you are selling now may be your only chance to use it. Confirm that with the ATO or a licensed financial adviser before settlement.
If your new home is still being built, the ATO's own example describes a buyer whose new home under construction settled late being granted an extension beyond 90 days; you apply by phone before you contribute. The ATO also notes that selling your home and making a downsizer contribution may affect income support such as the Age Pension, so get the Services Australia position first. If you are retired and bridging into the community, see how a bridging loan interacts with the Age Pension.
How do site fee and resale rules differ by state?
The state you buy in sets how site fees can rise, whether you can sell the home where it stands, and what the next buyer must be given, and those three rules move both the value of your home and the income of the park.
| State | Law | How often | Notice | What the increase can be based on |
|---|---|---|---|---|
| NSW | Residential (Land Lease) Communities Act 2013 | By notice: once in any 12 months. Fixed method: once a year, or twice if tied to the age pension | By notice: 60 days. Fixed method: 14 days | Fixed method: a single element such as CPI, a percentage of the age pension, a set dollar amount or a set percentage |
| VIC | Residential Tenancies Act 1997, Part 4A | Once every 12 months | Fixed amount: 28 days. Non-fixed amount: 90 days | Fixed or non-fixed amount; standard form site agreements for new agreements from 1 July 2026 |
| QLD | Manufactured Homes (Residential Parks) Act 2003 | Annual limit | General increase: at least 35 days. Special-cost increase: at least 2 months | General increases are capped at the higher of CPI or 3.5 per cent; market rent reviews are prohibited; new agreements from 6 December 2025 are limited to prescribed bases |
| WA | Residential Parks (Long-stay Tenants) Act 2006 | 12 months between increases on a site-only agreement | 60 days in writing | Agreements made after 31 January 2022: a set amount, a percentage or a CPI change; no market rent calculation |
| SA | Residential Parks Act 2007 | At least 12 months since the last increase | 60 days | The agreement can exclude or limit increases; fixed-term increases must be specifically allowed. Otherwise the operator may give 60 days notice, and residents can apply to SACAT if the increase is excessive |
| State | Selling on site | Operator as agent | Buyer's agreement and disclosure |
|---|---|---|---|
| NSW | A legal right to sell the home on site | Cannot be required; a written agency agreement is needed if the operator sells and charges commission | Disclosure statement at least 14 days before signing, then 14 days cooling off; voluntary sharing arrangements are optional, and a rent-only site agreement must be offered first |
| VIC | The site owner must allow a sale on site unless there is a good reason to refuse | May act as agent but cannot require it | Assignment of the site agreement; no fee may be charged for agreeing to an assignment |
| QLD | Yes; sale agreements use the approved Form 19 from 7 June 2026 | Optional; appointing the park owner is a condition of the buyback scheme where it offers selling services | A new site agreement is required from 6 December 2025, family transfers excepted; documents at least 21 days before signing, or 7 days with a lawyer's waiver |
| WA | The operator cannot hinder or obstruct a sale or unreasonably refuse a buyer | The tenant may appoint an agent | Check the tenancy agreement terms with the operator |
| SA | By assigning the site agreement | Not addressed on the source cited | The park owner's written consent to the assignment, which cannot be unreasonably withheld |
Sources: NSW Fair Trading, Site fees in residential land lease communities, last updated 22 September 2025; NSW Legislation, Residential (Land Lease) Communities Act 2013, current version; NSW Government, Voluntary sharing arrangements, last updated 26 September 2025; Consumer Affairs Victoria, Rent increases in site agreements, last updated 24 November 2025; Consumer Affairs Victoria, New protections for people living in residential parks, last updated 6 July 2026; Consumer Affairs Victoria, Transfers in caravans and residential parks, last updated 23 April 2025; Queensland Department of Housing and Public Works, manufactured homes legislation changes page, last updated 13 July 2026; Consumer Protection WA, Rent increases at residential parks, last updated 25 March 2025; Consumer Protection WA, Selling a park home, last updated 20 November 2024; SA Government, Bond, rent and other charges, last updated 21 May 2026; Law Handbook SA, Sub-letting and assignment, last updated 18 July 2025. All read 24 September 2026.
If you think an increase is excessive, the challenge route depends on the method: in NSW an objection to an increase by notice must be made within 30 days of the notice, and fixed method increases cannot be challenged at the Tribunal; in Victoria a non-fixed increase can go to the Director of Consumer Affairs Victoria within 30 days of the notice; in South Australia residents can apply to SACAT. For the operator documents a buyer's lender asks for in each state, see the park documents a buyer's lender asks for.
What happens if your land lease home is slow to sell?
Queensland has a statutory buyback backstop for an eligible home that has been on the market for at least 6 months and is vacant. If the owner opts into the scheme and the statutory conditions are met, site rent is reduced by 25 per cent six months after opting in and the park owner must complete the purchase by the end of the buyback period.
An eligible home is narrower than every manufactured home: under section 62C of the Manufactured Homes (Residential Parks) Act 2003 it must be in a residential park and must not have been brought onto that park by the current or a former homeowner. To join, the home must also be listed with the park owner if the park owner offers selling services (Queensland Department of Housing and Public Works, Manufactured homes legislation changes, last updated 13 July 2026). Elsewhere, site fees usually keep running under the site agreement until the home sells or the agreement ends, and you are selling a home without land to a smaller pool of buyers, so time on market and price are harder to predict.
How a sale on site usually runs:
- Check your site agreement for resale charges and sharing arrangements. In NSW, current voluntary sharing arrangements cannot charge a fixed entry or exit fee, but may include agreed capital-gain sharing, an on-site sale premium or deferred site fees.
- Decide on an agent. In NSW and Victoria the operator cannot insist you use it as your agent, and in WA it cannot hinder or obstruct the sale.
- Give the buyer disclosure before signing: at least 14 days in NSW, followed by a 14 day cooling off period, and at least 21 days in Queensland unless the buyer's lawyer signs a waiver down to 7.
- The buyer takes a new or assigned site agreement, a new agreement in Queensland from 6 December 2025 and an assignment with written consent in South Australia.
- Settlement, less any agreed fees.
Resale charges need to be named precisely. In NSW, the operator must not charge an entry or exit fee under the current voluntary sharing arrangement regime; instead a voluntary arrangement may include capital-gain sharing, an on-site sale premium or deferred site fees, and a rent-only option must be offered first (NSW Government, Voluntary sharing arrangements, read 24 September 2026). In Victoria, deferred management charges are the live issue: the Consumer Legislation Amendment Act 2026 (Act 36/2026) includes changes to clarify how deferred management charges and rent increases may be imposed in residential parks (Parliament of Victoria, statement of compatibility, 4 June 2026). Check which provisions have commenced, and have a solicitor read how your agreement calculates the charge, before you sign.
For families, the practical risk is time. If a resident moves into care or dies, the estate may carry site fees while the home is marketed, so ask the operator, before buying, how fees run after a resident leaves and what the agreement says about selling or removing the home. For anyone selling one land lease home to buy another, a slow sale stretches the next purchase in the same way a slow house sale stretches a bridge.
What happens if you move into aged care, die, or the land lease community is sold?
The home does not disappear when your circumstances change. Someone still has to deal with the site agreement, ongoing site fees and the eventual sale or removal of the dwelling, so these are contract and cash-flow questions to solve before you buy, not after a crisis.
What happens if you move into aged care before the land lease home sells?
For social security, a principal home can generally remain exempt from the assets test for up to 2 years after an income support recipient enters a care situation, subject to the detailed rules and any partner remaining in the home (DSS Social Security Guide 4.6.3.70, current version read 24 September 2026). That does not cancel the site agreement. You may still face site fees and selling costs while the dwelling remains in the community, so ask the operator and your solicitor what continues after you permanently leave.
What happens to a land lease home when the owner dies?
The dwelling is an estate asset and the estate may have to keep dealing with the site while it is sold. In NSW, the right to sell the home onsite continues if the homeowner dies, and the executor or beneficiary can exercise that right (NSW Government, Selling your home, read 24 September 2026). In South Australia, if the estate intends to sell a site-owned dwelling, the park owner gets the first option to purchase at an agreed market value; if no agreement is reached within 28 days after written notice, the estate can sell on the open market (Consumer and Business Services SA, Residential Parks Q&A, read 24 September 2026).
What happens if the land lease community itself is sold?
A change of operator does not mean the resident has sold their home. The effect on the site agreement is state-specific. South Australia, for example, says a new park owner takes on the previous owner's obligations for existing site agreements and must notify residents of the ownership change. Western Australia has specific notice rules where a residential park is sold with vacant possession, including longer notice for site-only home agreements (Consumer Protection WA, Ending a residential park tenancy, read 24 September 2026). Before buying, ask what your agreement says about sale, redevelopment, closure and relocation of the home.
What if the park closes, is redeveloped or the operator fails?
A park sale, a park closure and an operator insolvency are different events, and there is no safe one-line national rule for all three. Your rights depend on the state legislation, the site agreement, whether you own the home, the term of the agreement and what event is actually occurring. Western Australia, for example, has specific termination notices where a park is sold with vacant possession or is to be used for another purpose. Where a WA site-only tenant owns the relocatable home, a sale-of-park notice cannot require vacant possession before the end of a fixed term unless the tenant agrees, and compensation can be payable for loss caused by that termination.
That is why a buyer should ask before signing what the agreement says about redevelopment, closure, relocation costs, compensation and removal of the home. If a community is financially distressed or a closure notice has actually been issued, get state-specific legal advice rather than relying on the general resale rules in this guide.
Source example: Consumer Protection WA, Termination notice - sale of park and residential park termination forms, read 24 September 2026.
How do lenders assess and value a land lease community?
A lender values a land lease community on its income, mainly the site fees paid by residents who own their homes, and treats the homes themselves as the residents' property, not its security.
| Item | How a lender typically reads it | Why |
|---|---|---|
| Site fees from resident-owned homes | Core recurring income, often treated as annuity-style and valued by capitalising the net site fee income | Contracted and paid regularly; quality depends on the state's increase rules |
| Tourist or short-stay site income | Counted, usually discounted | Seasonal and less secure than site fees |
| Margin on selling new homes | Development profit, not recurring income | Ends when the last home sells |
| Approved vacant sites | Future income, valued on approval and expected take-up | No income until a home is placed |
| Homes owned by residents | Not security for the operator's loan | They belong to the residents |
| Homes owned by the operator awaiting sale | Separate security over goods, if any | They are chattels, not part of the land title |
| Voluntary sharing or exit fee income | Contingent, rarely counted as recurring | Depends on resales happening |
| Homes bought back under the Queensland scheme | Operator stock to resell, with a reduced site rent while in the scheme | Site rent falls by 25 per cent six months after a home owner opts in |
The sector is now large enough for lenders and valuers to have a much deeper comparable set. Commercial agency research published in September 2026 estimates slightly more than 51,000 operating land lease community sites in Australia, excluding caravan parks, with another 30,000 to 35,000 sites in development, and found around two-thirds of communities have homes trading at a 10 to 70 per cent discount to nearby houses, while just under a quarter trade at a premium (land lease sector research, September 2026, published 15 September 2026). For lenders, that improves the market evidence but does not turn resident-owned homes into mortgage security over land.
For a buyer, that is the core of funding a park purchase, and it links directly to how the land under a park is read. The site mix also drives gearing; see how permanents change the LVR.
What changes when a caravan park converts to land lease?
A conversion shifts the site mix from tourist sites to resident-owned sites, so the income is re-underwritten as site fees rather than tourist takings. The rules that apply to each site change as it converts; the due diligence on which rules apply to each site sits in our caravan park guide. In NSW, a fixed method site fee increase can use only a single element, such as CPI, which makes converted income easier to forecast than a park reliant on tourist demand.
How do developers fund new homes that are legally chattels?
Not with a standard residual stock loan, because those lend against titled lots, and a land lease home has no title and cannot be sold with its own land, so developers fund the land and the homes as separate problems.
That is the gap between this page and residual stock loans, and it is why what a residual stock loan is matters before a developer asks for one.
| Structure | Security | Repaid from | First gate |
|---|---|---|---|
| First mortgage over the land | The community's land title | Refinance as stages complete | Land valuation and approvals |
| Inventory or floorplan facility over completed homes | The homes as goods | The sale of each home | Proof each home is relocatable and identifiable by chassis or serial number |
| Mezzanine behind the first mortgage | A second-ranking position | Refinance or sales | The first mortgagee's written consent |
| Staged refinance | The land plus established site fee income | Longer term debt | Site fee income with a track record |
The first mortgage is standard development finance, and mezzanine funding sits behind it only with the first lender's agreement.
From the Switchboard desk, indicative only.
Basis: Switchboard broker files on land lease community developments and acquisitions, June to September 2026 (three files, none settled). As of 24 September 2026.
- A facility secured on completed chattel homes, repaid as each home sells, was quoted at around the cash rate plus 7 per cent in mid 2026.
- Mezzanine funding behind an existing first mortgage over the land was quoted in double digits, and needed the first mortgagee's written consent before it could proceed.
- The first gate on every home-secured facility was proof that each home is relocatable and identifiable by chassis or serial number. Where the homes turned out to be fixed builds, that route closed.
Indicative observations from files we have worked on, not a quote, not an offer and not a rate you will be approved at. Pricing depends on the lender, the security, the stage and the exit, and changes often.
Can a lender register security over the homes?
Only if the homes are personal property, not part of the land. On the PPSR, the serial-numbered classes are motor vehicles, aircraft, watercraft and some intellectual property rights (PPSR, Serial-numbered vs non-serial-numbered search), and personal property does not include land or fixtures (PPSR, About the PPSR), both read 24 September 2026. So a home-secured facility depends on the home passing the chattel test, and on the lender being able to identify each home.
Where homes are fixtures instead, state duty rules come into play. In Victoria, acquiring fixtures separately from the land attracts duty only where their total unencumbered value is over $2 million, phasing in to full duty at $3 million, and acquiring a security interest in a fixture is not dutiable (State Revenue Office Victoria, Fixtures and duty, updated 20 August 2026).
For the wider mechanics, see how development finance works, and for parks adding sites rather than building a community from scratch, expanding a park.
A land lease community splits ownership in two: the resident usually owns a movable home, while the operator owns the land and receives the site fee. A standard mortgage normally cannot attach to the resident's dwelling because there is no land title in the resident's name, so finance commonly comes from sale proceeds, bridging or other property. The real decision is broader than the loan: buyers need to understand the site agreement, how fees rise, how Centrelink and super treat the move, how the home can be resold, and what happens if they later move into care or die. Operators are financed differently, with lenders looking to the land, site fee income, approvals and any operator-owned stock.
Key takeaway: do not only ask “how do I buy it?” Ask “what do I own, what keeps costing money, and how do I get out if life changes?” before you sign.Frequently asked questions
Not a standard one. A mortgage needs land, and a land lease or park home is usually a chattel on a rented site with no leasehold interest in land to register. Land Lease Home Loans states it is no longer accepting new applications secured by a land lease home (read 24 September 2026), so new buyers commonly look to sale proceeds, bridging secured on another property, equity release from other property or cash. If you are buying the whole park, see how to buy a caravan park.
Generally no. Reverse mortgages are secured on real property the borrower owns, and a land lease home sits on land you rent. If you also own freehold property elsewhere, you may be able to release equity from that property instead.
Yes, if the loan is secured on the house you are selling. The land lease home is not the security. The bridge is repaid from your sale, so the lender will want a realistic sale price and timeline, and interest builds until settlement. Our guide to bridging loans without a bank covers the mechanics.
No. Services Australia says only real estate in Australia can be used as security for the scheme, and that land lease communities cannot be used as security because they do not provide land ownership. Another property you own may qualify, or may support an equity release refinance. Confirm your position with Services Australia before relying on it.
They can. The Department of Social Services guide says a person who owns the caravan or manufactured home they live in and pays site fees for the land it stands on is not an ineligible homeowner and may be eligible for Rent Assistance. Someone who owns the land as well, as with a freehold home, is not. Services Australia says you will usually be eligible in a lifestyle village, but check how your community is assessed.
Under the Department of Social Services guide, owning a transportable home with reasonable security of tenure makes you a homeowner, and the principal home is an exempt asset. Cash left over after you sell and buy is a separate question. Check both with Services Australia before you sell, especially if you plan a bridging loan while on the Age Pension.
Generally you can sell on site. In NSW and Victoria the operator cannot force you to use it as your agent, and in WA the operator cannot hinder or obstruct the sale. In Queensland the buyer signs a new site agreement, and in South Australia the park owner must consent to an assignment. If you are buying your next home first, the timing risk is the same as bridging until your property sells.
If it is an eligible home, has been on the market for at least 6 months and is vacant, you may be able to opt into the statutory buyback scheme. Homes brought into the park by the current or a former owner are not eligible. Site rent then falls by 25 per cent six months after opting in, and the park owner must complete the purchase by the end of the buyback period. For park buyers, bought-back homes change how lenders read permanent sites.
Possibly. If you are 55 or older and meet the ATO conditions, including 10 years of ownership, you can contribute up to $300,000 each within 90 days of receiving the sale proceeds. It is a one-time contribution, and the ATO excludes a caravan, houseboat or mobile home as the home sold, so the freehold sale may be your only chance. If you buy before you sell, the 90 days runs from the house sale.
Sometimes, but the charge needs to be named correctly. In NSW, an operator must not charge a fixed entry or exit fee under the current voluntary sharing arrangement regime; a voluntary arrangement may instead include capital-gain sharing, an on-site sale premium or deferred site fees. Victoria can allow disclosed deferred management or exit-related charges under the site agreement. Ask for the complete fee schedule and the worked exit calculation before you sign; park buyers see the same issue from the operator side in what to check before buying a caravan park.
It becomes part of the estate, but unlike a freehold home there is no land title to transfer, and the site agreement and sale still need handling. In NSW, the executor or beneficiary can exercise the right to sell on site. In South Australia, the park owner gets a first option to buy at an agreed market value, and the estate can sell on the open market if no agreement is reached within 28 days of written notice. Get legal advice about ongoing fees.
No. Resident-owned homes belong to the residents, so the operator's lender looks to the land title, the site fee income, approved vacant sites and any homes the operator still owns. That split is the starting point for caravan and residential park finance.
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