Retirement villages vs aged care
Retirement villages and aged care aren’t the same thing.
Confident retirement living choices: Retirement village vs land lease community
Thursday, 17 July 2025
Choosing where to live in retirement is a big decision and one that deserves clarity, confidence and careful consideration.
Whether you're exploring retirement villages or land lease communities, understanding the differences between these two models can help you make the right choice for your lifestyle, financial goals and future wellbeing.
In this article, we outline some of the key differences between retirement living and land lease, to help you understand the different models.
What is retirement living?
Retirement living typically refers to moving into a retirement village, where residents enjoy independent living in a supportive, community-focused environment. These villages are designed to help older Australians live active, connected lives with access to shared amenities, wellbeing programs and social opportunities.
Keyton retirement villages are built around the idea of living retirement to the maximum, with thoughtfully designed homes, vibrant communities and a strong focus on health, happiness and connection.
What is a land lease community?
A land lease community is a newer and more disruptive model in the retirement sector. In this setup, residents buy their home but lease or licence the land it sits on from the operator. This means they pay ongoing site rental fees, which can increase annually and are often used as a profit centre by the operator.
While land lease communities may appeal to some for their upfront affordability, they come with fewer legal protections and less flexibility in contract options.
Key differences: Retirement village vs land lease
Here’s a side-by-side comparison to help understand some of the core differences:
Feature | Retirement village (Keyton) | Land lease community |
Ownership model | Lease or license to occupy | Own home, lease or licence land |
Legal protections | Covered by retirement village legislation | Covered by general tenancy laws |
Fee structure | Service fees cannot be profit-driven | Site fees may increase and generate profit |
Contract options | Multiple options, including no exit fees | Usually one standard contract |
Amenities access | Included in general service charges/recurrent charges (e.g. pools, gyms, wellbeing programs) | May incur additional costs |
Transparency | Residents involved in annual budgeting | Limited input on fee changes |
Exit guarantee |
| No standard exit guarantee |
Legal protections and transparency
One of the most important differences is the level of legal protection offered to residents. Retirement village residents are protected under state-based retirement village legislation, which safeguard their rights and interests. At Keyton, we go further by being a signatory to the Retirement Living Council’s Code of Conduct, which sets high standards for transparency, service and resident experience.
Learn more about the regulations and legislations protecting Keyton residents
Land lease communities and retirement villages are regulated differently in Australia.
Land lease communities follow state-based residential tenancy laws, which provide general rules for how these communities operate. In contrast, retirement villages are governed by specific retirement village legislation. This legislation offers stronger protections and safeguards for residents, ensuring their rights and wellbeing are better supported.
Costs and contracts
In a land lease model, residents pay site rental fees that can increase annually with limited restrictions. These fees often cover maintenance and infrastructure but can also be a source of profit for the operator.
Unlike land lease communities, retirement villages like Keyton follow laws that usually require monthly service fees/general charges to only cover actual costs, without making a profit. These fees cover costs and expenses such as village staff, utilities for common areas and garden/property maintenance. Residents are also invited to participate in the annual budgeting process, ensuring transparency and predictability.
Keyton offers multiple contract options, including choices with no exit fees and options that allow residents to share in capital gains when they sell. This flexibility empowers residents to choose what works best for their financial situation.
Amenities and lifestyle
Retirement villages are designed to support a vibrant, active lifestyle. At Keyton, residents enjoy access to the amenities available at the village which may include:
- Swimming pools
- Gyms and fitness centres
- Theatres and community centres
- Wellbeing and exercise programs
- Social clubs and events
These amenities are included in the service fees, no hidden costs or memberships required.
Learn more about Keyton's monthly service fees
Peace of mind with Keyton
We understand that moving into a retirement village is a big step. That’s why Keyton offers a 6 month money-back guarantee, in our leasehold villages. If a resident decides that retirement village life isn’t for them within the first six months (excluding the Refundable Contribution Contract), they can exit the contract and receive a full refund with no Deferred Management Fee (DMF).
This initiative reflects our commitment to leading with heart, providing residents with confidence, flexibility and peace of mind. Some conditions apply.
Frequently Asked Questions
Is land lease cheaper than retirement living?
Land lease communities may appear more affordable upfront, but ongoing site fees can increase annually and may become costly over time. Retirement villages typically offer more predictable costs and greater transparency.
Do retirement villages have exit fees?
Some retirement village contracts include exit fees, but at Keyton, we offer multiple contract options, including those with no exit fees and options that allow for capital gain sharing.
Is access to amenities included in the recurrent charges in a retirement village?
Yes. At Keyton, amenities like pools, gyms and community facilities are included in your monthly service fees.
Are retirement villages regulated?
Yes. Retirement villages are governed by state retirement village acts and regulations, offering strong legal protections. Keyton also adheres to the Retirement Living Code of Conduct for added transparency and quality assurance.
Making the right retirement choice
Choosing between a retirement village and a land lease community depends on your lifestyle preferences, financial goals and desire for legal protections and community support.
At Keyton, we encourage all prospective residents to seek independent financial advice before signing a contract. Our goal is to provide clarity, confidence and a welcoming environment where you can truly enjoy retirement.
Explore retirement living with Keyton
Discover how Keyton retirement villages offer:
- Great value for money
- Transparent and predictable costs
- Strong legal protections
- Premium amenities and wellbeing programs
- Flexible contract options
- Peace of mind with our 6 month guarantee
Live retirement to the maximum, with confidence, clarity and community.
For more information about the lifestyle and support offered at our retirement villages, call our customer service team on 1800 550 550 or send us an email here.
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