Lifestyle Communities promise retirees affordable, resort-style living. But some say they're a ‘financial prison’

Land lease communities are marketed as a way for people to downsize and keep their independence as they grow older. More than 130,000 Australians live in these communities, but what some don't realise is the properties can become a financial trap, difficult to sell and hard to leave.

Lifestyle Communities is one of Australia's largest operators of land lease communities — marketed as offering retirees affordable, resort-style living with all the amenities of a luxury development at a fraction of the cost. But some residents say the reality is very different.

Adele Ferguson's investigation for ABC 7.30, broadcast in July 2024, examined the business model of Lifestyle Communities and the experiences of residents who found themselves unable to leave without suffering significant financial loss.

The investigation drew on interviews with residents and their families, analysis of contracts and exit fee structures, and examination of the regulatory framework governing land lease communities — a sector that had grown rapidly but remained poorly understood by many of the people who moved into it.

The broadcast had an immediate market impact: Lifestyle Communities' share price plunged following the ABC investigation, as investors digested the implications of the regulatory and reputational risks the company faced.

The investigation contributed to growing scrutiny of the land lease sector and calls for stronger consumer protections for the more than 130,000 Australians who call these communities home.