- Ingenia Communities Group (INA) announced a funding solution for prospective residents to land lease communities established by fintech start-up Land Lease Home Loans
- Land Lease Home Loans managing director Andrew Ralph said this is a significant untapped area of housing finance demand, adding that there is a strong pipeline of inquiries ahead of the official market launch
- Ingenia is providing “modest” seed capital and will hold a minority stake in the business, having the opportunity to reduce its investment as the business grows
- Land Lease Home Loans will initially launch their offer with Ingenia’s communities before expanding to other experienced operators
- INA rounded off the day of trading 1.09 per cent higher to sit at $5.58 per share
Ingenia Communities Group (INA) announced a funding solution for prospective residents to land lease communities established by fintech start-up Land Lease Home Loans.
The startup is solely focussed on providing residents of land lease communities similar financing opportunities to those available to a traditional house-and-land homeowner.
Ingenia Communities Group CEO Simon Owen said he was pleased to see a finance solution made available to residents of land lease communities.
“After many years of effort, undertaking meetings with literally scores of financiers who may have seen the opportunity but were not prepared to commit to offering a realistic solution, this is a great outcome,” Owen explained.
“We have seen the tremendous success of this market in the US where the provision of funding is commonplace and have been very keen to support the introduction of a well thought out and well executed finance solution for prospective residents who may require a modest loan to facilitate their move to a community.”
“This funding solution is a natural next step in the growth and maturity of the land lease sector in Australia,” Owen added.
Land Lease Home Loans managing director Andrew Ralph said this is a significant untapped area of housing finance demand, adding that there is a strong pipeline of inquiries ahead of the official market launch.
At the end of the 2020 calendar year, Ingenia had 40 land lease properties, totalling 4327 homes.
Ingenia Lifestyle general manager project sales Kate Melrose said it is increasingly seeing interest from both younger buyers and single people, who are still working and would like to make a move into communities.
“This product will open that opportunity for younger, aspirational buyers,” she said.
“With an increasing volume of downsize buyers still working and the trend for baby boomers wanting to take control and downsize earlier, Land Lease Home Loans will provide greater choice and control to more downsizers wishing to control the right time to move and increase access to affordable housing options for more people seeking security in later life.”
Ingenia is providing “modest” seed capital and will hold a minority stake in the business, having the opportunity to reduce its investment as the business grows.
In addition, Ingenia will provide $3 million to fund a loan book to be used to exclusively offer amortising loans to customers purchasing a new home in an Ingenia Lifestyle community.
Land Lease Home Loans will initially launch their offer with Ingenia’s communities before expanding to other experienced operators.
INA rounded off the day of trading 1.09 per cent higher to sit at $5.58 per share.