Self-funded is also known as lease-for-life. These types of leases are widely used by Retirement Village operators in Western Australia as being the most practical and cost effective method for residency contracts. Leases are not strata or land titles.
A lease gives you the security of tenure you reasonably expect and ensures that the whole Village is maintained to a continually high standard by the Village Managers who are responsible to all residents to ensure this happens.
This type of agreement is less complicated than a strata title so it keeps down administrative costs without disadvantaging you. In addition, there is no GST payable on the lease, and there is no stamp duty payable. The result is a lower purchase price for you.
Your lease provides a secure and legally binding interest that is protected by your Residency Agreement, the Retirement Villages Act 1992 and a Memorial which is lodged over the title of the Village protecting your rights under the Retirement Villages Act. The Village cannot be sold for any other purpose than as a Retirement Village so your investment is secure.