Australia has 12 million empty bedrooms... So could this company crack the housing crisis code?

The company’s land rent model is spreading across Victoria at an ever-increasing rate. To date, more than 30 villages within driving distance of Melbourne have been built or are in the planning stage. In total, more than 5,700 homeowners have been accommodated with many more to come.

Lifestyle Communities started life modestly. At the helm was property veteran James Kelly, ably assisted by his partners Bruce Carter and Dael Perlov. The company debuted on the ASX four years later, quietly backdooring into a listed cash box. Over the next 17 years, only the insiders and some unsuspecting investors have enjoyed the stunning 2,500% return. Today the company has a market value of $1.7 billion.

"In Australia, every night, we have 12 million empty bedrooms, which speaks volumes to this empty nester challenge that Australia faces," Kelly says.

"We should have a 'last home buyers' grant. We know that first-home buyers' grants typically go into the builder's pocket when the government hands those out when there's a downturn in housing. But a 'last home' buyers grant would actually encourage people to get out of their homes, downsize and free up housing stock for the next generation." 

Today, Kelly, at 64 years old, is a prime candidate to be a Lifestyle Communities customer. I get the feeling though that he is still happy to keep the accelerator to the floor. 

I first met James not long after the company listed on the ASX in 2006. He has always been an engaging, upbeat individual, defying the typecast property developer image. In this podcast, he takes investors through the journey, and shares what keeps him inspired after 21 years in the business. 

Note: This episode was recorded on Wednesday 28 February 2024. 

Other ways to listen: 

• Podbean
• Spotify
• YouTube

Timecodes

• 0:00 - Intro
• 2:33 - From an idea in a cafe to a $1.8 billion company - coming up with the Lifestyle Communities concept
• 5:36 - The transformation of the retirement industry
• 7:17 - Early financing struggles and selling the concept
• 11:28 - The intrinsic desire to be part of a community
• 13:03 - James Kelly's upbringing, family life and first foray into property
• 16:03 - The lasting impact and legacy of property investment and development
• 17:14 - The key to successful property development
• 19:04 - Experiences that created the leader James Kelly is today
• 25:52 - The importance of pricing risk as a busy owner
• 29:22 - The Lifestyle Communities model and its first development
• 34:09 - Backdoor listing on the ASX
• 37:18 - Lifestyle's most recent capital raise and plans for the future
• 40:38 - The transformation of Lifestyle's share register
• 41:56 - The opportunity in Generation X
• 45:56 - Why leaders/managers should focus on being kind
• 47:46 - How to solve Australia's housing crisis
• 50:32 - Why James Kelly won't be retiring any time soon