THE FIVE TOP REASONS WHY LIFE RIGHTS MAY BE THE RIGHT FINANCIAL SOLUTION FOR YOUR RETIREMENT

If you’re looking at buying into a retirement development, you’re probably well aware of the choice between Life Rights and Sectional Title options. While there is no absolute answer as to which is the better form of ownership for everyone, because we all have different family and financial circumstances, there is a very strong argument that for the majority of middle-income South African retirees, the Life Right model has significant financial and lifestyle advantages. Here are the five top reasons why a Life Right may be right for you.

1. SECURITY OF TENURE

Acquiring a Life Right guarantees you and your spouse security of tenure for the rest of your lives, protected by the Retired Persons Act. With sectional title ownership, you don’t have the same protection. At a time when life expectancies are growing, you don’t want to have to worry about outliving your savings and having to move somewhere more affordable later on.

 

2. VALUE FOR MONEY

A Life Right is the most affordable way to buy into a privileged retirement lifestyle. There are no bond registration fees, transfer duties, conveyancing fees or VAT. And no capital gains on any profit. Perhaps most importantly, the developers can keep the price of Life Rights sales lower than sectional title as they can make their profits over a longer term, when they resell a property that becomes vacant later on.

 

3. NO MAINTENANCE COSTS

With a Life Right option, you don’t have to worry about the maintenance of your home or the common areas of your village. This crucial long-term requirement is, by law, the responsibility of the developer. In sectional title schemes, maintenance is the responsibility of the owners themselves – who may not be well equipped to make the best decisions, or want the hassles and headaches of budgets, levies and renovation costs.

 

4. CONTROLLED LEVIES

The Life Right option gives much greater certainty about levies, and there will never be any of those nasty special levies for big refurbishment projects. These costs will be solely for the developer’s account. In addition, the Life Right developer is required by law to provide a “statement of basis” for levy calculations as well as an estimate of levies for two years in advance. This gives Life Right retirees clarity about upcoming levies and the ability to plan around predictable costs.

 

5. NO MANAGEMENT HEADACHES

The Life Right model guarantees that the management of a retirement village will be in the hands of professionals, not amateurs. Group decision-making by retirees forming a Body Corporate can be time-consuming and error-ridden, and create hassles and arguments among residents. By contrast, professional managers have training and experience, and will be driven to maintain standards and levels of satisfaction of their residents because they are employed by the developers, who need to ensure optimal resale values. So the interests of the developers and the residents are perfectly aligned.

Rabie-Clara-Anna-Fontein-005
CAF lifestyle centre lounge
Ext_Unit3-Final

To register your interest in our upcoming launches, please enter your details below.

Oasis Life Retirement Villages, developed by the well-known Rabie Property Group with a forty-year track record of successful developments, offer the perfect balance of stunning up-market homes and spacious resort-style amenities. In these next-generation retirement villages, residents will enjoy a full suite of options for healthy and relaxing recreation. Our future-focused, tech-savvy cottages and apartments will suit those who value a healthy lifestyle, a vibrant community and high-tech connectivity and online entertainment.

The first three Oasis Life Villages in Cape Town are all located within the security and convenience of existing estates: Clara Anna Fontein in Durbanville, Burgundy Estate in the foothills of the Durbanville Winelands, and Century City, just 10 minutes from the centre of Cape Town.

If you’d like to meet with a retirement adviser to assess whether a life right option is right for you, please fill in your details and we will contact you to set up a no-obligation appointment.

RABIE’S PRIVACY PROMISE

We promise to protect your personal data. We will only send you news related to Oasis Life developments and articles of interest to retirees. You may unsubscribe at any time and have the right to be deleted off the database. You will never be spammed as a result of subscribing. We will never share your data with any other advertiser.