When it comes to retirement planning, most individuals start to weigh up the option of downscaling to a smaller home or secure complex, versus moving into a retirement community where all your needs – social and medical – are catered for.
This is not an easy decision to make, and there are many factors to consider, but one of the most important financial considerations is how you want to manage future property ownership and how that will match your circumstances and priorities.
While freehold or sectional title ownership is a great choice for those starting out in the property market, most individuals entering their retirement years will prefer the secure and hassle-free living that comes with Life Right ownership.
Life Rights, in a nutshell
Despite this property ownership model being the most popular among retirees the world over, many people – especially in South Africa – are still unsure of what Life Right ownership actually is, and how this will affect their financial and personal well-being in their later years.
- Life Right is an upfront investment made by an individual to purchase the right to occupy a property within a retirement community.
- In return, you get to enjoy all the benefits that the village has to offer without the responsibility of maintaining your property or managing the responsibility that would usually come with the services provided.
- When this Right is resold, the original Life Right purchaser or his/her estate will be refunded a portion of the original purchase price. This refund varies from one retirement village to the other.
- Your rights are protected under the Housing Development Schemes for Retired Persons Act of 1988 (HDSRP).
From a healthcare perspective: The running costs of a comprehensive healthcare facility are high, and capital gain is required to support these expenses and to ensure that the quality of healthcare provided remains consistent. Life Right is ultimately the most effective model to ensure the continued and sustainable financial success of a good healthcare facility within a retirement village.
Ultimately, Life Right provides a hassle-free retirement solution which gives individuals the power of choice to invest in a retirement community that suits their budget, lifestyle and unique requirements.
Investing in a Life Right at Great Oaks, you invest in a secure future with world-class benefits:
- Financial Security: As you are purchasing the right to live in a property for the rest of your life, as opposed to purchasing the physical property, you don’t pay transfer duty or VAT.
- Access to world-class amenities & care: You will have access to all services and amenities at Great Oaks, including restaurants, spa facilities, boardrooms, healthcare and more.
- Ease of living: A professional management team will take care of the village’s day-to-day needs, including security, maintenance, gardening, and more – leaving you to truly enjoy your retirement at Great Oaks. A concierge service will look after your bookings – from travel to theatre and beyond.
- Superb healthcare: While the healthcare offering varies from one retirement village to the another, you are assured of world-class care at Great Oaks. In addition to our healthcare services, we will also offer a holistic memory care facility with a range of cutting-edge interventions and therapies to individuals living with Alzheimer’s or dementia.
- Thoughtfully designed: All units are designed to accommodate our Age In Place philosophy. This means that you can receive full frail care in your own home.
- Peace of mind: You have a home for life. Should you pass away or terminate your Life Right by moving, you or your estate will receive 100% of the original purchase price, less agent’s commission and refurbishment costs (depending on the period of your stay).
What to look out for, no matter where you invest:
- Be sure that you fully understand the product offering, what you will be getting for your money, and what your levies will cover, including:
- Are rates and taxes included?
- How many meals are covered in your levy, and can you opt to have your meals delivered to your cottage or apartment?
- Will you benefit from advanced facilities like Call For Care?
- Will your medical aid approvals be done for you?
- Will you enjoy additional extras like concierge services, gym access, etc.?
- Ask for the details of the projected levy budget for the first three years, and what it covers.
- Check that your money is paid directly into an Attorney’s trust account and not directly to the developer.
- Ask when the developer will be paid (ensure they only get paid once you have access to your cottage / apartment and amenities).
- If you are buying into a development, ask whether all services and amenities – especially the healthcare facility – will be complete and operational at the time of occupation.
- Confirm the total value of the refund when your Life Right is terminated, and when this refund will be paid.
Life rights ownership is a sensible and practical investment option for individuals wanting a stress-free retirement and financial peace of mind while maintaining the lifestyle standard they want. Contact Great Oaks to book your private consultation and chat about how we can offer you a luxury retirement with world-class care.