WHAT IS A LIFE RIGHT?
When purchasing a Life Right, you have the sole and exclusive use of a property for the remainder of your or your spouse’s/ partner’s life.
A Life Right is sold under a secure legal structure and even though legal ownership is not physically transferred to the occupant, the Life Right essentially provides the occupant with all the legal protections of full ownership of the property during their lifetime.
There is no transfer duty or VAT payable on the purchase of a Life Right.
When purchasing a Life Right, the Life Right owner has the right to use the property for the remainder of their life. When the Life Right terminates, which is either on the passing of the Life Right holder, or if they move out of the Rivers Rest Life Rights Village community, the original capital sum or a portion thereof is returned to the occupant or their estate.
Rivers Rest Life Rights Village is always incentivized to maintain the high standard and upkeep of the property to ensure overall property capital appreciation, keeping the interest of the operator and the resident aligned.
Life Right are regulated by the Housing Schemes for Retired Persons Act (Act 65 of 1988) which gives residents protection and peace of mind about their security of tenure, and their capital.
HOW DOES A RIVERS REST LIFE RIGHT WORK?
A capital sum is paid upfront. This capital sum, less a Deferred Management Levy of 20% is returned to you or your family on leaving the village. This means that a minimum of 80% of your original capital is returned on exit.
This works out as follows:
Please see the financial benefits of the Life Right Model
BENEFITS OF THE LIFE RIGHT MODEL
FINANCIAL BENEFITS
A Life Right is equivalent to paying a rental upfront to a landlord for the lifetime of occupancy. The difference is that on a rental you get nothing back. With a Rivers Rest Life Right however, a minimum of 80% of your capital is returned.
The Life Right is a “pay on exit” model – which means that you only pay 20% of the Life Right as a rental and only on exit.
A Life Right is an asset in your estate.
There is no Vat or transfer duty payable with a Life Right.
Stability & Peace of Mind
As we get older, we worry about whether our lifetime savings and other investments will adequately provide for our future expenses. When it comes to providing for living and healthcare expenses, plus the maintenance concerns with owning a property, the fixed Life Right scheme provides you with certainty and peace of mind.
Your monthly living costs are determinable upfront, and for the rest of your life. In this way you can plan your finances, with no surprises, into the future.
Quality Standards
In our Life Right model, the capital appreciation of the property accrues to the resident as well as the owner/operator which means that to maximize our return on the Life Rights, Rivers Rest Life Rights Village need to ensure that demand for our units remains high with premium standards.
Our success therefore relies heavily on our resident’s satisfaction. In this way we are aligned to ensure we manage our senior living facilities optimally with our resident’s satisfaction and comfort our priority.