WHAT IS A LIFE RIGHT, AND HOW DOES IT WORK?
A Life Right enables you to 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 is governed by the Housing Development Schemes for Retired Persons Act 65 of 1988. 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 property ownership during their lifetime. This gives residents protection and peace of mind about their security of tenure and capital.
When the Life Right terminates, either on the passing of the Life Right’s holder or if they move out of the Senior Living community, the original capital sum or a portion thereof is returned to the occupant or their estate.
In a Life Rights model, the capital appreciation of the property accrues to the resident as well as the owner or operator, which means that to maximise our return on the Life Rights, Rivers Rest Life Rights Village needs 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 as our priority
WHAT ARE THE FINANCIAL BENEFITS OF A LIFE RIGHT?
Firstly, no transfer duty or VAT is payable on purchasing a Life Right.
Secondly, a Life Right is equivalent to paying a rental upfront to a landlord for the lifetime of occupancy. However, with a Rivers Rest Life Right, a minimum of 80% of your capital is returned.
A Life Right is an asset in your estate.
ARE THERE RENTAL OPTIONS AVAILABLE AT RIVERS REST LIFE RIGHTS VILLAGE?
In future, the developers /managers may introduce a rental option. Rental option will depend on size and location of the unit.
CAN I GET FUNDING FROM A FINANCIAL INSTITUTION (BOND) TO PURCHASE A LIFE RIGHT?
Unfortunately, banks do not typically offer bonds or home loans the way they would for sectional title or full title purchases when buying a Life Right. Some banks may provide you with other loan arrangements.
Buying the Life Right would have to be a cash purchase.