More and more South Africans are investing in retirement developments, and for good reason

Retirement villages have made a huge move away from merely serving the elderly and have become an investment that meets the luxuries and supplies the benefits of a privileged lifestyle.

What is the difference between Life Rights and Sectional Title?

Sectional Title:

When you buy sectional title, you own that property outright, and with that comes all the responsibilities of maintaining the property, levies, administration in the form of body corporates and the associated legalities,

Transfer Duty and Registration fees are paid on purchase of a sectional title property, and Capital Gains Tax may be due on the sale of the property.

Life Rights

With life Rights, you buy the rights to live on the property until either the sale of that right… or death, but you have none of the responsibilities associated with Sectional title.

As the ownership of the property isn't transferred but retained by the estate, no transfer duty is payable. Nor are there any registration fees, as there are no title deeds.

The developer retains ownership of the property and therefore has a responsibility and a vested interest in maintaining the development to the highest possible standards.

Bequeathing a Life Right Property

A life right property can't be bequeathed to an heir, as the right terminates when you leave the village or die, however this type of ownership has a clause which ensures that your estate ultimately benefits by:

• The whole purchase price plus a portion the of capital growth. 
• The whole purchase price without capital growth. 
• Only a portion of the original purchase price. 
• No part of the purchase price.
• A combination of the above.

A life right is an investment in a retirement development, which offers the following advantages and benefits:

• No transfer duty, VAT or capital gains tax
• No admin or maintenance (the admin and maintenance of the complex remains the responsibility of the developer)
• No special levies
• No Insurance expense on the property
• No body corporate or managing agents
• No normal burdens of owning a property outright
• A safe and secure home for the rest of your life. 
• A stress-free lifestyle
• Transparent and affordable levies
• The benefit of “lock up and go”

Security

Many villages provide full security (Fully gated with state-of-the-art Security measures in place including 24 hour security patrols, CCTV surveillance, intercom systems, personal emergency alarm systems and panic buttons in each unit).

Frail Care or Buddy Services

Many retirement villages offer the additional benefits of medical and frail care services, whilst others operate on a buddy system.

• Buddy system: where neighbours are grouped together to assist each other.
• The locations of the Villages are typically within close proximity to hospitals.  
• The Units typically have at least two bedrooms with the intention that should the need arise, care givers could be brought in on either a part or full time basis.