3 reasons to consider a Life Right

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If you’re thinking about moving to a retirement village, you’ve probably started looking at the various offerings. One of the options is a Life Right model – something that many people aren’t familiar with. But it has distinct benefits that could make a real difference to your quality of life. Here’s why it might be the right choice for you.

1. Residency for life
Life expectancy for South Africans is on the rise: 53 in 2006, 64 in 2017, and projected to reach the 70 mark by 2030. Increased longevity could create a scenario where your retirement savings may not be enough to support you into old age.

As the name suggests, a Life Right in a retirement village guarantees a safe, secure home for the rest of your life. It also means transparency when it comes to levies. These have to be predicted two years in advance so that you’re fully aware of the amount you’ll be paying and for which services. Levies may be increased annually, but a major benefit is that, unlike in sectional title developments, Life Right developers may not impose special levies.

2. No maintenance
When you purchase a Life Right, you’re investing in a stress-free retirement lifestyle and a well-maintained environment. The developer retains ownership, so they are responsible for the upkeep of the exterior of the property, as well as management and maintenance of the estate – including insurance and security. You’re free to focus on enjoying life without the admin that comes with owning a property outright.

Life Right developments also typically offer additional benefits like on-site medical and frail care, and facilitate social events and activities.

3. Flexible pricing
The Life Right model gives a certain degree of flexibility when it comes to pricing, which makes it an attractive option in terms of being able to structure it as it suits you. For example, a lower purchase price could be offered in exchange for a reduced capital return, and this can usually be done on a case-by-case basis. Also, a Life Right means you’re not liable for costs like transfer duty, VAT or capital gains tax, which could make a huge difference to your available funds.