Along with sectional title and freehold, the Life Right is one of the most popular retirement purchase models in South Africa. Why? Well, for starters, it guarantees you and your spouse or partner a safe and secure home for the remainder of your lives. Here are eight other reasons to consider this model.

Return on investment
While it may not be a financial investment, a Life Right is most definitely an investment in a secure, enjoyable, stress-free and fully supported retirement lifestyle.

Pricing
The cost of a Life Right is linked to the percentage of capital returned to your estate on cessation of the contract – unlike most properties where the purchase price is based on factors like size, location and market – and that means it can easily be tailored to fit your budget. In other words, the fact that you don’t own the property under a Life Right agreement actually works in your favour.

Protected by law
The Life Right agreement is protected by law under the Housing Development Schemes for Retired Persons Act 65 of 1988 and is an asset in your estate.

Transparent costs and levies
Transfer duties, VAT, registration fees and capital gains tax do not apply to the Life Right model. What’s more, the law stipulates that the first two years’ levies must be declared at the outset of the agreement. There are also no special levies in a Life Right development as the full cost of all renovations, refurbishments, and security upgrades are carried by the developer.

This specific benefit was recently enjoyed by residents at Evergreen Muizenberg when over R3 million was spent repainting the development – boundary walls, apartment blocks, courtyards and all 70 houses – and every cent of the cost was covered by Evergreen.

Maintenance
Aside from painting, the developer is also responsible for maintenance, cleaning, gardening, landscaping and security. In other types of property schemes, all of these are the responsibility of the purchaser and a Body Corporate or Home Owners Association.

Access to funds
In an emergency, a Life Right holder can renegotiate the capital return in order to liberate some of the capital that forms part of the agreement. The proceeds would typically be used to pay levies that are in arrears, or healthcare costs.

Professional management
Life Right villages benefit from professional management of all manner of services, including hospitality, cleaning, maintenance, gardening, security and many other aspects related to the daily running of the village.

Developer backing and commitment
The developer retains ownership of the property in perpetuity. So, they have both a responsibility and a vested interest in maintaining the development to the highest standards, while residents enjoy the benefits.