An artist’s impression of Riverside Gardens, a life right retirement complex, which will be managed by the CPOA.
Three decisions face anyone person contemplating a change of address and lifestyle for their retirement years, says Heather Cape, manager of new development sales at Greeff Properties.
“The first is when to retire, the second is what retirement village to live in, if any, and the third is which ownership model to adopt. The last two choices are linked because retirement estates usually offer only one model.”
She says a problem that becomes more apparent year-by-year is that people don’t age as fast as they used to and many never really retire. This means they delay making the necessary arrangements until very late in life, and often find they have limited options because the waiting lists are full at all the popular retirement centres.
“The other big decision, choosing the model that suits you best is also delayed. The options are life right, share block, freehold or sectional title. Many South Africans are inadequately informed on the merits of these different options - and, in particular, they do not know how the life right system works.
“Shareblock, freehold and sectional title ownership have been widely marketed for many years, whereas the life right ownership model is relatively new in this country.”
She says life right, almost without exception, offers the lowest price in relation to the product and this price advantage is enhanced by the fact that no transfer duty or tax are payable. This is because the model doesn’t give buyers ownership of their units but rather the right to live in it for the rest of their lives - and this right extends to both people in a marriage or partnership. If the one partner dies, the other can continue to live in the unit.
Also, when either of the parties dies (or decides to leave the unit) their heirs or they themselves are paid back on the basis that the capital sum paid is returned plus a percentage of the profit after costs. The rest of the profit is held back to enable the owner to refurbish the unit.
She says life right is the most widely used retirement home model worldwide. It is particularly popular in the USA, where it is referred to as the life plan model and in Australia and New Zealand where it tends to be known as the licence to occupy model.
Greeff Properties is marketing Riverside Gardens in Plumstead, a life right retirement village which will be managed by the Cape Peninsula Organisation for the Aged (CPOA).
Riverside Gardens consists of 57 one and two bedroom units priced from R799 500.
“Riverside Gardens will have excellent communal facilities, including a dining room, a communal living room, a bar with a big screen TV, a library, a heated swimming pool, a gym and landscaped gardens. It offers excellent value at a low price,” says Cape.
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