Guest Panel: Arthur Case weighs in on life rights
KwaZulu-Natal has proven to be one of South Africa’s most desirable retirement locations, with the North Coast being at the top of the list, and it is not difficult to see why. The attractive North Coast boasts every bit of convenience and quality of life and has therefore positioned KwaZulu-Natal as the premier retirement location in the country.
With the sharp rise in demand for a safe, secure and premium retirement product; it is vital to consider all the options available, from sectional title to life rights, and find the retirement plan that best suits you, as well as your budget and lifestyle.
Purchasing a life right product serves a primary objective to offer a stress-free retirement lifestyle, without the burden. Sectional title offers financial growth, but brings with it concerns such as special levies, body corporates and managing agents, whereas life rights offers the opportunity to have your own home without the added stresses. Today, most retirement schemes are developed to be either sectional title, share block or life rights schemes.
Arthur Case, CEO of Evergreen Lifestyle provided some valuable insight into retirement, life rights as well as the new opportunities in retirement living as he sat on the panel at our Retire KZN event, held earlier this year.
Amongst the opportunities on offer, the planned Evergreen Lifestyle retirement launching within Umhlanga Ridgeside, will offer buyers into what is termed a ‘life right’ scheme. As an unfamiliar concept in South Africa, and especially KwaZulu-Natal, it is important that potential buyers understand what buying on a life rights basis entails.
So, what is life rights? Life rights is defined as guaranteed right to occupation for individuals for their lifetime, where ownership is retained by the developer or other appointed authority and is only resold after the demise of the last dying person. This is similar to a lease agreement between landlord and tenant, or an interest-free loan to the developer in return for use of the property in lieu of the interest earned on the loan.
“The term itself may seem unfamiliar to some but it is an investment in a retirement development, which guarantees the holder a safe and secure home for the rest of their life, enabling residents to live active, independent, autonomous lives without the traditional burdens that come with owning a property outright,” explains Arthur.
“Purchasing a life right in a retirement village also boasts the additional benefits of medical and frail care services on the premises, as well as world-class hospitality and security – benefits which are reassuring later in life. Ultimately, the life right delivers peace of mind and freedom from financial worry. With transparent and affordable levies, pricing tailored to fit your budget, and tenure guaranteed for life, the prospect of living longer is no longer cause for anxiety,” he ends.