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Retirement opportunities that suit your needs


1 July 2019

Shot of a mature couple using a digital tablet while going through paperwork at home

There are so many options out there when it comes to choosing what retirement opportunity to purchase. The newer offerings have attractive lifestyles, some with their own Care Centre facilities on site; making the decision even more difficult to make. The best thing to do is to weigh up what option is best suited for you, from available facilities, location, to what purchasing opportunity it is and if it best fits your budget. Every development has its benefits; we take a comparative look at what Sectional Title and Life Rights options have to offer you.

 

The ins and outs of Life Rights

Opting for Life Rights may not give you financial gain, it will however guarantee you a home for the remainder of your life. These offerings come with world-class facilities and secure lifestyles.

Below are some facts about Life Rights that are handy to know.

  • There are no costs involved for transfer duty, VAT and capital gains tax.
  • You do need to pay a monthly levy, but the developer is liable for the retirement estate maintenance.
  • You are not liable for all costs related to maintenance, insurance and security in a Life Rights development.
  • The developer retains ownership of the property and therefore is responsible and has a vested interest to continuously maintain the existing development.
  • A Life Right option is not regarded as a property investment.
  • The levies are specified for a two-year period.
  • The occupant or his/her estate will get 80% of the original payment.

 

Sectional Title living

When purchasing within a Sectional Title development, you become a part owner and are able to financially gain from this investment through capital appreciation and even rental income. This also means you are partly responsible for the maintenance and management of the property.

If you are considering purchasing within a Sectional Title development, below are some facts to keep in mind.

  • You are liable for transfer duty, VAT and capital gains tax.
  • You become liable for the monthly levies and the special levies.
  • You will have to cover all the costs related to the maintenance, insurance, and security of your home.
  • Once the property is completed and sold, the developer is no longer responsible or invested in maintaining the property or development.
  • When buying within an off-plan Sectional Title development, you will also have the benefit of capital appreciation.

 

There are many pros and cons to buying within both Sectional Title and Life Rights opportunities. We want to ensure that you make an educated decision on what best suits your needs and, most importantly, your retirement plan and budget.

 

Retirement opportunities that suit your needs

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