The Life Rights System provides the retired individual and his or her partner with the right to occupy a unit in a complex for the remainder of their lives. This ‘right’, protected by an Act of Parliament, is paid for with a capital investment and on relocation or death the unit is ceded back to the development at the full invested price and the payment is returned to the exiting Life Right holder or the deceased estate.
This option provides the investor with a means of supplementing their income from the sale of a previous home without having to sacrifice their lifestyle or standard of living. Once the price of the unit has been paid, the buyer pays a monthly levy and does not have to be concerned about the cost of their accommodation escalating beyond their means.
The retired individual is then in a better position to fund their lifestyle, using the remainder of their capital. This retirement option sets the price of accommodation for the life of the buyer and does not include a transfer duty.
Locally the Life Rights System is protected by the Housing Development Schemes for Retired Persons Act No 65 of 1988 and is ideally suited to retired individuals seeking peace of mind at affordable prices.