The Benefits of Life Rights Ownership
Retirement often requires a re-evaluation of one's life. Not only do you need to adapt to changes in your daily schedule and lifestyle, but you also need to re-assess where you live and how you approach property ownership. With changes in circumstances, priorities and goals, many retirees are looking for a property ownership model that reflects and suits this shift.
Freehold and sectional title ownership schemes make sense for people looking to enter the first rung of the property market or to expand to meet the needs of a growing family. However, when life's objectives change at retirement, property ownership needs change as well. This is why, on a global scale, most retirees are opting for life rights ownership. It's a form of ownership specifically designed to accommodate people in their retirement years - offering secure, hassle-free living for the rest of their lives.
How does Life Rights ownership work?
Simply put, life rights ownership is when a retiree invests upfront for the right to live in a property on a retirement estate for the duration of their lifetime. In effect, it is leasing a property for life. In return, the retiree gets to enjoy a high standard of living, with access to world-class amenities, without the hassles of maintaining a property. Furthermore, retirees who purchase a life rights ownership have their rights protected under the Housing Development Schemes for Retired Persons Act of 1988.
When a resident passes away, the developer is responsible for reselling - or regranting - the Life Right. A pre-established formula is applied to the profits from the sale, and the proceeds can go to the deceased's nominated beneficiary.
What are the benefits of Life Rights?
There is a reason why life rights ownership is the most popular choice for retirees around the world, and this is due to the numerous benefits that the scheme offers residents. Some of the biggest drawcards for life rights ownership are as follows:
- You have the peace of mind of knowing that you and your spouse have a home for life.
- It provides an affordable means to enjoy an upmarket lifestyle in a fully equipped, gate estate.
- You are exempt from paying VAT or transfer duty.
- Besides a monthly levy, there are no additional monthly rental or bond repayment fees.
- The developer retains ownership of the property and therefore has a long term vested interest in maintaining high standards, promoting improvements and ensuring the profitability of the village.
- When a spouse passes away, the surviving partner retains his or her life rights ownership to the property.
How does it work at the Rob Roy Retirement Village?
So how does this play out at Rob Roy Retirement Village? Essentially, the benefits mentioned above remain the same; however, in line with other luxury retirement developments, the Rob Roy is enhanced by additional facilities, services and operational benefits. These include the following specific to Rob Roy Retirement Village:
- Utilising their extensive knowledge and extensive experience in operating other life rights retirement villages, Beare Holdings (the Developers) have and will continue to manage the Rob Roy responsibly and professionally.
- The Developers will always have representation on the Management Association to ensure the smooth operation of the Village, including the preparation of budgets.
- The Care Centre ownership is independent of the village, which means that the resident's levies are not affected should the Care Centre not be profitable.
- When a Life Right comes up for regrant, the Developers will assume responsibility for the levy, relieving the deceased's estate of having to find the money to pay the levy until the Life Right has been regranted.
- The regrant formula provides for the refund of the original purchase price, plus 50% of the profit after estate agent commission, administration fee, contribution to the levy stabilisation fund and all refurbishment costs have been settled.
For many retirees, life rights ownership is by far the most sensible property investment for this stage of life. It's an ownership model custom-crafted for people entering retirement, and as such caters to their primary goals. It offers financial peace of mind, hassle-free living, and enables you to enjoy a stress-free retirement with a high standard of living.
Author: Rob Roy Retirement Village