Property and Investment / Hybrid Model
Constantia Place
their life. Therefore, The Somerset residents are given a choice between freehold or life right options.
The life right model offers security of tenure for life and improved financial peace of mind. With this model, 100 % of the original capital is refunded when the resident sells or passes away, but part of the capital growth on resale is forfeited. There is less upfront investment because ownership of the property does not change, which means that it is cheaper and easier to complete the transaction.‘ With the life right option, CPOA takes care of all external maintenance and repairs, gardening and general tidiness,’ explains Zipp.‘ It’ s hassle free for the resident.’
Depending on the scheme, CPOA offers a profit share of up to 25 %. For example, no profit share is offered at the more popular and established homes, such as Constantia Place, another of the top 10 estates in South Africa, and which has a long waiting list. However, at The Somerset Lifestyle & Retirement Village, residents are living on a site that is still under development, and therefore they are offered a 25 % profit share. Purchase terms are flexible. For example, part of the purchase price can be deferred and then deducted from the refund later on.
CPOA offers a number of care packages, with the on-site care centres being the operational hubs for these services. Zipp says that people want to try to remain independent and in their usual environment for as long as they can, so care starts with nurses or caregivers visiting the residents’ home to assist with activities of daily living, for example, getting dressed or making
Constantia
Place
beds. As residents need more assistance, their care packages can change.
Because people now live longer, there are also increasing incidences of dementia and Alzheimer’ s. This means that care centres need to be able to take care of people’ s mental health on a 24-hour basis. Depending on the stage of the illness and and the nature of their symptoms, residents suffering from dementia may need to be cared for separately. CPOA provides specially trained caregivers, and offers dedicated memory care in five of their homes. They also organise special, appropriate activities that provide social interaction and stimulation, and promote overall well-being.
The newly opened Memory Care Centre at Sea Point Place, for example, dedicates 14 of the 40 beds to residents with dementia.‘ It’ s a stunning facility,’ says Zipp.‘ We did a lot of research into the special needs of dementia patients to make sure that we can look after them well.’ Sea Point Place is an upmarket sea-front village in Three Anchor Bay that offers both long-term rental and life right apartments, with a profit share of 15 % on the life right option. It provides a weekly domestic service and laundry facilities, and has a hairdresser, coffee shop and library on site.
Zipp says that often the move into a retirement facility is triggered by the death of a spouse, couples needing to downsize, or their children moving to live far away. He says:‘ Retirees don’ t want to become isolated; they want to remain
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