Real Estate Investor Magazine South Africa April 2018 - 100th Issue! | Page 36

Life Rights vs
Sectional Title
WHAT IS A LIFE RIGHT?
An investment in a retirement development, which guarantees the
holder a safe and secure home for the rest of their life.
Weighing Your Options
T
he term “Life Rights” may seem
unfamiliar to those outside of the
retirement community. Far from
climbing the property ladder, it could be
considered the equivalent of finding a
steady balance on the top rung.
Purchasing a Life Right rivals a tradi-
tional “bricks and mortar” sectional title
investment in that its primary objective is
to offer a stress-free retirement lifestyle,
without burdensome admin. Sectional
title offers financial growth, but brings
with it concerns such as special levies,
body corporates and managing agents.
The Life Rights model is globally
recognised for its distinct advantages,
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enabling residents to live active, indepen-
dent, autonomous lives without the tradi-
tional burdens that come with owning a
property outright.
With greater life expectancy than
ever before, one of the biggest concerns
worrying older people is whether they
will outlive their assets. Sadly, even sub-
stantial retirement savings might not be
enough to support a person who lives
well into their 80s or 90s.
This, of course, also adds increased
pressure to access for housing for the
elderly in South Africa – resulting in
new retirement developments being
constructed in many parts of the country
APRIL/MAY 2018 SA Real Estate Investor Magazine
to address the demand. Many of these
developments now operate on the Life
Rights basis.
Arthur Case, CEO of Evergreen
Lifestyle, a provider of retirement living
in South Africa and a subsidiary of the
Amdec Group, explains: “When a per-
son makes the decision to move from the
family home into a home for their retire-
ment years, they face choices regarding
what form of ownership to purchase. The
purchase of a Life Right grants you and
your partner the security of guaranteed
lifetime occupation.”  
While any individual could purchase a
full or sectional title, and own the entire