09 . Additional monthly costs
Many retirees are now choosing a Life Rights model to keep down monthly costs . This is a contractual agreement , providing for the retiree to purchase the right to live in a retirement village for the remainder of their life ( while the property developer retains ownership of the home ). Upon death , the rights revert to the developer for resale .
In a Life Rights model in particular , the developers are committed to maintaining the conditions of the unit , the facilities , and the development as a whole . This is because when the Life Right terminates , ownership reverts back to them and the ongoing perceived value is directly related to the condition of the development .
Developers of a Life Rights village are required to produce a transparent statement declaring how levies will be calculated , as well as a two-year projection of what levies will be . This is a big help to occupants , who can plan their finances accordingly .
10 . Hands-on developers
No one wants to move into a sparkly new home only to see it deteriorate over the years due to poor maintenance .
Gus van der Spek Property Developer Retirement Lifestyle Estate Wytham Estate in Cape Town
SA Real Estate Investor Magazine NOV 2022 157