Renishaw Hills residents socialising over coffee.
If you’re researching options for how and where to spend your golden years, you’ve most likely come across life rights contracts. These lifetime tenure opportunities are very common within Retirement Estates and Retirement Villages across South Africa.
In this article, we take a closer look at life rights contracts, how they work, the potential drawbacks, and the alternative options you should know about.
What is a Life Rights Contract Model, Exactly?
Unlike traditional ownership, life rights contracts allow you to live in a home for the remainder of your life. While you won’t technically own the property, you don’t have any risk of eviction, as you would with renting.
This gives retirees peace of mind and a secure living situation, which becomes very important in later years.
How Does a Life Rights Contract Work?
While each life right contract is slightly different, they typically work by paying an upfront amount that gives you the legal right to tenureship for the rest of your life. And the owner holds the property’s ownership rights. There aren’t legal fees or transfer duties, as there are with traditional ownership.
The Benefits of Life Rights Contracts for Retirees
Many retirees opt for life rights contracts because of the following benefits:
- The right to occupy the unit for life, with no risk of eviction
- Lower costs than traditional ownership
- Less admin than traditional ownership
- Levies usually cover maintenance and security
- Access to a variety of on-site amenities
Are There Any Potential Drawbacks of Life Rights Contracts?
While there are many pros to life rights contracts, you should also be aware of the following cons:
- The contract is not transferable, which means it cannot be passed on
- There are often strict rules about who is eligible for life rights contracts
- Long wait times
- Limited housing options
What Are the Alternatives to Life Rights Contracts?
When it comes to buying/renting property in South Africa, you have plenty of options on offer. It’s essential to make a choice that will benefit you and your family in the long run. Some of the main alternatives to life rights contracts include:
- Conventional renting
- Traditional ownership (using a home loan, cash, or alternative financing)
- Reversionary Transfer Obligations
- Fixed-term ownership (similar to life rights contracts but spans a defined period)
An aerial view of the Renishaw Hills Lifestyle Estate with a view of the sea
Renishaw Hills Lifestyle Estate: RTO Model
Since Renishaw Hills is not a Retirement Village or Retirement Estate, we don’t offer life rights contracts.
Instead, we are a Lifestyle Estate that welcomes active retirees with a focus on community. Here, we offer bespoke RTO units that offer the following advantages:
- You get the Title Deed
- Opportunity to enjoy luxury living with up to 30% off the purchase price
- Developer buyback at full price (VAT excluded)
- The option to sell at market value if developer doesn’t want to buy
At Renishaw Hills, you can look forward to excellent facilities, beautiful views, and a serene setting that’s ideal for living out your golden years.
Do you resonate with our RTO offer as an alternative to life rights contracts? Contact us today, and we can set up a private tour of our Lifestyle Estate, where we can chat about the various options available and show you around our stunning estate on the South Coast.
