Retirement is full of decisions. It is a time of life when ease, health and wellbeing should be of utmost importance, yet retirees are faced with the hefty decision of where to live their mature years.
Investing in a sectional-title home gives buyers the opportunity to stay on the property ladder and build equity. Whereas purchasing a ‘life right’ enables a retiree to buy a home for the remainder of their life without being responsible for its upkeep. The ‘life rights’ practice is widely recognised abroad and is a popular avenue for long-term tenancy in the later years of people’s lives in the USA, Australia and New Zealand. In South Africa, however, it’s still not a preferred method with many questions around the benefits of going this route, the biggest uncertainty lies in what happens with the purchaser’s deceased estate once they have passed on.
“Buying a property via a life rights agreement is just as the name suggests; the buyer purchases the ‘right’ to occupy a home within a purpose-built retirement development for as long as they live. But securing life rights doesn’t give retirees the financial legacy that most people desire, many clients wish to leave the property to their heirs, at prevailing market value,” says Director of Sales and Marketing at Devmco Realty, Pamela Naidu, who is integrally involved in the Capri Village development aimed at people over 50 years of age.
She continues, “We’ve seen with our Capri Village where we have launched Phase 2 of development, that many retirees dream of fulfilling hobbies, spending more time with loved ones and simply taking the time to enjoy life to its fullest. Of course, where you choose to live is a big part of that. When considering a property purchase in your later years, you need to think first and foremost about what is best suited to your lifestyle aspirations and retirement plans. For couples or individuals who want to live in a community-centric development, many consider buying either a sectional-title residence or one on a life rights basis when buying in a retirement home. Both options will most likely come with similar amenities, ranging from healthcare services, to sporting facilities and social clubs. The biggest difference and perhaps the most important is the financial implications of choosing a sectional-title purchase over a life rights.”
CAPRI VILLAGE OFFERS:
- Clubhouse
- Bowling green
- Bocce Ball
- Braai pods
- Indoor pool
- 24-hour security
- Library
Buying a life rights option does come with its benefits. Typically, life rights are more cost-effective than sectional-title properties as many developers fix some of the cost and levy hikes, and conveyancing costs and transfer duties aren’t applicable. However, none of the buyer’s capital outlay goes towards investing in fixed property, nor is a life rights option considered an asset so it will not appreciate in value. Contractually, once the buyer passes on, the developer takes ownership of the property once again and someone else will occupy the property thereafter. Only after its subsequent sale following the death of the purchaser, the deceased estate may receive a small portion of the initial investment.
“Financial security is earned through years of hard work. It is a privilege to build equity over the course of your life and to be in the position to pass on a tangible asset to loved ones and dependents, especially one that is likely to grow in value due to location, desirability and market demand. With a life right, none of this is possible. We’re seeing many mature buyers investing in a lifelong home at Capri Village, even before they’re ready to live in it themselves, and renting it until they decide to move in. This is another advantage of a sectional-title property or free hold ownership, and it’s just one example of the flexibility and financial independence it allows. For this reason and more, the demand around Capri Village has surpassed all our expectations, showing a healthy and vibrant over 50s market. It offers buyers a lifestyle that stands out from other retirement options, all based on thorough research and a keen understanding of what mature adults want.”
CAPRI VILLAGE OFFERS SECTIONAL TITLE AND FREEHOLD OWNERSHIP
Capri Village offers both sectional title ownership and freehold ownership to accommodate the needs of buyers. Sectional title and freehold ownership, allows purchasers the flexibility to rent out the property and benefit from capital appreciation, enabling mature buyers to leave a legacy for their loved ones. Freehold ownership allows purchasers to custom design their dream home according to their preferences and create a forever home. Whereas sectional title units take away the stress incurred in building.
Achieving 40% in sales within the first few days of launch, it’s evident that Capri Village has answered the market’s pent up demand for a product catering to the key needs of over 50s. It offers residents independent living in step-free, pet-friendly homes with private gardens, as well as discreet, professional medical services when needed, state-of-the-art security and incredible estate facilities within Salta Sibaya on the North Coast of KwaZulu-Natal.
Stands and 1-, 2- and 3-bedroom residences at Capri Village are currently available with starting prices from R1 295 000 for land and from R2 705 000 for homes.
Read more about Capri Village here
GET IN TOUCH
Call 087 550 1300 for more information
visit www.saltasibaya.co.za/#capri_village
