Life Rights
Ownership Explained
The last thing you need when you’re planning a retirement move is unpredictability, and we all know how complicated buying a new home can be. Add in variables like transfer costs, conveyancer fees, property taxes, and levies, and things quickly get stressful.
That’s why Ruby Living offers a Life Rights model that removes the concerns and complexity of traditional homeownership.
It couldn’t be simpler. You buy a Life Right that gives you a home for life, then you settle in and start enjoying the future you’ve planned.
So How Does a Life Right Work?
- You make a once-off lump sum payment to secure your Life Right.
- You pay a monthly levy with a fixed annual escalation to cover living and care costs.
- Above a certain age, your levies start de-escalating.
- There are no transfer fees or surprise charges.
- There are no special levies.
A Life Right gives you the benefits of homeownership without the financial uncertainty. You’ll have the right to live in your home for the rest of your life without the worry of market fluctuations or hidden costs, meaning you can plan ahead and enjoy the present.
When the time comes to leave your home, the Life Right is re-sold and your nominated beneficiary is refunded a lump sum of 80% of the original purchase price.
Pros and Cons of Life Rights
Life Rights are becoming an increasingly popular model for retirees in South Africa because they offer a unique combination of security and affordability while still making it possible to enjoy the same lifestyle. The end user is protected by a secure legal framework that affords them the legal protections of full ownership. By purchasing a life right you are effectively securing a usufruct over the property for the rest of your life. The Act that protects you is the Housing Schemes for Retired Persons Act (Act 65 of 1988).
Whether you’re proactively planning for the future, or being nudged by a major life or health event, choosing a new place to call home is a big step. What matters most – to you and your family – is the certainty that you’ll be happy, safe and well cared for and that you can afford to meet your ongoing financial needs. Whatever the future holds.
A Ruby Living Life Right has many benefits:
- Lower upfront costs than a freehold or sectional title sale.
- No transfer or conveyancing fees.
- Security of tenure for the whole of your life.
- Low-maintenance lifestyle, with no worries about upkeep of the property.
- Access to care and community and all the facilities and features to help you age well.
- Levies with fixed escalations and de-escalating levies over a certain age.
Here are more key things to consider:
- Capital appreciation accrues to Ruby Living: allowing us to continually invest in upgrades and care for the benefit of all residents.
- Resale is controlled by the operator: There’s no onerous admin for you or your loved ones when the time comes to sell.
- Not all operators are equal: The effectiveness of a Life Right depends on the credibility of the business providing it. Choosing a reliable, trusted operator is essential.
At Ruby Living, we have put our trust in Fedgroup, a reputable and well-established financial services provider that is widely regarded for putting people before profits. With Fedgroup’s backing, we’re able to ensure our residents enjoy the retirement they deserve.