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The Emerging Life Right Model

How It Works in Your Favour

In the vast realm of retirement living options, there’s a rising star that retirees are increasingly drawn to – the Life Right Model. While traditional property ownership has long been the standard, the Life Right Model is carving out its niche, especially within the idyllic landscapes of places like KwaZulu-Natal. But what exactly is this model, and how can it work in your favour? Let’s delve into the intricacies and benefits of the Life Right Model as an emerging trend.

Understanding the Life Right Model

At its core, the Life Right Model is a contractual agreement between a retiree and a developer. Instead of buying a property outright, retirees purchase the right to live in a specific home or unit within a retirement village for the duration of their lifetime. The developer retains ownership of the unit.

Should you decide to sell your Life Right and move, you are well within your rights and typically you will receive the original cost you paid for the unit upon resale.

Upon the retiree’s passing, the right returns to the developer, who can then resell the unit. According to your Life Right contract, your estate would receive the original cost of the unit once resale has taken place by the developer. This model provides both security and flexibility, attributes that are highly valued during one’s golden years.

Why the Life Right Model is Gaining Traction

1. Financial Ease:

Financial predictability is a cornerstone of stress-free retirement. With changing healthcare needs, desires to travel, or simply to ensure a comfortable daily living, managing finances becomes paramount. One of the primary draws of the Life Right Model is its financial benefits. Acquiring a Life Right is often more affordable than purchasing a property in its entirety. Additionally, retirees can sidestep transfer and bond costs since the property isn’t transferred to their name.

2. Reduced Admin and Maintenance:

Imagine a retirement free from the worries of property maintenance, structural repairs, or garden upkeep. The developer typically shoulders these responsibilities in a Life Right agreement. This reduced administrative and maintenance aspect is particularly appealing for retirees, as it allows them to focus on relaxation and recreation.

3. Predictable Levies:

Budgeting becomes even more crucial during retirement. The Life Right Model often comes with the perk of clear, upfront estimates of levies, helping retirees plan their finances more accurately.

Levies are monthly fees that residents of retirement villages pay. These fees often cover a range of services and amenities, from security to maintenance, communal facilities upkeep, and sometimes even utilities. In traditional setups, these levies can fluctuate based on various factors, such as unexpected maintenance issues or changes in service contracts. Such unpredictability can be a source of financial stress for retirees.

What sets the Life Right Model apart is the upfront clarity it provides regarding these levies. Developers, under this model, often present clear, detailed estimates of levies for a specified period, often up to two years. This transparency means no unexpected hikes or surprise costs. Retirees can plan their monthly expenses, allocate funds for leisure or healthcare, and essentially manage their budget without the looming uncertainty of fluctuating levies.


Implications for Financial Planning:

For retirees, especially those on fixed incomes, this predictability can be a game-changer. It allows for more accurate financial planning. For instance, if a retiree knows their levies for the next two years, they can make more informed decisions about other investments, savings allocations, or even discretionary spending. It also reduces the need for maintaining a large emergency fund for village-related expenses, freeing up funds for other uses.

Security: Retirement villages operating under the Life Right Model prioritise the safety and well-being of their residents. With 24/7 security, surveillance, and often, medical facilities on-site, retirees can enjoy peace of mind.

Community Living: These models foster a sense of community. Shared amenities, group activities, and communal areas create opportunities for social interaction and the formation of deep bonds with fellow residents.

Legal Protection: Retirees under the Life Right Model are protected by regulations, such as the Housing Development Schemes for Retired Persons Act 65 of 1988, which provides a legal framework ensuring the rights and interests of retirees are upheld.

Flexibility and Freedom: With no property ties, retirees have the flexibility to travel, explore, and enjoy their time without worrying about property upkeep in their absence.

Considerations and the Future of the Life Right Model: While the Life Right Model boasts numerous advantages, it’s essential to be aware of its intricacies. It’s crucial to understand the terms of the contract fully, especially concerning what compensation the retiree’s estate will receive upon their passing. Engaging with legal professionals or financial planners can provide clarity and ensure informed decisions.

The real estate and retirement landscape is ever-evolving. As more retirees become aware of alternative living models, the demand for such options will likely grow. Developers and retirement communities may soon find that adapting and offering the Life Right Model, alongside traditional property ownership, becomes a necessity rather than a choice.

The emergence of the Life Right Model showcases the evolving needs and preferences of today’s retirees. It presents a compelling blend of security, community, financial benefits, and peace of mind. As with any significant decision, especially one as crucial as choosing a retirement living option, thorough research and consultation are vital.

In places like KwaZulu-Natal, where the beauty of nature meets modern amenities, the Life Right Model can truly offer retirees a chance to enjoy their golden years to the fullest. If you’re considering this model, remember. t’s about a lifestyle choice that prioritises ease, comfort, community, and peace of mind.



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