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Life Right

Costs and Levies

The beauty of the Life Right model versus a Sectional Title purchase is that a Life Right transaction does not generate any transfer or registration fees and there is no VAT payable either. Also because the life right scheme holder retains ownership of the unit, all maintenance and upkeep costs are the scheme’s responsibility and not that of the retiree. With a sectional title property the retiree will not only have to fund future maintenance and up-keep of his/her section, but may additionally have to bear the cost of any special levies that the trustees deem necessary, even though the retiree may never actually enjoy the benefit of the planned upgrade.

With a Life Right there is also a monthly levy to pay. At CPOA a draft levy budget is presented to cover the first 3 years of occupation. This detailed levy breakdown is transparent and covers the costs of residence for the proposed unit and its occupants. It therefore allows the retiree to plan and budget their finances accordingly.

Of course not only is maintenance of the individual Life Right unit covered but also all costs associated with the up-keep of the whole village or complex is for the account of the Life Right Scheme owner and not the retiree. It is reassuring to know that there will never be a ‘special levy’ which can happen in sectional title.

What happens when the Life Right ends?

The individual Life Right terminates through death or other circumstances and the unit will then be resold by the scheme. With a CPOA Life Right, when the unit is successfully resold the original Life Right purchase price is transferred to the individual or to the estate together with a share of the profit on the resale, as laid out in the original Life Right contract. Some of CPOA homes offer a 25% share of the resale profit, less costs related to the sale and refurbishment of the unit, will be added to the initial Life Right purchase price.

Essentially buying on a Life Right basis can be viewed as a secure home purchase, an insurance policy and a worry-free existence rolled into one.

With over 65 years’ experience in the retirement market CPOA is not only a reliable and financially sound Life Right Scheme provider but as a NPO the company ‘re-invests’ funds generated to finance its welfare commitment, supporting those less fortunate retirees in the Western Cape.

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