Life Right vs Sectional Title: What's the smart choice for retirement living and financial security
A Life Right is essentially an interest-free loan that you pay upfront, allowing you to reside in a well-maintained retirement village for the rest of your life without actually owning the property.
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Pippa Hudson interviews Mariska Auret, CEO of Rabie Property Developers.
Listen below.
As uncomfortable as it may be to discuss, death is one of life’s certainties.
Having a plan in place for the final chapter of your life can create a smoother transition, not just for you, but for your family.
An important aspect of this planning involves your living situation.
You might consider moving into an assisted living facility, staying with a family member, or investing in retirement schemes such as Life Rights rather than purchasing a sectional title property.
What are Life Rights?
A Life Right is an interest-free loan you pay upfront, allowing you to reside in a well-maintained retirement village for the rest of your life without owning the property.
This arrangement means you won’t have the responsibilities that come with ownership, such as maintenance and repairs.
However, it is crucial to approach this decision with care.
Auret emphasises the importance of purchasing a Life Right only from reputable developers with a proven track record.
Avoid buying from unknown sources, as this can lead to complications later on, she says.
"It is of utmost importance that you can go and research that developer and see that they have a track record."
- Mariska Auret, CEO – Rabie Property Group
According to Auret, from a financial security perspective, a Life Right is a sensible option, particularly for retirees on a limited budget.
She explains that the Life Right agreement clearly outlines how levy increases will be managed, providing transparency and predictability for residents.
Importantly, unlike sectional title schemes, Life Right holders are not subject to special levies for upgrades, ensuring that unexpected costs are minimised.
This structure makes Life Rights an attractive choice for those seeking both stability and peace of mind in their retirement living arrangements.
"You definitely get a fantastic lifestyle and you know what you're going to get back at the end of the day."
- Mariska Auret, CEO – Rabie Property Group (07:00)
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