Vil­lage of­fers park­land at­mos­phere

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held last month about life rights and the value and ben­e­fits this kind of pur­chase op­tion of­fers buy­ers. He said that the life right con­cept is known for its pop­u­lar­ity, af­ford­abil­ity and long-term se­cu­rity and is widely prac­ticed world­wide. How­ever, while it is a highly suc­cess­ful and ac­cept­able re­tire­ment op­tion glob­ally, in SA it has been seen as a less than de­sir­able op­tion.

“No prop­erty pur­chase op­tion, whether its life rights, sec­tional ti­tle or full own­er­ship, is right or wrong. They just present the buyer with dif­fer­ent op­tions.”

Case ex­plains that life rights res­i­dents en­joy sim­i­lar priv­i­leges as if the home was pur­chased by sec­tional or other ti­tle; how­ever, the de­vel­oper re­mains the sole owner of the prop­erty.

But this also means that the de­vel­oper car­ries the re­spon­si­bil­ity of main­te­nance and up­keep of the vil­lage as by law, no spe­cial levies are al­lowed to be raised for main­te­nance work. In ad­di­tion Case noted that Ev­er­green Life Right schemes build up re­serves for ma­jor main­te­nance work and con­trol and limit levy in­creases.

“The price of the life right is pre­de­ter­mined and al­ways mar­ket re­lated and there are no bond reg­is­tra­tion fees, trans­fer du­ties and no VAT payable, thereby sig­nif­i­cantly re­duc­ing up­front costs. This is be­cause a buyer can­not raise a bond on the life right prop­erty, but can make use of a cov­er­ing bond fa­cil­ity such as a bond on an ex­ist­ing prop­erty which has been paid up or an ac­cess bond to en­able buy­ers to pur­chase off­plan,” said Case.

He also noted that when the life right ter­mi­nates, through death or other cir­cum­stances, it re­verts to the owner of the de­vel­op­ment who is then en­ti­tled to re­sell it.

How­ever, he also stated that on pur­chas­ing a life right at one of the Ev­er­green Life­style Vil­lages, the buyer and their part­ner se­cure the right to live in the vil­lage for the rest of their lives.

“This gives res­i­dents the peace of mind that their life­styles within an Ev­er­green Vil­lage are guar­an­teed un­der The Hous­ing De­vel­op­ment Schemes for Re­tired Per­sons Act 65 of 1988, no mat­ter how long they live and whether or not their fi­nan­cial cir­cum­stances change.

“Upon suc­cess­ful re­sale of a unit, the res­i­dent’s es­tate will re­ceive the orig­i­nal pur­chase price along with a per­cent­age of the net profit, which is de­ter­mined and agreed at the time of pur­chase, less sell­ing and re­fur­bish­ment costs. Fur­ther fi­nan­cial se­cu­rity comes from the fact that should res­i­dents run into fi­nan­cial prob­lems, the value of cap­i­tal can be off­set against the levy. When unit is sold, the amounts ow­ing by the res­i­dent will be de­ducted from the orig­i­nal pur­chase price to be paid back to the res­i­dent,” said Case.

“Fur­ther­more, if a life rights de­vel­op­ment goes bank­rupt be­fore res­i­dents take oc­cu­pa­tion, the full amount will be re­funded to them from an at­tor­ney’s trust ac­count, where all life rights pur­chase monies are held, and should a new de­vel­oper take over, they are legally bound to hon­our the life rights agree­ment in place. Con­tact: Ev­er­green Life­styles Amdec 021 702 3200

Ev­er­green at Broad­acres.

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