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Life rights

Life rights

purchasing a lifestyle
When purchasing a life right at one of Rand Aid Association’s beautiful retirement villages, you are buying into a carefree lifestyle that eliminates most of the risks and responsibilities of property ownership, while at the same time securing your future and making provision for possible healthcare needs that may arise.
We have a proven track record in retirement village and frail care management. Our success in selling our life right purchase model is the result of sustained residents’ satisfaction and trust in Rand Aid, earned since the late 1980s when the first life right village was developed. This has established us as a market leader.
We offer the independence of a lockup-and-go lifestyle, with a range of support services, with the conveniences of adapting to your changing circumstances over time. For instance, you can switch from a cottage to an apartment or flat if you need to scale down. If your health deteriorates, you can have care in your home or move to our Ron Smith or Thembalami frail care centres.
Our life right model offers residents peace of mind in the knowledge that Rand Aid is here for the long haul, providing professional management and the expertise required to effectively maintain all aspects of the retirement village. In this way, residents enjoy occupation for life without the hassle associated with property ownership.
Life rights are safeguarded by law
The life right proposition is well-established internationally. Safeguards for both the purchaser and developer are provided for in South African legislation, through the Housing Development Schemes for Retired Persons Act, 1988.
A Rand Aid life right gives the buyer the life-long contractual right to occupy a unit within one of our retirement villages. It is similar to a long-term lease and while you have no legal title to the property itself or of the land, you and/or your co-purchaser are guaranteed a home for life. Should you ever want to relocate, or in the eventuality of the later of you or your co-purchaser’s death, the life right will be terminated and you or your estate will receive an 70% refund on your original purchase price.
The underlying transaction is that you purchase a life right at a market-related purchase price for a specific unit, from RA Welfare Development Trust, the owner of all the properties. The Trust, as the developer, retains ownership of the retirement village properties in perpetuity. Rand Aid Association has been appointed to manage the villages. As the managing agent, Rand Aid Association has a responsibility and long-term vested interest in maintaining the development to the highest standards, while our residents enjoy the benefits. Rand Aid is fully committed to its residents’ wellbeing.
Levy stabilisation fund
Rand Aid recognises that the income of many life right purchasers might not keep up with the increases in levy expenses. To ensure levies remain affordable for life right purchasers, a levy stabilisation fund for each life right village was established and became effective on 1 April 2012. Contribution to the fund is based on a share of the net life right sale cash proceeds.
The fund is utilised to stabilise or smooth levy increases arising from normal operating expenses annually. The amount to be utilised is agreed after discussion with the respective Village Committees and the Rand Aid Residents’ Committee.
Surpluses on the village levy account at the end of a financial year are  transferred to the Levy Equalisation Fund.
Life right advantages

The life right concept enables you to purchase quality accommodation at a reasonable price, with security of tenure for the rest of your life and with access to frail care centres if required.

In addition, acquiring a life right has the following financial benefits:

No transfer duty fees
No registration fees
No sales commission
You only insure household contents
Rates are shared
As Rand Aid is a public benefit organisation, the municipal rates are low and shared amongst all purchasers
Various other shared costs also result in affordable monthly property costs for purchasers
Monthly Fees
The monthly fees for the shared costs are fixed and set yearly, in consultation with residents. With Rand Aid Association as the managing agent for the Trust, you are assured of professional management of the village’s daily operations

We take care of office administration, municipal bills, maintenance requirements, security and access control and the continuation of professional services. You are therefore free to enjoy your well-deserved retirement, travel, socialise, engage in hobbies or contribute to an active community life in the village.