This is according to AVIEW property developer and owner of Manor Life, Gus van der Spek, who was on the Business Hour to explain the differences between life rights and sectional titles. Van der Spek acknowledges that there are many benefits – cost wise – to going the route of life right, but where you will be happiest is what matter.
Now life rights “buys you the right to live in a home in a retirement facility and gives the holder of the right the security of tenure for the rest of their life”. He says life rights straddle a lease agreement and home ownership and as a result there are no transactional costs involved. Furthermore, there is a bouquet of services available in a life rite situation versus sectional title situation. He says sectional titles “refer to ownership of a unit within a complex or development. This differs from a full title, which is where full ownership rights, including the land upon which the property is built, are purchased”. There is a greater responsibility and as a result services levies need to be paid.
He delves more into the differences in his conversation on the Business Hour.