What is a life right?

Retirement villages are housing communities designed for older adults who want to downsize and enjoy a secure, maintenance-free lifestyle. In South Africa, these villages have become popular because they offer retirement community benefits like safety, social connection, and on-site conveniences. Residents live independently in their own cottages or apartments while enjoying shared amenities such as gardens, clubs, and recreation facilities. Unlike staying alone in a large family home, moving to a retirement village means you can have privacy and independence as well as easy access to healthcare, security, and a community of peers – all of which contribute to a more carefree and enjoyable retirement.

Most retirement communities in South Africa are geared toward people around 55 years and older. However, you don’t necessarily have to be fully retired from work to move in. Many residents choose to downsize and join a retirement village while they are still active in their careers or pursuing new interests. The key requirement is usually an age threshold (commonly one member of the household must be above a certain age, such as 50, 55, or 60). These communities are designed to suit the lifestyle of older adults, but they welcome independent, active seniors whether or not they are formally “retired.” It’s about the stage of life and the desire for a secure, community-oriented living environment, rather than strictly about one’s employment status.

The cost of retirement village living generally includes an upfront purchase price (or entry payment) for your home and ongoing monthly fees. The upfront cost can vary widely depending on the location, size, and type of home (apartment, cottage, etc.), as well as the ownership model of the village. In South Africa, many villages use the Life Right model (or similar schemes), which often has a lower initial cost than buying a comparable property on the open market. In addition to the purchase or buy-in price, residents usually pay a monthly levy or service fee. This monthly fee covers the operational costs of the village, including security, upkeep of common areas, and access to facilities.

A Life Right is a popular ownership model in South African retirement villages. Instead of purchasing the property outright, you buy the right to live in a specific unit for the rest of your life. You don’t take transfer of the property title – the village or development company remains the property owner – but your lifelong residence is legally guaranteed and protected under the Housing Development Schemes for Retired Persons Act.

One major advantage of a Life Right is that it simplifies things financially: there are no transfer duties, VAT, or bond registration fees to pay when you move in. The purchase price is also often more affordable than a full property price, since you’re investing in the lifestyle rather than the bricks and mortar. When the Life Right is terminated (for example, if you relocate or after you and your spouse pass away), the unit reverts to the operator, who will resell it to a new resident. After that resale, the original purchase amount (or a predetermined portion of it, per your contract) is paid back to you or your estate. In essence, a Life Right is an investment in a secure, worry-free retirement lifestyle – you have a home for life, while the village management handles property ownership and upkeep responsibilities.