Things to Consider
Moving out of a home in which you have spent a large part of your adult life and downsizing into a new environment is not easy. The transition can create enormous anxiety.
For most retirees, the decision to move is driven by life-changing events or circumstances, and often there isn’t the luxury of time to carefully weigh every option. That is why it’s advisable to explore estates and facilities early, before you are under pressure. The right choice will greatly impact your happiness, comfort, and quality of life.
Some Key Considerations
Timing of the Move
If possible, plan your move while you are still healthy and active enough to enjoy the facilities and form friendships. Many experts recommend choosing an estate that provides a full spectrum of care—independent living, home based care, assisted living, and frail care—so you can upgrade to higher levels of support if needed later.
Location
If you have family, select an estate or facility close enough for regular visits. Ideally, the facility should provide sufficient care services so that your family does not carry the full burden of responsibility.
Financial Factors
Decide whether buying or renting is better suited to your circumstances.
- If buying, consider whether a Life Right or Full Title property is preferable.
- Compare upfront costs, ongoing levies, and future potential expenses such as assisted living or frail care.
- Ask whether services relevant to you (meals, laundry, medical assistance, etc) are charged as a fixed fee or billed separately.
- Establish whether certain medical costs can be claimed from your medical aid.
Exit Clauses
Clarify whether you can terminate the agreement, under what conditions, and at what cost.
Financial Sustainability of the Estate
If a capital payment is required upfront in the case of Life Rights, examine the facility’s financials for liquidity and long-term sustainability. A financially secure estate ensures continuity of service and safety of your funds.
Regulatory Compliance
Confirm that the estate or facility complies with all relevant regulations (click here for guidelines)
Services, Amenities and Lifestyle
Consider whether the services and amenities offered—such as on site visits from medical professionals, gyms, grooming services, gardens, pools, libraries, restaurants, or social clubs—match your needs and interests. (click here for a list to consider)
Food and Dining
Review meal options, menus, and flexibility for dietary requirements. Attend a meal if possible to assess quality and atmosphere.
Staffing
Staff ratios and qualifications are critical. Observe staff interactions with residents, and ask how emergencies and routine health issues are handled.
Community and Culture
Pay attention to the residents. Do they seem happy and engaged? Can you picture yourself fitting in with the community?
Life Rights Explained
A Life Right is a contract that allows you to live in a retirement estate for the remainder of your life, while ownership of the unit remains with the estate. Upon death, the right reverts back to the estate, which resells the unit. Couples may also enter into a joint contract, which continues until the death of the last surviving partner.
Life Rights are governed by the Housing Development Schemes for Retired Persons Act 65 of 1988 (HDSRPA). You must be at least 50 to qualify, though many estates impose higher minimum ages.
Key Features
- The estate assumes maintenance responsibilities.
- Your funds should be professionally managed, as they should be accounted
for as long-term liabilities in the estate’s financial records. - Estates are required to provide a transparent levy calculation and two-year
levy estimates. - Each estate has its own unique Life Right rules and resale structures, which
must be reviewed carefully.
Advantages
1. Lower entry cost than full ownership.
2. Lifetime security of tenure.
3. No transfer duties or registration costs.
4. Simplified estate planning.
5. Developer/operator (estate) responsibility for upkeep.
6. Incentive for developer/estate to maintain estate and property to ensure
resale
7. Reduced burden on heirs.
Disadvantages
1. No capital growth or asset appreciation.
2. Property cannot be inherited or freely sold.
3. Operator/ estate controls resale and pay-out terms which often takes time
4. Early exit may involve deductions.
5. Limited flexibility in modifying the unit.
Suitable For
- Retirees who prioritise financial predictability and security over investment
growth. - Those not concerned with leaving property assets to heirs.
- Individuals who prefer the operator to manage maintenance and resale.
Life Right vs Full Title – At a Glance
| Feature | Life Right | Full Title |
| Ownership | Right to live in the unit for life (spouse often included). | Own property outright (land & buildings). |
| Inheritance | Cannot be inherited. | Can be inherited, sold, or transferred. |
| Capital Growth | None; typically only original price, less deductions returned on exit. | Property appreciates over time. |
| Upfront Costs | Lower; no transfer duty or registration fees. | Higher; includes transfer duty and legal costs. |
| Levies | Often lower; operator incentivised to maintain. | Owner responsible; can be higher. |
| Maintenance | Operator's responsibility. | Owner's responsibility. |
| Estate Planning | Simplifies estate process. | Property included in estate; may delay winding up. |
| Flexibility | Limited; renovations restricted. | Full control, subject to scheme rules. |
| Resale | Managed by operator/estate; pay-out may be delayed. | Controlled by owner/estate. |
| Risk & Security | Strong legal tenure protection. | Market-dependent asset value. |
Levels of Care in Retirement Facilities
Independent Living
Residents are able to live freely and independently, managing their own affairs (driving, shopping, cooking, finances) while enjoying the security and social benefits of a retirement estate.
Assisted Living (Midcare)
For residents who need partial support and care with daily activities (e.g., mobility, medication, personal care) while still enjoying living on their own with the ability to engage socially. Assistance can be provided in-home or within a facility offering different care levels.
Frail Care
For individuals requiring significant support, including 24-hour nursing. May involve help with mobility, toileting, or supervision for cognitive decline (such as dementia). Facilities vary in their definitions of frail care, so detailed discussions and assessments are necessary.
Memory Care
Specialised long-term care for residents with Alzheimer’s or dementia. Facilities are designed for safety, structure, and reduced stress, with staff trained to manage the unique challenges of memory-related conditions. Daily routines are highly structured, and residents receive close supervision and support.
