Frequently asked Questions
Q - Life right definition and terms?
Money paid for a life right to the owner of the property secures the purchaser the right to live in a specific house/unit for as long they wish or in perpetuity i.e. until the death or departure of both the husband and spouse. The life right is a contractual agreement between the owner of the property and the life right holder. The owner remains the sole owner of each unit. The responsibility for maintaining the unit is determined in the life right contract and it is important for the life right holder to understand his responsibility
Life Rights is a widely practiced and well recognized retirement scheme worldwide, however do your homework properly before entering into a life right agreement since there are a multitude of life right arrangements and you need to understand it properly to be able to compare apples to apples.
Always ensure that you understand the following terms of the agreement:
- Security of Tenure. Should a life right owner fall into financial hardship, he cannot be expropriated from his accommodation.
- Physical Security: A life right should also buy the retiree physical security.
- Health Security: A life rights contract must be clear regarding health care available in your unit prior to moving to frail care.
- Financial Security: The life right contract must be transparent in terms of disclosing levies and costs. This allows for reliable financial planning in your retirement years.
- Estate Security: How much of the money paid for the life right do I get back at the end of the arrangement and when will I get this money back.
Q – What are the terms of Groenkloof life right agreement?
Groenkloof sells houses and assisted living flats on a life right basis. This life right is described and agreed upon in a detailed life right agreement and if you consider a life right at Groenkloof you need to understand the terms and conditions of the contract. Some of the most common question regarding our life right arrangement is as follows:
How much of the life right amount do I get back at the end of the life right?
90% of the life right amount paid by the life right holder is repaid to the life right holder’s estate, 6 months from death. In the case of cancelation of the life right, this amount is repaid at the resale of the specific property to the next owner or life right holder. The remaining 10% is paid to the Homeowners Association (3%), the Care unit (3%) and to the owner (4%) mainly for maintenance to the property.
What is the levy due regarding a life right unit?
The levies of assisted living life rights are documented on our Care unit rates sheet, click here for the Care unit rate sheet. The levy for homes which is sold on a life right basis is the same as regular owned homes. However an additional levy is raised for municipal property tax, sewerage and insurance of the property.
Q - What is full title ownership?
Q - What is assisted living?
An assisted living resident is defined as a resident who needs assistance with at least one of the activities of daily living. Assisted living facility residents would usually be a senior citizen who does not need the level of care offered by a Frail Care unit but prefers more companionship and needs some assistance in day-to-day living.
At Groenkloof this means a bachelor flat in close proximity to the Care Unit to limit response time in the case of emergency. Assisted living residents are under the care and supervision of the Care Unit. Daily visits from the Care Unit ensures a good communication of the health and wellbeing of each resident.
Groenkloof sells assisted living flats on a life right basis, please contact us for availability and pricing.
Q - Home Owners Association monthly levies
We are proud of the Groenkloof model of low sustainable levies. The levies are as follows on 1 October 2019 – valid until September 2020:
- Groenkloof Great Brak Rivier, R390 per month per house
- Groenkloof Reebok, R500 per month per house
- Groenkloof George, R450- R530 per month per house
The levies above pays for communial expenses like perimeteter security, access control, insurance, municipal costs of communial areas, maintenance, administration costs, salaries, etc. It also include mowing of lawns of residents, this does not only take the hassle away from residents, but the disturbance of wheateaters are reduced to fixed times and security is improved. Groenkloof understands and promotes strong Home Owners Association Balance Sheets to enable proper maintenace and to avoid special levies for what ever reason. In the history of Groenkloof no special levy have been levied and we aim to nether go there.
Q - Care Unit monthly levies
All Groenkloof residents contribute on a monthly basis to the Care Unit. The levy or contribution are as follwos on 1 October 2019 – valid until September 2020:
- Groenlkoof Great Brak Rivier, R250 per month.
- Groenkloof Reebok, R250 per month.
- Groenkloof George, R250 per month.
Care unit levies are paid to the Care Unit operators, Southern Healthcare and Garden Route Healthcare. This levy insures that Care services are available to residents on a 24 hours basis. The Care Units are the heart of Groenkloof Retirement Villages and residents monthly contribution ensures that services are available and affordable. Amongst other things this levy are paid to fund:
- A 24h nurse on duty
- 24h manning of emergency/panic alarm system for medical emergencies
- Clinic visits for primary services at predetermined times for example blood pressure readings and changing of bandages
- Maintenance and upgrading of medical equipment
- Monitoring of residents’ health
- Preferential access to the Care Unit
- Owners receive a 20% discount on residence tariffs (meals excluded) in the Care Unit
- Maintenance of the communal area of the Care Unit
Q – What if levies increase more than what I can afford?
Levies are raised and collected for the sole purpose to pay for expenses related to the common property and the common interest of home owners. Therefore the levy increases as expenses increases. At Groenkloof the levy fund is subsidized by contributions from the resale of property and levy increases are therefore kept reasonable. Levies have not increased excessively at Groenkloof however the balance sheet is strong.
In unfortunate circumstances where the property owner (and his family) cannot afford the levies a reverse buy arrangement can be made with Green Route Properties to fill this gap.
Q – I need prices or floorplans for Groenkloof?
Q - I don't like the idea of parting with some of my favorite stuff, furniture and books?
While it is true that it can be difficult to part with certain items when moving in, our experience has shown that residents adjust to enjoying a less cluttered and more manageable lifestyle. Children are very often able and happy to take over some of the excess furniture, books and other items and memorabilia.
And remember you cannot take a “Venter waentjie” to heaven.
Q - I don’t feel ready to move to a retirement village?
The fundamental problem facing virtually all retirees is the dislike (shared by all of us) of any big change in our lives even though the change can be shown to be largely beneficial.
There could be disagreements in the family about the move (one of the retiring couple might want it but the other does not). Similarly some of the children think it is a good idea, others disagree. Family disagreements are a common problem when retirees contemplate moving. Experience, however indicates clearly that once the retiree has settled, the large majority are glad to have made the move. Also, it is simply not true that older folk enjoy solitude. All retirement villages will tell you that older people usually benefit from having company and their children are grateful to have them in a secure environment and have help at hand whenever needed.
Take note that moving for health reasons later in life can be very traumatic, so it is advisable to get into retirement village with this “extra” sooner rather than later. Frail care rooms are often in short supply and outsiders pay higher frail care rates than residents. Groenkloof ensures that health care is available to all its members at discounted rates.
Q – What is the pet policy of Groenkloof?
We learned from experience that the pet policy should be followed strictly. Here follows and excerpt of the Rules of Groenkloof regarding pets:
7.1 A resident shall be entitled to keep 1 (one) pet on their premises, provided that prior written permission has been obtained from the HOA. Residents must take note that the policy of the HOA shall throughout be to refuse permission with respect to the keeping of the pet which is too large, aggressive or noisy.
7.2 Pets must be on a leash when on any property other than the owners own section.
7.3 No kennel or other container for any pet kept by a resident may be visible from any place on the common Property or from neighboring residential units.
7.4 The removal of any excrement left on the common Property must be removed by the owner concerned immediately.
7.5 The privilege to keep an animal on the premises can be withdrawn by the HOA if such an animal is a nuisance or if the requirement sent out in par. 7.4 is not met.
Still have questions?
If you have any other questions you would like us to address here, please click here to contact us and send us a message.