When you enter your twilight years, the desire for peace and community intensifies.
A love of value for money also increases.
The retirement village satisfies the desire for community and peace, but does it deliver value?
The Cost of Living in a Retirement Village
The terms retirement village, retirement community, and retirement estate are often used interchangeably. Yet they have different costs and restrictions.
A retirement village is a community where residents, typically over 50, purchase life rights to a property.
This differs from retirement communities and lifestyle estates where residents buy a sectional title.
As part of the sectional title rules, they must meet age restrictions and other conditions for body corporate approval.
With life rights, the buyer can only occupy the property for as long as they’re alive. The developer retains control.
For a modest flat, a retiree can find a home below R500 000.
At the higher end, a house can cost R5 million in sought-after retirement villages.
Since you’re not buying a property, banks do not offer a bond.
Levies and Fees at a Retirement Village
When you join a retirement village, you agree to pay levies.
These levies typically increase by the consumer price index (CPI). But they may rise beyond this depending on the village’s needs.
As of 2026, levies range between R2 000 and R4 000.
There’s also the potential for waitlist fees.
Established retirement villages may charge these fees for individuals who want to join.
They can be one-off fees or paid annually until you secure a spot.
Retirees also pay for the amenities.
Joining a club may be free.
But residents have to pay for comforts like meals, laundry, clinic services, and transportation.
Breaking Down the Numbers
Moving to a retirement village can make sense when you consider that you don’t pay conveyancer and transfer fees. Gardening, home maintenance, security, and insurance are also free.
Being part of a community and participating in groups is also another freebie.
Yet, Life rights end when the remaining occupant passes.
It could end sooner, usually when the occupant moves out or moves to frail care.
If you choose to end the contract, you leave with nothing.
The money you’ve paid doesn’t offer you equity in the home or the estate.
Is it worth it?
To answer that question, consider how much your monthly costs will be for the duration of your stay.
The table below shows the potential cost of a life rights contract over 20 years.
If you add your rates to this calculation, you could be paying between R4 100 on the lower end, R10 200 in the mid-range, and R26 900 on the higher end.
Then, you can contrast that with what you’ll gain if you have the title deed and what you’ll spend.
Over 20 years, these costs total R84 000. If you include inflation, you’ll have spent R242 760 over 20 years if inflation continues on the same path.
But you will have also maintained your home and can use that capital later in life.
Could Life Rights be Worthwhile for Retirees?
As a life rights holder, your greatest benefit is the lack of fees: you don’t pay transfer or conveyancer fees.
You don’t pay to maintain or upkeep your home, nor do you pay for security. When the gardener comes to maintain your yard, you don’t pay.
Your initial payment and levies cover these costs. You can live your twilight years in peace.
But you also lose out on capital growth, an estate and control.
As a resident of a retirement village, you don’t get any voting power.
When you pass, the developer will regain control of the estate and will benefit from any capital growth.
The property cannot be inherited, and ownership cannot be transferred.
Whether this is worthwhile will depend on whether you think the upfront cost and levies justify losing homeownership in favour of amenities.
