Rand Aid Association
The Rand Aid Association
For the discerning retiree - retirement villages with a wide range of supportive services to provide lifelong care and peace of mind
Rand Aid Association is a registered non-profit organisation founded in 1903. We have a long and proud history of providing a range of care and accommodation services to older people in all income brackets.
In the late 1980’s Rand Aid started to develop retirement villages that are sold on the life rights basis. This was in response to the high need for safe, secure accommodation with related health care and life style benefits and continued requests to expand our services and cater for a more affluent market, in addition to the existing rental accommodation services. Currently Rand Aid operates 3 life rights villages:
Purchasing a life right means that one acquires, for a capital sum, the right to live in the particular housing unit for the remainder of one’s life. This right is not the same as ownership of a property as the housing unit remains the property of the RA Welfare Development Trust. This means that one does not receive a title deed and that there is no transfer duty applicable. Purchasers sign a contract that meets the requirements of the Housing Development Schemes for Retired Persons Act, 1988. When the housing unit is vacated, 80% of the original purchase price is refunded to the purchaser or the estate, as the case may be.
Elphin Lodge, from 1990 – consisting of 223 one and two bedroom units
Thornhill Manor, from 2002 – consisting of 213 two and three bedroom units
Inyoni Creek, from 2007 – consisting of 175 one, two and three bedroom units. The last phase is currently being completed.
Apart from the original purchase price, a monthly levy is payable to cover the cost of services such as water, electricity, rates, security, maintenance, insurance of the buildings, servicing of the unit, administration costs and 24 days care per unit in the Care Centre. Rand Aid does not build any profit into the levies charged to residents to cover the cost of these services. In addition, residents benefit from the economies of scale the organisation can achieve, and levies are far below the cost of actual services had residents lived in freehold units in the community.
We at Rand Aid do not regard the sale of a life right as a once-off activity. In fact, the care and well-being of the life rights purchasers remain the concern of the organisation and the image and standing of the organisation are completely interlinked with the way in which we manage our life rights developments. All these developments form part of our brand. Rand Aid has proved over the years that it is very effective in the management of retirement villages and that it is able to provide a holistic and comprehensive service to its residents that not only includes the duties of a management association as detailed in the above Act, but have been expanded to the following inter alia:
Despite our extensive life rights developments, Rand Aid remains a welfare organisation with the main purposes of providing care and accommodation for less fortunate older persons as well as rehabilitation services for persons addicted to alcohol and other drugs. Therefore, your purchase of a life right contributes to services that alleviate the lot of others, in the following manner:
A village nursing service to run preventative health care clinics and follow up on sick and ageing residents. Where necessary, frail and sick residents are admitted to the organisation’s Care Centre which is registered as a home for the aged in terms of the Aged Persons Act, 1967 as amended. This accommodation can be either on a temporary or permanent basis. All cottages are allocated 24 days per annum free care in the Care Centre as part of the levy contribution.
A 24 hour emergency response service for all medical, maintenance and security emergencies. This includes handymen and qualified nurses on standby, as well as access to an ambulance for transfers to hospital. In addition, our therapists, ranging from social workers to psychologists are available to help residents with personal and psychological issues.
Contracts with podiatrists and physiotherapists to provide services on the premises at medical aid rates. We also provide facilities for beauticians and hairdressers on the premises to provide services to residents at reduced rates.
24 hour gate security, patrol guards as well as electrified fencing and perimeter cameras to monitor and prevent attempts to access the property.
The organisation of social activities in conjunction with residents, to provide for a wide range of interests. These activities are diverse, ranging from writing and discussion groups to book clubs, bingo, scrabble, snooker, bird watching, croquet, concerts and outings to places of interest. Rand Aid is a non-denominational organisation but respects spiritual needs and various religious activities are accommodated.
Practical services to enhance daily living, e.g. a handyman on the property to attend to maintenance needs, a daily gardening service, weekly domestic service for the cleaning of cottages, transport to and from major shopping centres, daily delivery of post, twice weekly refuse removal directly from units and a well stocked library on the premises.
Interest is received on the capital paid by the purchaser and held by the organisation.
A portion of the purchase price (20%) is retained by the organisation when the contract of purchase and sale is terminated due to the death or departure of the purchaser.
The housing unit remains the property of the organisation and it is refurbished and resold after every termination.
Although the development and sale of retirement housing does generate income for Rand Aid’s welfare services, it is a slow and costly process that only provides returns many years after the first sale. It has to be remembered that the cost of the development has to by repaid by Rand Aid and that only a portion of the selling price (20%) may be utilized for any expense – the main portion must be available for refund at any given point in time. In addition property maintenance and refurbishment costs increase over time and capital expenses remain the responsibility of the organisation.
For more information, on Rand Aid's villages click here:
Ron Smith Care Centre