HAVE YOUR CAKE AND EAT IT TOO
Mar 08, 2019
CAN YOU HAVE YOUR CAKE AND EAT IT TOO?
Maybe so! Why not consider a life lease? Home equity, no maintenance, no worries.
Let's look at how to have that cake.
WHAT IS A LIFE LEASE?
A Charis Village Housing Society life lease is essentially a 29-year, pre-paid lease. It ensures that you can enjoy a lovely independent-living home and property for as long as you need it, and there will be a continuum of care in the same community through the provision of assisted living and long-term care. The life lease gives a sense of ownership and independence without the work and financial burden of maintaining a home. A life lease is not a mortgage or a monthly rental. Moving in or out of a life lease is a simplified transaction, and you are not responsible for resale or refurbishing duties.
WHY IS CHARIS VILLAGE NOT FOR PROFIT?
Charis Village is a not for profit society, meaning that there is no incentive to benefit financially from the lease of the duplexes and apartments. The members of the board are volunteers from our local community. The up-front cost of a life lease provides for the construction of the building and enables the future phases to move ahead. The not for profit designation ensures long-term affordability of senior housing and care facilities for future generations.
HOW DO THE FINANCES WORK?
A duplex or condo-like apartment can be reserved with a 5% deposit. Upon start of construction, a further 10% deposit is required. Deposits are held in trust until completion of construction. Upon occupancy, the leasee pays the remainder (85%) of the lease amount. There are monthly maintenance fees to cover expenses of snow removal, yard maintenance, management, common areas, amenities, etc. The leasee is responsible for content insurance, taxes and personal utility costs. On move out, the lease amount is refunded less a small refurbishing and re-marketing percentage. There is an option for investment, and investors who want to be involved in the Charis Village project are welcome to contact a board member for details of this opportunity.
IS LIFE LEASING A PRUDENT FINANCIAL DECISION?
A life lease secures your long-term comfort and stability by preserving your equity. You can be confident in your investment, knowing that there will be no unexpected repair costs and knowing what you will receive when the life lease is terminated. The society buys the unit back less a refurbishing fee, and is responsible for re-marketing it, thus eliminating realtor fees, legal fees and GST. Uncertain market trends do not affect the financial return on investments, as life leases do not depreciate or appreciate. A life lease is based on a solid money in, money out arrangement.
WHAT DOES A LIFE LEASE LIFESTYLE LOOK LIKE?
At Charis Village, you will live in a community founded on Christian values of aging with grace in a caring, respectful community. This does not mean that all residents will hold the same doctrinal beliefs, but it is understood by residents that these values are important underpinnings and will infuse the direction and decisions of the board and management. You will enjoy high-quality, solidly built, thoughtfully planned homes designed for senior living. All homes will be spacious, durable and comfortable and have amenities such as heated parking, full air-conditioning and high-quality appliances and finishes. You will have freedom from home maintenance, yard work, and snow removal. You will live in a community where you can find purpose, security and connectedness. Finally, you will be building a village of care for future generations in Central Alberta who will benefit from the foresight of Charis Village Senior Housing. And that might be even better than eating cake.