The mechanism of the life annuity is a relatively simple mechanism to understand is the fact of selling a property (or buying it) but paying the selling price, not all at once at the time of the transaction, but by monthly payment for the whole of the The annuity of the seller By selling life annuities, the seller will benefit, throughout his life from a complementary income, allowing him for example to complete his retirement. Contact knight frank real estate. In a more common formula and more sought after by sellers, the owner sells his building but retains the right to live on it (be careful, the right to live is not a usufruct). This is the definition of the busy life. Obviously, the selling price will have to be reduced since the owner retains a right of residence on the sold property.
Acquire a property
To acquire a property (house or apartment), the life annuity can be an excellent solution. Often better suited than the conventional bank loan, it is a very profitable option to finance the purchase of a home. It is a real alternative to investment levers such as life insurance or rental real estate, with a higher financial return. The sale for life is the transfer of ownership of the seller (annuitant) of a property to the property. investor (débirentier) who wants to acquire this property in the long term. The investor must pay the seller a “bouquet” and a life annuity until the death of the latter. In return, the investor acquires the property in its entirety when the seller dies. The “bouquet” is the payment of the initial capital at the time of signing the sales contract. The payment of the bouquet is not obligatory. Discover more information about french riviera apartments for sale. This sale responds initially to a growing demand on the real estate market while it is difficult to access. Indeed, for the investor, the sale in life can prove to be an interesting way to become an owner with the hope of getting a good deal. It also meets the needs of many seniors whose pensions are not enough. more to have a minimum of comfort of life.
An opportunity for seniors
The sale in the life annuity is an opportunity for seniors who have no heirs or who do not want to leave a real estate bequest. This allows them to sell their homes to earn income until the end of their lives. Whether the property is occupied or rented, the contract always specifies the terms. The buyer can become the owner with a payment in installments, when he has no financial contribution. This type of purchase serves as a long-term investment.