Real estate annuity
The real estate annuity enables property owners to convert the value of their property into a lifelong supplementary pension. When the contract is concluded, the property becomes the property of the purchaser. In return, he pays the seller a lifelong pension. In most cases, a lifelong land registry and notarized right of residence is also agreed. The model is interesting for older people with low incomes and / or no heirs who use up the value of their property during their lifetime, but still want to stay in it.
The real estate annuity should not be confused with the reverse mortgage because, unlike the reverse mortgage, it involves the sale of property. The advantage of this model is that the annuity recipient no longer pays any major maintenance costs. Compared to the reverse mortgage, the model also tends to allow higher annuity payments.
The Deutsche Seniorenliga eV offers further information on the subject.
literature
- Marlies Brunner: Capital investment with real estate: Products - Markets - Strategies . Springer 2009, ISBN 3-834-98518-X
- Michael Opoczynski : WISO: Pension Advisor . Campus Verlag 2007, ISBN 3-593-40318-8
