Real estate annuitisation is considered an alternative to purchase and creates a win-win situation between buyer and seller. Owners who are old can use an annuity model to remain in the in their property until the end of their life and, for example, distribute a distribute a preliminary inheritance to their descendants. The buyer does not have to take out a loan from a bank for the purchase of the property, but can repay the instalments from their current income.
Real estate annuity simply explained
Demographic change in Germany is leading to an ageing society. society, which threatens to collapse the traditional pension systems. collapse. If life expectancy and thus the number of pensioners continues to rise, the younger the number of pensioners, the younger contributors will no longer be able to generate will no longer be able to generate pensions on their own. As a result, pension models, This makes pension models based on the sale of real estate attractive.
Usually, you buy a property with a one-time payment. payment of the purchase price. With real estate annuities, on the other hand, payment is made in monthly monthly, interest-bearing instalments, which are gradually paid off by the buyer. gradually. The seller can also agree with the new owner owner that he or she can continue to live in the property for a certain period of time or for life. for a certain period of time or for life. The exact annuity payment is determined is determined according to standard actuarial principles and on the basis of pension factors pension factors of the Federal Statistical Office. The free design of the and annuity contract is an advantage of financing through financing via real estate annuity is an advantage over classic financing, where the where the terms of the contract are usually dictated by the bank. In addition, inheritance disputes can be avoided because the realisation of the of the real estate assets is already regulated inter vivos.
The life annuity
With a life annuity, a considerable part of the investment in the property can be "paid back", so to speak. for the property can be "repaid backwards", so to speak. The assets tied up in the tied up in the property is recovered. In the past passed on to the next generation after the death of the owner. passed on to the next generation. This is only rarely the case today, since the the average age of the generation of heirs is currently in the mid-50s and many already own their own property at this age. For this For this reason, many retirees decide to continue to use the property for their own and to recoup the assets invested over the years by annuitising them. invested over the years. And they do so with these two models:
Temporary pension
In contrast to the life annuity, which is paid out as long as the the seller is alive, the time annuity has a time limit. time limit. The buyer can pay the purchase price in one lump sum or in instalments. paid in instalments. With this variant, too, the seller retains the seller retains the right to continue living in the property. A decisive difference is that in the case of annuities, the age and sex of the seller are not age and gender of the seller are not taken into account.
Advantages of real estate annuitisation for sellers at a glance:
It is possible to remain living in the house or flat and to and at the same time receive the purchase price instalments for the property, which are a good good supplement to the narrow pension.
The pensioner retains the right to live in the property, while the new owner takes care of the maintenance of the property.
With an annuity agreement, the seller often achieves greater total proceeds than with a one-off payment.
The pensioner can decide how long she wants to continue living in the property. she would like to continue living in the property. If the pensioner decides to do so, to move to a smaller flat or a retirement home after five years, for example. home after five years, the monthly pension is increased by the value of the the value of the previous right of residence.
Calculation of the monthly pension
First, the purchase price of the property is determined by an real estate expert. This is based on the purchase price minus further benefits on the average life expectancy determined by the average life expectancy. It should also be noted that the annuity does not deviate from the German consumer price index. With the notarial conclusion of the purchase contract, the sum of the instalments and the seller's the seller's right of residence are entered in the land register.
In order to safeguard the seller, certain obligations are also which must be fulfilled by the buyer. Among these that the buyer is responsible for the regular payment of the monthly monthly payments. A repossession of the property can also be stipulated of the property can be stipulated.
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