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Buying a life annuity can be a good bet. This solution allows buyers to purchase a property at a discounted price. If you have successfully invested, tell us.
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– What is the point of buying a life annuity?
The purchase of real estate through life annuity remains a minority in France (0.5% of transactions in 2023), but this method of acquisition has further increased by 6% between 2022 and 2023. It must be said that the operation should become more democratized with the aging of the population, because it allows sellers to obtain upon signature the payment of a nice nest egg (the “bunch”, i.e. 20 to 30% of the value of their property), and also, in certain cases, additional income (in the form of an annuity) until the end of their life. For buyers, it is the opportunity to become an owner with a discount of between 30% and 50% of the price of the property.
Sale of the home for life annuity: why this couple made a very good financial deal
For an individual who wishes to invest in real estate, the operation can therefore prove particularly lucrative. This is the case if the buyer buys, for example, a property with a large discount and a low credit rate, all in a city where real estate prices are increasing. He thus achieves a strong leverage effect which he can realize by reselling the property or renting it out.
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An operation with potential leverage
However, we must not forget that part of the success of the operation will depend on an uncertain factor: the age of death of the seller, called “annuitant”. In fact, the purchaser (the annuitant) only obtains full ownership of the property – that is to say the possibility of living in it, renting it or selling it – upon the death of the annuitant. The later the latter dies, the less profitable the operation becomes, since the borrower must generally pay him an annuity for life, which increases the cost of the acquisition.
Have you completed a good life annuity transaction? Have you purchased a property at a reduced price in a city where the price of stone is rising? If this is your case or that of one of your loved ones, do not hesitate to contact us. Tell us about the birth of your project, what type of life annuity you opted for, and to what extent the operation turned out to be successful.
To testify, write to us at the following email address: [email protected]. With this call for testimonies – which, let us point out, will remain anonymous – Capital.fr gives you the floor.
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