Life annuity – What is it?
Life annuity means a constant payment of a fixed amount for life. In the case of a real estate annuity, retirees are thus in a position to sell their property during their lifetime without any loss in value, while still being able to live in their property or rent it out elsewhere. Instead of a one-time purchase price, the seller receives a monthly annuity payment from the buyer as a retirement provision and, depending on the agreement, a notarized lifelong right of residence in the formerly owned property.
Life annuity – A good solution for financial improvement?
While retirement income in the form of statutory pension increases hardly rises noticeably, the value maintenance costs for real estate owners remain high into retirement. In addition, there are other costs such as care expenses and insurance, which are a real test of endurance, especially for financially weak home or apartment owners, and further reduce the already low retirement income. If the property then requires extensive renovation or refurbishment during this difficult economic period, there is often a lack of capital. In this case, real estate annuity is a good solution to increase monthly income and continue to use the familiar premises.
Life annuity – What amounts can be expected?
The exact amount of the annuity depends on both the value of the property to be sold and the age of the seller. As a rule, life annuities range from around 500 to 1000 euros, but some can also be in the low to mid four-digit range.
Life annuity – What are the costs?
By using the life annuity in the property you formerly owned, you receive a right to live there for life and are thus not subject to termination. Like a tenant, however, you are responsible for running costs such as electricity, heating or garbage charges, but you pass on the responsibility and payment of upcoming renovation, repair or refurbishment measures in full to the buyer.
Life annuity – What are the advantages of a real estate life annuity?
Taking advantage of an annuity offers you, as a property owner, the opportunity to stay in your property in old age without having to worry about the subsequent costs. Another advantage is that the monthly annuity paid means a financial plus, allowing you to supplement your retirement income, make important payments if necessary, or spend the money on home care.
Would you like more in-depth information on the subject of life annuities, the anticipated amounts and your advantages as a property owner? We at WEISS IMMOBILIEN in Hamburg will gladly advise you regarding your real estate annuity and reliably support you with your real estate annuity.