Annuity Insurance, Reverse Mortgage and Partial Sale
The annuity insurance is the best model for the real estate pension. The house is sold and the owner receives a lifelong right of residence as well as a monthly payment or a one-off payment. The property value and the age of the owner determine the amount of the payments.
The reverse mortgage is a bank loan to be paid off in your life time. If the owner of the property dies, the loan is repaid by selling the house.
In the case of a partial sale, a maximum of half of the property is sold – normally for a one-off payment. The owners are obliged to pay rent for the use of the half sold. In the case of the death of the owners, the heirs normally receive the right to purchase the house.
Selling and Renting is often the Better Solution
Remain in your own home while earning an income from it at the same time!
This sounds very tempting to many people. But there are also disadvantages. The contracts are complicated and the contracting partner parties charge premiums for the risks they are taking. This means: The owners will receive less money than they would with a classic sale. In addition, the responsibility for the maintenance of the property is still in their hands. This could quickly become a burden, especially for older owners.
Those who would like to benefit from the current high real estate prices and be free of the obligations of ownership should consider selling their property. The timing is good: Demand is high and prices in the Oder-Spree district have been steadily rising in recent years. The sellers may then pay rent to remain in their own home or rent another location. Maybe a location that is more suitable for the elderly. Renters are not responsible for maintenance and additional responsibilities of an owner. It has been our experience that it is more advantageous to sell than rent your own property.
Advice for Owners
We would be happy to advise you about real estate pensions, accompany you through the entire real estate sales procedure and offer further assistance in your search for a suitable apartment for your age group.