What is the life annuity?

The life annuity is an investment to build a real estate asset in very attractive financial and tax conditions and with reduced fees. It is also an investment considered by the public authorities as having a strong social and societal stake. The particularity of this acquisition is that the investor becomes the owner of the property, when signing at the notary, having a cash portion, called BOUQUET, and a RENTE for life to the seller. Contact www.estatenetfrance.com. Occupied life annuity investment, which accounts for the vast majority of transactions, is similar to a non-taxed real estate investment that is very secure and offers high returns since the annuitant becomes, in a way, the “tenant” of the next few years.

Life annuity with bouquet

In 9 out of 10 cases, the life annuity relates to the principal residence of the seller who continues to occupy it. He reserves the right of use and habitation that allows him to stay in the place until his death. Main disadvantage, the buyer can not take advantage of the property acquired for many years. He must therefore not only have capital to invest, but also comfortable (and stable) incomes to pay the rent. In case of unpaid invoices, the sale will be canceled and the sums paid will remain with the seller. life “free” allows on the contrary to dispose of the housing immediately. As a result, the buyer can rent it for income that covers all or part of the annuity payable to the seller. But they are very rare and focus on small areas. In addition, they cost more than a “busy” life because the buyer pays for the immediate availability of housing. Unlike a financially classic property purchase, the purchase of a good life annuity is, in principle, twice. A fraction, the bouquet, is payable in capital at the signing of the deed of sale at the notary. Discover more information about Villefranche real estate. Determined by the seller and the buyer, this payment is not mandatory. However, it is very commonly practiced. Its amount is generally between 10 and 40% of the estimated value of the property sold. It depends mainly on the needs and aspirations of the seller. Most often, he needs income to complete a retirement too thin, and he is content with a small bouquet to increase his income. But he may also want to immediately obtain significant capital to carry out a short-term project.

Invest in real estate in life

The life annuity is more for investors than for first-time buyers. It is necessary to have one’s own house and to be able to deprive oneself of a portion of one’s savings for many years before considering such an investment. Attention, in case of default of payment, the service life is considered as obsolete and all sums committed (the bouquet and monthly payments paid) definitively lost.

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