Liquid the ages: How to make your house against a pension exchange

A property is considered by many Germans as a retirement number One. You can live in it as a pensioner, rent-free. But there is one Problem: The property does n

Liquid the ages: How to make your house against a pension exchange

A property is considered by many Germans as a retirement number One. You can live in it as a pensioner, rent-free. But there is one Problem: The property does not provide additional liquidity, if the pension is not sufficient. That's why old people are sometimes faced with the question of whether you should make your property to money - in particular, if there are no heirs.

Around the property, the age of the people is a financial industry that advertises to buy their houses or apartments, and a life-long pension to convert. These aspects you should consider before making your decision.

How does the model work?

The service provider offers senior citizens to sell their property to an Investor. It's a life-long additional pension or a one-time payment. Although the house no longer belongs, you are assured, nevertheless, contractually, that they are allowed to remain in the house.

the real estate market of houses and apartments in FOCUS classifieds

As the business is profitable?

It is a type of bet on the death of the old man. The new owner must ensure that the pension is enough for a lifetime. They live as pension recipients longer than the Investor expected, he pays for it. Therefore, the buyer build, certain reductions in their pension calculation: for example, a longer life expectancy, and decreases in the monthly pension amount, because the total distributed sum over a longer period of time.

Lives of the seller after the Transfer is still very long, he benefits from the business. Then he can live in his old house many years, rent free. The owner of the house dies, however, shortly after the conclusion of the contract, the buyer makes the better deal. He can then freely dispose of the property and usually with a profit – to sell it.

What is a "donors pension"?

something to offer the Catholic Foundation Liebenau and German pensions Property own home owners from the age of 60 years. You acquire their apartment and pay a monthly supplementary pension with a guaranteed right of residence. In principle, this is nothing more than a Retirement. Seniors should be in the land register the right of usufruct enter. This is to make sure that you can use the house for life. Only a living, it was agreed right to void this if you need to move into a nursing or old people's home. After that, the Ex is not allowed to rent-the owner of the house then once more, in order to generate revenue. Everything you know about your pension

Our PDF guide explains on 100 pages the answers to all the important questions around the topic of retirement. Plus 58 Pages Of Forms.

PDF guide

what are the pitfalls of Retirement?

you is calculated in the rule for the seller only if his life expectancy is high. In addition, it is difficult to estimate because of the many options is often difficult, as reliable a provider is. Its calculation should be on the heart and kidneys checked.

Clarify before a decision these questions:

the estimation of real estate value, Is lens? the
  • Have taken into account all the benefits of the property adequately (value)?
  • What are the mortality tables in the calculation are based on? The Federal Statistical office? Or for the seller of the insurance, the less favourable economic (higher life expectancy)?

With each point, in which the buyer is preferred, gets the seller less money paid out. Take a look at the contracts and clauses carefully, and let this best of a lawyer.


What are the Alternatives?

Who lives in the house, but little Cash, one should first of all make a cash-in-fall. Expenditure can be saved? There are perhaps ways to increase the income, such as through a sub-lease? You can also ask your Bank if they will grant you a reason, education loans, or an existing one is increasing.

is not a solution, it is better to sell the property yourself. With the achieved sales price, you can buy a cheaper apartment or a rented apartment numbers. Only those who absolutely want to remain in their own home, should think about Retirement. For this, he must be willing to take the economic disadvantages.

a sale with lease Back Is more attractive?

In this variant, sold the house and the monthly rent payments back purchased. This is often cheaper than the Retirement. Although you do not get the full purchase price paid. The back is but hire registered against payment of a month's rent in the land register.

However, their security is not as big as at the time of Retirement. You only have a contractual claim against the new owner and are also subject to the pitfalls of the tenancy law. You pay your rent on time, can the new owner will terminate.

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you Can only sell the land?

Yes. There are deals where you sell the property, but the owner of the house remain. You can sell it then continue to and inherit, but they must pay a ground Rent. After the end of the contract, the property owner takes the house and pays the owner a compensation. The consumer advocates warn, however, against this model, since it is for seniors to be even worse than a credit.

I Can keep my house completely?

this is Also available. This variant operates under the keyword " reverse mortgage " - is, unfortunately, hardly offered. In this case, the elderly remain the owner of your property. The Bank gives you a loan, from the monthly pension payments in a predetermined amount be disputed. Dei's pension is calculated so that the loan amount is sufficient to live at the end.

After the death of the property owner, the property is sold and the loan repaid. In other countries, this model is relatively popular in Germany, it has not been set but. Display

Date Of Update: 06 March 2020, 09:00