Sell annuity or eats mortgage?
There are several ways for seniors to their income to thicken when they are willing to cede their home. Mark Van de Woestijne put some possibilities at a glance.
Are the perfect solutions for the “poor rich”, namely the older person, who owned (one), but that should life of a low monthly income (pension)?
Who is willing to donate his house does have some possibilities to its revenue to thicken.
The childless elderly, who earlier were especially made use of. More and more realize also the children that their parents are entitled to a more comfortable life in exchange for their property.
Mark Van de Woestijne put some possibilities at a glance.
First of all, you can of course just sell your property. Usually the buyer will the good wish to inhabit, so the seller itself further on the rental market is designated.
The seller will have to take account of the fact that he now has its own capital, but that this should be sufficient to allow him to provide lifelong an additional income, but also to pay the rent.
Possibly you can only sell the naked ownership and usufruct keep themselves. It is more difficult to find a buyer, who should invest money without use of the dwelling to be able to make yourself or without a rental price for to receive.
The risk is that life in ordinary sales of (one of) the sellers lasts longer than his money.
When selling annuity is usually sold on the bare ownership and conservation you as seller (life-long) usufruct. The buyer undertakes to you a fixed monthly sum (interest) to pay to you (you) death, instead of the immediate and full payment of the real estate.
In this way ensures you a lifelong fixed, monthly income and know this exactly how much money you monthly may underutilisation without the risk that your life lasts longer than your money.
This is immediately a heavy rentier problem solved, since you are sure of a fixed income, how long you live …
That risk is transferred to the buyer of the real estate, since he cannot know how much he will have to pay in total, since no one can foresee how long the seller of his life and interest will enjoy. He must consider the annuity purchase as a long term investment with option on important gain on premature death of the seller.
The proper evaluation of this investment can only be made afterwards.
An annuity is based mostly on the head (body) of a person, such as a single.
Nothing prevents multiple people-in practice typically married couples or undivided owners-together “sleeves” to form on which the interest is established. Then it will be described clearly, what with the interest happens, after the death of one of them. The interest can be dropped, be transferred in full or in part on the survivor (n).
In Belgium it can still not, as long as the mortgages Act is not amended, but the Government feels there for the reverse mortgage-such as those in Netherlands-also called mortgage, also eats exists with us.
The principle of reverse mortgage is that the bank Gets the private of a sum of money with his own House as collateral or a part of it. He will adjust the amount borrowed, plus interest must repay in the event of the death or move to a retirement home.
The risk is not imaginary that someone’s got capital fully exhausted before his death and that the dwelling than by the bank is sold, making him than financial in trouble. The risk that the heirs should pay the deficit is not imaginary.
Now the problem of the ageing focuses more and more, they can nevertheless rest assured that they have a nest the thirst.