The life annuity sector is experiencing renewed interest. For sellers, it’s the assurance of keeping their property and receiving an annuity, and for buyers, it’s a way of investing their money for the long term.
The calm of the sea and the tranquility of the city center are unstoppable assets that appeal to many retirees. Paul and his wife Colette bought their apartment in Sables-d’Olonne (Vendée) ten years ago. This little gem takes a heavy toll on their budget. Between them, they only receive 2,000 euros in retirement. A few months ago, they therefore decided to sell it as a life annuity. “Having no direct heirs, we thought that basically, the life annuity allowed us to immediately receive a supplement to retirement, to stay in our apartment as long as we could take advantage of it. It was something very interesting“, Explains the retiree.
Make your savings profitable
The sale is made at a reduced price, i.e. -40% of the real value of the home, but with an annuity of 850 euros per month, which the retired couple will receive for life. This option is chosen by more and more French people. The pandemic could be the reason. Some seniors would have realized that they wanted to live in their home with their bearings, and not go to a retirement home. On the buyer side, it is a simpler way to become an owner and to monetize his savings.