German pensions are becoming increasingly scarce. For many seniors, state payments are just enough to live on. Fewer and fewer senior citizens can maintain their standard of living. Not to mention fulfilling their wishes for retirement. Real estate owners can change this through real estate retirement. You can find out how this works here.
What is real estate retirement?
Stay in your own property and improve your pension at the same time. A dream that becomes reality through real estate retirement. With real estate retirement, senior citizens sell their property, but still retain a right of residence. This can be either lifelong or temporary. This depends entirely on the pension model. The sellers can also decide whether they prefer to receive a high one-off payment or a monthly pension. For senior citizens, this is an ideal way to supplement their pension, but for buyers it is an interesting investment.
How is the pension calculated?
The basis for calculating the pension is the value of the property. This is determined by a professional expert opinion. The further calculation then depends on the chosen pension model. Here, sellers can choose between a personal pension and a temporary pension. In addition, it is also possible to receive the complete price in a single payment and at the same time receive a lifelong or temporary right of residence.
Life annuity or temporary annuity?
With a life annuity, the seller receives a one-off payment and a life annuity. The amount of the annuity depends on the one hand on the amount of the lump-sum payment and on the other hand on the statistically expected remaining life of the seller. In addition, the seller can choose whether he wants a lifelong right of residence or one that is limited to a certain period of time. This option is also suitable for a temporary pension. This model also consists of a one-off payment and a monthly pension. This is also limited to a certain period, which is fixed.
Which retirement model is suitable for me?
Which model makes the most sense depends entirely on the individual plans of the seller. Do you now want to make a dream come true with a large one-off payment or give this money away to your children or grandchildren? Is your pension high enough in itself to make a good living from it or are you dependent on a larger sum? Are you planning to stay in your property for the rest of your life or are you planning to invest the money that you receive through the sale in a senior-friendly accommodation? These are just some of the questions you can ask yourself to find the perfect model for you.
Are you interested in real estate retirement? Contact us now for a consultation. Together we will find out which model is best for you.
Photo: © Jenny Sturm – stock.adobe.com