Real estate investment: life annuity more profitable than buying on credit?

Le viager occupé permet d'acquérir un bien à un prix inférieur de 25 à 60 % par rapport au prix du marché. Mais cette plus-value ne s'ancre réellement qu'au décès de l'occupant.

Posted Oct 3, 2022 11:33 AMUpdated Oct 3, 2022 11:49 AM

Becoming the owner of a property without having sufficient cash for its self-financing and without, however, needing to take out a mortgage: this is one of the advantages of buying a life annuity. Indeed, rather than borrowing from a bank the sum necessary for the acquisition minus the personal contribution, the buyer pays directly to the seller, called the annuitant, a fixed sum then, each month, an annuity up to upon his death. It is ultimately as if the annuitant himself gave credit to his buyer.

“For 4 years, we have seen an influx of investors preferring life annuity for the simplicity offered compared to a traditional rental investment. In a busy life annuity [Il représente l’essentiel du marché, 85 % d’après les professionnels sollicités, contre 15 % pour le viager libre, NDLR], there is no degradation, no rental vacancy because the senior continues to live in his home and maintain it, says Henri-Pierre Ouhibi, founder of Senior Consulting Group, which offers to buy and sell in life . Lately, we are seeing a new wave of investors, turning to life annuity after being refused a mortgage,” adds Henri-Pierre Ouhibi.


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