Real estate investment offers numerous opportunities for generating passive income and building wealth. Bare ownership and life annuity are two concepts that need to be understood together, and which are attracting increasing interest.
These two concepts provide a sound basis for effective investment strategies .
Bare ownership is a long-term process that offers both buyers and sellers opportunities to optimize their financial situation.
Nue-propriété refers to the buyer's right of ownership of a property, without having full enjoyment of it. In other words, the buyer buys the property but is obliged to temporarily transfer the usufruct to a third party. The usufructuary has the right to occupy the property for a fixed period. At the end of this period, the buyer recovers full ownership of the property.
- Plan and facilitate the management of your estate: Structure the transfer of your assets to avoid problems for your heirs in the event of future joint ownership.
- Optimize your tax situation: reduce the value declared for the IFI, reduce gift and inheritance tax...
- Increase your purchasing power with additional capital and income: increase your financial resources to get more out of life and its opportunities.
- Protecting your spouse in the event of an accident
- Donate to your children, grandchildren, relatives or associations
- Reduce your debts and repay your loans: Use the funds from the sale or life annuity to pay off your debts and current loans.
A life annuity is a real estate transaction involving a seller (usually an elderly person) and a buyer (the debirentier). The seller transfers his property to the buyer in exchange for a life annuity and the right to use and live in it until his death, a bouquet* or both. In this way, the seller retains a right of usufruct over the property for the rest of his or her life.
* The "bouquet" is the sum of money paid by the buyer at the beginning of the life annuity transaction. It is generally part of the total purchase price agreed for the property. Its amount may vary according to various factors such as the value of the property, the seller's age, current life expectancy, etc.
Right to occupy the property: The seller benefits from his property until his death. This saves you the trouble and expense of searching for a property.
Additional income for the seller : With a viager, the seller can benefit from a regular life annuity or bouquet, which improves his or her financial situation and secures his or her future. The combination of the initial bouquet and the periodic annuities constitutes the total payment made by the purchaser under the life annuity scheme. The bouquet is a way for the buyer to reduce the total amount of annuities to be paid, while for the seller it offers a source of short-term liquidity.
Financial security: In the case of an annuity, the seller is guaranteed a regular income until death, regardless of the length of his or her life. If the seller has received a bouquet, he now benefits from an advantageous capital sum.
Lack of day-to-day management of the property: Repairs, maintenance and property-related charges are all responsibilities that fall to the buyer.
Are you considering a short- or medium-term investment strategy, but don't yet know whether to opt for bare ownership or life annuity? Our teams are at your disposal on 01 47 20 30 00 for any questions you may have about this blog article.
