A market that struggles to seduce
Buying a home in life can be a profitable investment for individuals. However, the idea of wagering on the death of a senior to acquire real estate does not really appeal to the French. According to the latest known figures, only 4,000 to 5,000 life-lease transactions were realized in 2016. These sales represent only 1% on the old real estate market and these are mainly realized in France de Elli and on the Azure Coast. Lifetime purchase can be done in many ways: it can be free or busy. The concept of a busy life annuity is to buy a home by paying a monthly rent to the seller for the duration of his life. The buyer then called the débirentier can occupy the housing only at the time of the death of the seller who is called the annuitant. The main advantage of this type of investment is that the buyer ‘s expenses are staggered over time and the purchase price of the good will be reduced. Indeed, when signing the deed of sale, an initial sum of money called the bouquet can be paid directly to the annuitant. The higher it is, the lower the life annuity to be paid. With regard to free life, the seller has no right of habitation or usufruct.
The purchase of bare ownership to boost this market
In order to make this market more attractive, new solutions have been devised, such as the possibility of acquiring the bare ownership of a dwelling through a dismemberment of property which corresponds to 50% to 70% of the market value of the property. In this case, the annuitant agrees to occupy the dwelling for a defined period of between 10 and 20 years. A guarantee is then offered if the seller decides to occupy the premises after the expiry of the contract and the insurer will pay a return to the buyer.