Lighting: the false good idea?|Les Echos Start

The idea is intellectually attractive.Buying real estate from an elderly person and paying an annuity until they died is similar to both a good financial move and an ethically questionable bet.This is the whole principle of life annuity.

Its advantages have something to make think, such as the discount on the sale price (due to the presence of occupants) and the duration of engagement, shorter in theory than that of a conventional mortgage.What to seduce first-time receivers who may find it difficult to finance their first acquisition and rental investors, attracted by the idea of improving the profitability of their operation.But watch out for mirage.

Some are embarrassed at the idea of "betting on death", others are afraid of falling into a financial abyss.If the former can negotiate with their conscience, the latter will have more difficulty reassuring themselves.Because yes, life annuity is an uncertain option.

Accept uncertainty

The only certainty you can have with the life annuity is uncertainty.No matter when you sign, you don't know when you recover the enjoyment of the place.

In the majority of cases, the seller still lives in his accommodation: it is called the "occupied life".The buyer must therefore wait for him to release the property to be able to settle there or rent it.Death is not the only way out, he can also go to a retirement home.

But that does not change the situation much because it can flow several years before you can deposit your boxes in your new "at home".Beyond the deadline, it is above all a question of adequacy with your needs and your lifestyle.The accommodation you need at 30 years is not necessarily the same that you will need at 40 years and a fortiori even under 60 years.

In the same logic, if you want to make rental, project yourself into an indefinite horizon is perilous.Wanting to invest in the rental during your young years is one thing, but it is possible that the desire has completely passed to you when you recover the property.Nothing worse than ending up with a house to manage when leaving backpacker around the world.Signing a lifelong lease is a bit like doing spring cleaning: you know when you start, never when you finish.

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Household, there will be surely needed at the time of the release of the premises.And sometimes even decoration, even downright work.You may have visited the good before signing the sale, you do not know in what state you will recover it for years later.Your predecessor may very well have held it carefully like not having made a lot of effort to keep it in condition.

A too expensive risk

All these uncertainties make a real risky bet.The more time passes, the more you pay for the seller and the more your budget rises.Not to mention any reproductive (or decoration).To the point sometimes to completely cut the price of the price at the entrance ... and therefore to question the profitability of the operation.The promise of the good deal can thus quickly fly away.The risk of putting your finger in a financial gear is real.It is therefore better to have full scholarships to support it.As in any bet, we can lose.

The free life annuity track

For those who always want to get into the life annuity, a little less risky alternatives exist.Free life annuity is a good option to delete some hazards.It will allow you to settle in the accommodation as soon as the seller has already released the premises.It is a good way to limit the deterioration of the property by time.And above all, you will not have to pay the rent of a second home while waiting to be able to move.The seller can go and pour happy days in Bora Bora.HAPPY END, everyone is happy!

And if the galley of logistics scares you but the theme still tickles you, know that certain real estate investment funds have specialized in the acquisition in life annuity.Trusting professional managers can decrease the risk (without making it disappear), but also has a cost that pays cash: these funds charge costs that can tarnish the profitability of your investment.

You will understand, the life annuity is complicated, does not go who wants.The risk is high to the point of discouraging more than one budding investor.Especially since there are less risky solutions to buy your first apartment.

To note

For readers of Echos Start, our partner Virgil, a real estate start-up that helps first-time buyers to acquire good in big cities by investing alongside them, regularly gives practical advice to succeed in your purchase.

- Successful purchase offer: a turning point in your real estate project

- Loan loan: three tips for putting the banker in his pocket

- Real estate: What contribution do I need for a first purchase?

- Problems to anticipate before a first rental investment