Investing in Life Annuities

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Property Investment is historically, and in the long term considered to be, one of the most profitable and safe forms of investment, as it is an investment in a basic necessity tangible asset. Furthermore, if to this we add the significant social dimension that Property Life Annuities have, which allows Senior Citizens to cover all of their needs and improve their quality of life by capitalising on their homes, an excellent method of property investment is achieved which helps Senior Citizens.

 

Investing in Property Annuities consists of the purchase of the ownership of the home of a person over the age of 65, who reserves the usage rights of the home until their death, at which point the Investor fully owns the property.

The purchase of ownership is usually carried out through payment of lifelong monthly instalments (Life Annuity) or during an established period of time (Temporary Annuity). Nevertheless, there are other methods of Property Annuity, as it is a flexible product which adapts to the needs of each Senior Citizen, and therefore ownership may also be acquired through a single payment of capital, through an initial sum plus the payment of instalments, or even through purchasing full ownership (Out of Home Income).

The investor will take charge of the sales expenses of the operation, the monthly payments or quantities established in each operation, and the annual expenses of the property which are inherent to ownership (Land Value Tax, unforeseen expenses and contents insurance of the home).

The investor will take charge of the sales expenses of the operation, the monthly payments or quantities established in each operation, and the annual expenses of the property which are inherent to ownership (Land Value Tax, unforeseen expenses and contents insurance of the home).

The Senior Citizen, as usufructuary of the property, will take on the ordinary community fees and bills for the home’s services (light, water, gas, etc.).

  • Because it is the investment which combines all the advantages of property investments with a significant social dimension, allowing Senior Citizens to increase their incomes through their home..
  • Because it allows you to diversify your investment portfolio through an innovative, profitable and safe property option (investing in tangible assets).
  • Because it provides great profitability.
  • Because it is a mid to long term property investment, meaning that market fluctuations do not affect it.
  • Because it allows you to set up a significant real estate property in a simple way and with little capital, without having to use bank financing when making monthly payments.
  • Because it is a guaranteed investment, as the property is acquired from the outset through a Bill of Sale before a Notary Public and registered in the Property Register. Life Annuities have been regulated by our Civil Code since 1889.

    There are two options for investing in Property Annuities:

  • Directly: as a physical or legal person, directly acquiring the properties which best suit your investment criteria through Public Document.
  • By contribution: making a Life Annuity contribution to a Property Investment Company.

    Because since 1996 we have been the leading independent advisors in Spain in this kind of operation and provide our Investors with:

  • The location of homes owned by Senior Citizens who wish to carry out these operations.
  • The valuation of the homes (Automated Valuation Model assessments, comparative analysis with market values, etc.)
  • Technical calculations of income.
  • Legal, actuarial, tax and accounting consultancy.
  • The integrated management of operations with the Senior Citizens until their completion.
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