The Côte d'Azur offers many prestigious cities for investment. But is life annuity really an option worth considering?
First of all, life annuity allows buyers to become property owners without having to pay a significant capital upfront. In this arrangement, the buyer pays an initial lump sum (the bouquet), followed by monthly payments to the seller for life. This flexible financial solution is particularly attractive for those who wish to invest in real estate without depleting their entire savings.
Another advantage of buying a property through life annuity is the ability to acquire real estate at a discounted price. Life annuity is an ideal solution for elderly property owners who wish to remain in their homes while benefiting from a capital sum and a pension to improve their retirement.
Furthermore, life annuity transactions are exempt from property tax, which represents a significant fiscal benefit for buyers. Life annuity also allows for the diversification of an investment portfolio by adding a stable and profitable real estate component.
Thus, buying property through life annuity offers numerous benefits, especially in our charming Mediterranean city.
Did you know that the name Sainte-Maxime originates from the monks of the Lérins Islands, who played a major role in the city’s history? According to legend, these ecclesiastics named the city after one of their saints: Maxime. This figure, the daughter of the Count of Grasse, Lord of Antibes, had a noble origin but chose to dedicate her life to religion, renouncing luxury and wealth.
This historical background adds a special dimension to life annuity purchases in Cannes and its surroundings, continuing the legacy of a city that has embodied values of faith and humility for centuries.
Sainte-Maxime is not only a popular tourist destination but also benefits from a thriving economic environment. With its prime location on the French Riviera, the city boasts an attractive economy linked to tourism, real estate, and maritime activities—making it a perfect place to invest in life annuity.
Moreover, the tourism sector is vital to the city, attracting numerous visitors with its beautiful beaches, sunny climate, and diverse leisure activities. This tourist influx creates employment opportunities in hospitality, restaurants, and local commerce.
At the same time, Cannes’ real estate market is continuously evolving, boosting job creation in construction and real estate sectors. Investing in life annuity in Cannes and its surroundings aligns perfectly with this dynamic, allowing investors to contribute to the region's economic prosperity.
Beyond its economic appeal, Cannes is also rich in culture and gastronomy. The city offers a wide array of cultural events, festivals, conventions, and concerts throughout the year.
If you are seriously considering buying a property through life annuity in Cannes and its surroundings, or selling your property under such an arrangement, Agence Immo 06 is here to assist you. As a specialized agency in life annuity, bare ownership, and term sales, we provide our expertise and experience to guide you through every step of the transaction.
We will be happy to welcome you and advise you on our life annuity offers. Our strong local presence ensures high-quality support and in-depth knowledge of the Cannes real estate market.
Purchasing a property through life annuity in Cannes and its surroundings offers numerous financial and lifestyle advantages. With our agency as your trusted partner, you can confidently consider this real estate investment option in this beautiful Mediterranean city. Contact us today to start your life annuity project.
The primary advantage of selling your property through life annuity is the ability to continue living in your home for the rest of your life. This is particularly true for occupied life annuity, mixed life annuity, term sales, or bare ownership sales. It is worth noting that occupied life annuity is the most well-known and common form, accounting for about 80% of life annuity sales.
In most life annuity sales, the seller receives both an initial lump sum (bouquet) and a monthly annuity. The bouquet is paid at the time of the sale, representing an important capital amount, while the annuity provides monthly payments for life, ensuring additional income and preserving purchasing power.
By selling your property through life annuity, you are no longer the owner and are therefore exempt from property tax (which is now the buyer’s responsibility). Additionally, depending on the agreement, the debtor (buyer) may also be required to cover other expenses and maintenance costs. Our experts can provide guidance on these conditions.
It is not widely known, but if the seller retains the usufruct of the property, they can continue to use it as they wish, including renting it out if desired.
Another major benefit of selling through life annuity is the ability to protect a surviving spouse. The annuity is fully reversible for the spouse and is also exempt from inheritance tax. However, this reversibility clause and its conditions must be clearly specified in the contract. Our agency, Viagimmo, can help you structure this protection to ensure a secure and worry-free retirement.
Independence is a key benefit of life annuity for sellers. As we have seen, this type of transaction provides financial freedom but also, through mixed life annuity, ensures continued independence. With this type of arrangement, the seller and buyer share the same property, which is usually divided into two units. For instance, the ground floor of the house may be occupied by the seller, while the buyer resides on the upper floor. They can also provide mutual assistance, creating a real bond of trust.
In most cases, the seller no longer has to pay property tax or cover major repairs, which are now the buyer’s responsibility (as stipulated in the contract binding both parties). Moreover, depending on their age, the seller benefits from significant tax reductions on the annuity received:
Up to 49 years old: 30% exemption (only 70% of the annuity is taxable).
From 50 to 59 years old: 50% exemption (only 50% taxable).
From 60 to 69 years old: 60% exemption (only 40% taxable).
From 70 years old and above: 70% exemption (only 30% taxable).
Finally, another fiscal advantage of life annuity is that the initial bouquet is not taxable, provided the property was the seller’s primary residence.
While life annuity offers numerous benefits to the buyer, it is important to be transparent about some potential drawbacks.
As the occupant of your property, much like a tenant, you are responsible for paying housing tax. Additionally, you must handle general maintenance, repairs, and regular charges for the property. However, these conditions are specified in the contract with the buyer, and certain provisions can be negotiated to make the agreement more beneficial to you. The allocation of costs and taxes remains flexible and can be adjusted on a case-by-case basis.
Despite its many advantages, another drawback of life annuity is the inability to rent out the property unless you retain the usufruct. If you do not have usufructuary rights, you cannot rent out the property.
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