Enjoying your property - your own home must be paid off in your old age
Real estate as a pension is not just now in fashion. It has always been the idea of buying your own little house that you are protected in old age and the children have a legacy. But the idea can also have some pitfalls and even lead to ruin in the worst case. In order to minimize the risk, the following tips may be helpful.
Age Appropriate Living
Already when buying a property should be paid to an age-appropriate construction: no thresholds and important rooms must not be accessible via a staircase. So you save as an owner expensive and complex age-appropriate conversions.
For the borrowing a bank with favorable conditions should be sought. A help is for example the pages of www.kredittestsieger.org. In this way, it is now possible to find a bank for a mortgage loan that has favorable interest rates.
When financing, repayment must be in the foreground so that the property can be repaid as quickly as possible. In order not to reach the financial limits when retiring, the house should already be 90 percent debt-free by this time.
The second rule for real estate as a retirement plan is quick repayment. The property should be paid off as soon as possible - in any case, it must be 90 percent debt-free at retirement. Because if you have to pay off in retirement with less financial resources than active working hours, you will quickly reach your financial limits.
Anyone who buys a home today should definitely remember that probably just in need of refurbishment when you retire. It is therefore advisable to create reserves in addition to the repayment installments on an account or in a savings fund. Because renovations before retirement should of course not be paid from the same pot, because they come in addition to the homeowner.
When buying should be paid to the size of the property, because for many people, she is often too big and old The house becomes a block on the leg. It would make sense to include a granny flat, which can be rented later. Then the house has an age-appropriate size and it can through the sub-letting additional income flow into the pension fund.
It has always been this way and is not new: the value of real estate in the country are not nearly so high like in a big city situation. In practice this means investing in the best city locations - if you can afford it. Thus, the house or apartment can be sold at some point at a good price, which secures the retirement.
Longest possible loan term
The real estate financing should also be completed as long as possible, so as to secure his interest rate. At the same time, the real estate owner can remain flexible at the same time. Even those who, for example, commit themselves to an interest rate for 30 years can nonetheless terminate the credit agreement unilaterally after ten years because of falling interest rates.
When purchasing a property, location is one of the most important aspects. The location must be conveniently located to stay mobile. It is also an important criterion for tenants if parts of the house or the whole house should be rented at retirement.
At least two percent should be a repayment, so that the house is actually paid off until retirement. But there is also an alternative with an investment savings plan, in which the interest savings are put in order to secure the remaining debt. For example, real estate owners can simultaneously repay their debt after the repayment term, thus avoiding higher loan and mortgage rates.
Raise money in old age
If the house can hardly be salvaged and the upcoming refurbishment can not be paid, then those affected can avail themselves of the following options:
- Sublet your property
- Reverse mortgage
- usufruct right
Sub-let : Not all houses and apartments are suitable for rent. But those who get into financial difficulties in old age can definitely try to rent a room or a separate apartment. This will generate additional revenue that can go into the redevelopment of property.
Reverse Mortgage : If the house is already largely disbursed, but the money is otherwise inadequate, a real estate owner can also apply for a loan on the property. This is called a so-called reverse mortgage, which, however, should only really be used in distress. Because this is on the one hand the financing of the renovation or the evening of life secured, but the heirs receive nothing. If the real estate owner dies, the property goes to the bank.
Annuity : It's the last chance your house or apartment will be lost, but also a chance not to end up on the street. It's about the sale of your own property in the form of an annuity. The buyer assumes the risk in future and pays the cost of the property and the owner a monthly annuity. For the annuity, the owner receives a lifelong right of residence in the land register.
usufruct : In doing so, the buyer grants the owner a lifelong right of residence. In the case of both of the above variants, however, the following applies: If the former owners or sellers die, the house goes to the new buyer and the heirs are left empty.
With the purchase of a property, a sensible pension can be taken. Most people think about it not just because they start a family, but because they want to make provision for old age. Those who plan to do this and follow some rules can retire safely.
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