How property owners can supplement their pensions
Better pensions through real estate annuities
There are now many programs seeking a solution to declining pension levels. One of these is real estate retirement. Here, pensioners sell their property but retain a lifelong or temporary right of residence. The purchase price is usually paid in monthly installments, which the resident can use as a pension. The rent that they have to pay to the new owner is already deducted from this. This model is particularly practical for pensioners who do not intend to pass on their property to their children. There are various options available with regard to payments. Pensioners can decide for themselves whether they would prefer a large one-off payment or higher monthly payments.
Living off the money from the sale of real estate
If you are planning to move to a smaller, age-appropriate home anyway, it makes more sense to sell your house. A smaller home usually costs less, and the rental or purchase costs can be covered with the money from the sale. In addition, there is still money left over for living expenses. It is important for sellers to invest the money wisely so that they can live on it for as long as possible.
A good way to trade your own house for a smaller apartment is through a home exchange. After all, there are also many young families whose apartment is becoming too small for their children and who would be happy to have the extra space in their own home. The best thing to do is to contact a real estate agent. They will balance the interests of both sides and find suitable exchange partners.
Earn money by subletting
In larger cities with lots of students and tourists, many seniors have discovered temporary accommodation platforms such as Airbnb. Here, they rent out the empty rooms of their now grown-up children. This not only provides a good source of additional income, but also ensures many social contacts and an exchange between generations. Since you are letting strangers into your own four walls, it is important to check the tenants carefully before agreeing to anything. Online platforms allow you to check the tenant's reviews, for example. It is also essential to observe the legal requirements. Many cities have a law prohibiting the use of residential property for other purposes. The income from renting out your property is also taxable.
Would you like to supplement your pension but are still unsure which of the options listed here is best for you? Or do you have specific questions about one of the options? Then please feel free to contact us.