Skip to content

Do you have any questions? Give us a call!

0 27 22 - 93 720
Contact Contact
de en es

Life annuity: sell your property, continue living there, and supplement your pension

If your pension is insufficient in old age or if you want to distribute your preliminary inheritance, a real estate pension is a good way to gain more financial freedom. One variant of this is the life annuity. Find out how it works here.

With a life annuity, owners sell their property—house or apartment—and receive a fixed monthly amount, the annuity, for the rest of their lives, as well as the right to continue living there. This can be for life or for a fixed period of time. For the seller of the property, this means that they can continue to live there without having to pay rent. The buyer, on the other hand, usually pays a monthly annuity to the seller. Sometimes they also purchase the property with a one-time payment or a combination of both payment options. Life annuities, which are paid as a fixed amount, are valid for the lifetime of the seller. In contrast, there are temporary annuities, where a period is specified for how long the annuity is paid.

Life annuities and rights of residence are notarized and entered in the land register as real encumbrances. Through the transfer of ownership, the buyer also assumes responsibility for the property. They undertake to pay any costs incurred, such as maintenance costs or property tax.

Reasons for a life annuity

More and more property owners in Germany are discovering property annuities for themselves. There are many different reasons for this. Some want to treat themselves to something special, such as traveling. For others, early estate planning is a priority. This makes sense, especially if there are several heirs. After all, real estate is difficult to divide. Cash, on the other hand, is easier to divide. Many real estate pensioners even have their grandchildren in mind and want to give them a good start in life by investing the money for their studies, for example.

How the pension is calculated

In order to know how much the property can be rented out for, owners need to know its exact value. Professional real estate agents determine a market-driven price. The pension can then be calculated on this basis. However, the amount of the pension also depends on which model the owner chooses: life annuity or temporary annuity, pension with or without a lump-sum payment. There is freedom of contract in this regard.

Which income model is right for me?

The terms on which you decide to sell your property depend on your individual plans. Do you need a large sum of money? Do you want to fulfill a big dream? Would you like to distribute a large portion of your inheritance to your children and grandchildren? Is your monthly pension already high enough to live comfortably? A real estate professional will advise you on which model is right for you. And they will help you find the right buyer.

Are you interested in selling your property in retirement? Contact us now. We will be happy to advise you on your options.

not found:

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.

Photo: © ArturVerkhovetskiy/Depositphotos.com
Contact Form

Are you looking for a new home? Get in touch with us!

We may already have the right property for you in our real estate database. We value personal contact and take time for you and your wishes to ensure a stress-free transaction. Contact us! We will be happy to advise you.

New form
Why a real estate agent will be indispensable in 2025: advantages and added value

At a time when the real estate market is more complex and dynamic than ever, real estate agents will remain an indispensable partner for anyone looking to sell or rent their property in 2025. Real estate agents not only offer valuable support in pricing and strategically approaching buyers, but also act as expert advisors throughout the entire sales process. A real estate agent brings more than just experience to the table. They provide a comprehensive market analysis that helps to achieve the best possible sale price. With a deep understanding of regional conditions, agents are able to identify and avoid potential pitfalls at an early stage. At the same time, they offer emotional support and relief by taking care of formalities and negotiations. This is particularly valuable at times when real estate transactions are often more than just business, but also involve emotional decisions.

The most important steps to successfully sell a house

Selling a house requires much more than just putting a "for sale" sign in the front yard. Strategic preparation is essential to achieve the best possible sale price and find the right buyer in a timely manner. Determining the market value is the first important step. A well-founded property valuation ensures that you neither underestimate nor overestimate the value, which could deter potential buyers. Experts such as those at Garcia & Co Immobilien GmbH offer many years of experience and precise analyses. Once the value of the property has been determined, effective presentation is crucial. An attractively designed brochure, supplemented by professional photographs, highlights the best features of your property. Consider carrying out minor renovations if necessary to increase its appeal. Well-maintained properties with attention to detail are more likely to attract interested parties and can have an emotional impact on those looking for a new home. Finally, you should prepare for negotiations so that you can respond to the expectations of interested parties. Openness and transparency play a major role here, because trust is an invaluable advantage when selling a house.

Top tips for successfully selling residential properties

Selling a residential property is often one of the most important decisions in a homeowner's life. Achieving the best possible price requires a well thought-out and strategic approach. First, a precise market analysis is essential. This allows you to estimate the current value of the property and skillfully use this information in price negotiations. A reliable property valuation not only builds trust with potential buyers, but also forms the foundation for all further sales strategies. Another important aspect is a high-quality property listing. Professional photos and a detailed description can be decisive in attracting the interest of the target group. In the digital age, a compelling online presentation of your property is essential. Platforms with a wide reach and a targeted approach increase visibility and maximize the chances of achieving the best possible price. Each of these steps requires careful planning and execution to ensure that the sales process is not only successful but also runs smoothly.

How do energy standards affect property values?

Modern insulation, efficient heating technology, and low energy costs are no longer just trends, but decisive factors that directly influence the value and sales potential of your property. Read here to find out why it pays for owners to invest in energy-efficient modernization in good time and how the market is likely to develop in the future.

Why professional real estate valuation? – An overview

A professional valuation when selling real estate is the basis for the pricing strategy and subsequent price negotiations with prospective buyers. Those who do not do this not only make the sale of their property more difficult, but may also end up selling their property below its value.

Living in old age or age-appropriate living?

As we get older, our expectations of our homes often change. A barrier-free bathroom, fewer stairs, or the question of whether our home still meets our current needs—many people are faced with the decision at some point: renovate, transfer, rent, or sell?

Real estate sales only with professional appraisal

Without a professional real estate appraisal, selling a property can result in financial losses. Read on to find out why a professional appraisal is so important and what advantages it offers you when selling real estate.

Getting a mortgage for real estate when you're over 60

It is often more difficult for seniors to obtain a loan, whether for purchasing real estate, renovations, or other financial projects. However, there are ways in which older people can successfully obtain financing.

Poor energy balance – what property owners should look out for

Properties with poor energy efficiency and/or outdated heating systems are becoming increasingly difficult to sell. And when they do sell, sellers have to expect price reductions. But what can owners do to prevent this?

This website uses cookies

We use cookies to personalize content and ads, to provide social media features, and to analyze our traffic. We also share information about your use of our website with our social media, advertising, and analytics partners. Our partners may combine this information with other data that you have provided to them or that they have collected from your use of their services.

Some cookies are technically necessary, while others require your explicit consent. For some cookies with consent, isolated personal data (essentially the IP address of your device) is transferred to the US, where we cannot guarantee a level of data protection equivalent to that in the EU.

To continue, you must select your cookie preferences. By selecting our default settings, you only activate the cookies required by the system, but not the additional convenience features. You must actively select these or activate them collectively via "Accept all."

Under Settings, you can enable and disable specific options.

Further information on data protection and cookies can be found in our privacy policy and legal notice .

Change settings Deny all Accept all

Settings

  • The site uses cookies to store session information. These are not read by external servers.

    All our images and files are stored in our content management system Ynfinite. They are provided from there. Ynfinite receives your IP address through the provision of the images, but this is only used for the purpose of providing the images within the framework of an http request. The data is not stored long-term.

    Further information on data protection and cookies can be found in our privacy policy and legal notice.

  • through the integration of Google Maps, map data and navigation data are made available to you as a user on our website. Several cookies are set by Google, which are relevant for Google Maps, for the Google Fonts used therein, and for other services necessary for Google Maps. Your IP address is transferred to the USA.

  • the YouTube plugin is used to load YouTube videos embedded on our website. The plugin allows videos to be embedded in the website. This involves the use of several cookies that are relevant to YouTube. Your IP address will be transferred to the USA.

    we use Google Ads to place advertisements on external websites. The data obtained enables us to tailor the advertising on our website more specifically to our customer base and to measure the effectiveness of our advertising measures. Several cookies are set by Google that are relevant to Google Ads. Your IP address is transferred to the USA.

  • We use 360° panoramic tours from Ogulo GmbH on our website. This involves the use of cookies and services—including those of third parties—that are relevant for the provision of this service by Ogulo GmbH.