The issue of poverty in old age has long been on the minds of Germans. According to a study by the German Institute for Economic Research, one in two 55- to 64-year-old workers will not receive enough pension to maintain their current standard of living. An average of 700 euros a month is said to be missing. For real estate owners, there are exciting opportunities to supplement the state pension.
Better pension through real estate annuitization
Meanwhile, there are many programs that seek a solution to the declining pension level. One of these is real estate annuitization. Here, retirees sell their property but retain a lifetime or time-limited right to live there. The purchase price is usually paid in monthly installments, which the resident can use as a pension. The rent he or she must pay the new owner is already deducted from this. This model is particularly practical for retirees who do not plan to bequeath their property to their children. As far as payments are concerned, there are various options here. Retirees can decide for themselves whether they would prefer a large one-off payment or higher monthly payments.
Live on the money from the sale of real estate
For those who plan to move into a smaller, age-appropriate apartment anyway, selling the house is a more viable option. A smaller apartment usually costs less and the rental or purchase costs can thus 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 well so that they can live on it for as long as possible.
A good way to exchange your own house for a smaller apartment is, for example, in a so-called Apartment exchange. After all, there are also many young families for whom the apartment becomes too small with the children and who are happy about the additional space in their own home. For this, it is best to contact a real estate agent. He or she will match the interests of both sides and find suitable exchange partners.
Earn money by subletting
Especially in larger cities, where there are many students and tourists, many seniors have discovered temporary housing platforms like Airbnb for themselves. Here they rent out the empty rooms of their now grown-up children. This not only brings a good extra income, but also ensures many social contacts and an exchange between the generations. Since you are letting strangers into your own four walls here, it is important to check the tenants carefully before making a commitment. On online platforms, for example, you can look at how the tenant's ratings turn out. In addition, it is essential to observe the legal requirements here. In many cities, for example, there is a Zweckentfremdungsgesetz. The income from the rental is also subject to tax.
Do you want to supplement your pension and 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.
Photo: oneinchpunch
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