Report from TF1’s 8 PM News on Thursday, January 27, 2022. P. Corrieu – J. Bervillé
Martine Moncher is a happy retiree because she will be able to spend the rest of her days in the home she loves so much. Three months ago, she sold it as a life annuity (viager). The buyer paid her a lump sum known as a “bouquet.” In addition to that, he pays her a monthly annuity of $327/month for the rest of her life. With this, Martine will be able to maintain her home, but she also has many other projects in mind. On the other hand, her house was sold for less than its initial price. This is called the occupancy discount, and it is calculated based on the seller’s life expectancy. This type of contract is increasingly popular, even though it still only represents one in every hundred sales in France. This real estate agent is observing a growing interest in life annuity sales among retirees. Josette is determined to sell her apartment, valued at $460,000. And here is her choice: a $100,000 bouquet plus an annuity of $1,700 per month for life. For her, it would mean the end of her problems, as major repairs and property taxes are paid by the new owner. Like any life annuity seller, Josette will only pay for routine utilities and charges.
