Guide to French reversion property

When you purchase your reversionary property in France there are three different payment plans possible for you. (more…)

The primary step in this process is to familiarize yourself with the various aspects of reversionary property investment in France. Get that learning curve started. The more you know, the better. When you start looking, you need to have a clear idea of what you have to look for. You need to know what regions are attractive and what makes them good prospects. You will need to determine your own preferences as well. Does a house, an apartment, a chalet or a villa suit you best? You may be planning to live in the property in the future. Will your future requirements be different? Your budget is another important consideration and you need to work it out carefully. You need to determine how much you are able to spend on the initial lump sum payment and what monthly reversionary payments you would be able to comfortably afford. These payments will be ongoing for an indeterminate length of time

Next you need to locate and identify a property that most closely fulfills the conditions you have established during your research and learning phase. French viagers have a high discount, and for that reason usually they do not take long to find a buyer. You need to be able to make a decision and a commitment very quickly if you see a reversionary property you are interested in. There may be more than one party interested in it and it could be taken up by someone else. The viagers that are unoccupied are in the highest demand and do not last very long on the market. There are some that have monthly reversionary payments for a definite time period, instead of until the death of the vendor. These viagers with a time cap on the payments are also extremely attractive and sell very quickly. (more…)

Many baby boomers are scheduled to retire within the next few years. This will put quite a strain on the pension plans and the entitlement costs for the state, and just like the British, the French are concerned about the impact the baby boomers will have on the economy. In France as elsewhere, many elderly and retired people are unable to live comfortably on their pensions. They are therefore in need of an additional source of income. The French home reversion plan can supply the added income they need to make their budgeting easier.

French law has structured reversionary property transactions so that they can offer significant benefits not only for the purchaser, but also for the vendor who can continue to live in their residence until their death. The balance of the occupancy by the vendor would be as a tenant and not a property owner. However, the terms are anything but a conventional rental or leasing agreement as the vendor receives significant financial security. (more…)

The French home reversion program has become very popular form of investment over the years. It is basically making an agreement to buy a home at a negotiated price and not taking possession until the original homeowner dies. A great many have already bought a viager (reversion) in France because you can make an investment in a property at a price below market value. This makes it a very attractive investment, especially for those with an eye to the future.

The French term ‘viager’ is used for this type of home that is sold while the owner is still in residence. It originally comes from the word ‘viage’ which refers to the uncertainty of the length of a life. That is the key factor in a French home reversion transaction, as the payoff for the buyer occurs only upon the death of the vendor. (more…)

The primary advantage of the French reversionary program is that you can buy a property at deeply discounted price. You can’t live in your viager yet, but you have bought it. This discount can be up to 50% of the market valuation price of the French viager. Most of the time the French home reversion plans are for life. You will therefore have to carry on paying the monthly reversionary payments until the vendor passes away. In this way your investment is a bet on the life expectancy of the vendor. If you want to limit the period of time you are required to make the reversionary payments, you can take out an insurance policy in order to limit the ‘excess’ of life expectancy of the vendor. It will cost you more along the way but will give you a known end date for your payments. (more…)