Do the french have reverse mortgages?
Through the CBA reverse mortgage being 85+ she would be able to have access to 40% of the value of her property to a maximum of $425,000
buying property of pensioner at todays prices
- Thread starter KQ8
- Start date
Do the french have reverse mortgages?
Through the CBA reverse mortgage being 85+ she would be able to have access to 40% of the value of her property to a maximum of $425,000
This is the problem:
There is an assumption that the little old lady will live on for 4 or 5 years or so and then conveniently die in her sleep or playing bingo or something like that. The last years of people's lives aren't always as neat as that.
There is an assumption that the little old lady will live on for 4 or 5 years or so and then conveniently die in her sleep or playing bingo or something like that. The last years of people's lives aren't always as neat as that.
Gee, 800 properties offered for viager just around Paris!
Viager appears quite popular with sellers who pocket a large down payment to use it as early inheritance for their families while beating the inheritance tax. The annuity is used to supplement their pension.
Current market seems to indicate there is more supply than demand.
Different environment here.
There is a whole area of law relating to 'elder abuse' - younger taking advantage of the elderly, whether intention or not.
As Paul mentioned there sorts of things can be unwound or disputed before or after death. For example in NSW if someone disposed of property for under market value and then carks it within 3 years then the property could still be deemed part of the estate of the deceased if someone makes a claim against the estate.
There are also equitable principles of unconsionability and undue influence. A court court rule she didn't understand the transaction and that the property is still hers with you holding it as trustee for her.
So if you are going to do such a transaction you must make sure she seeks independant legal advice and everything is clearly documented and recorded.
As Paul mentioned there sorts of things can be unwound or disputed before or after death. For example in NSW if someone disposed of property for under market value and then carks it within 3 years then the property could still be deemed part of the estate of the deceased if someone makes a claim against the estate.
There are also equitable principles of unconsionability and undue influence. A court court rule she didn't understand the transaction and that the property is still hers with you holding it as trustee for her.
So if you are going to do such a transaction you must make sure she seeks independant legal advice and everything is clearly documented and recorded.
I think there are some things that you haven't considered...
1. assumption that she will live for 5years -- what happens if she lives for 10, or 15?
2. others have raised the issue that she may need to move into an assisted living program and need her house for bond-- yes this isn't your concern right now, however, if she had family they would go through these scenarios with her. they would (possibly) also know her medical history better than you do and be able to talk to her about that.
3. does taking a cash payment from you affect her pension?
these are things that family members (if she had them) may talk to her about and as long as you make her an offer having discussed these (and any other issues that may come up) she can make an informed decision. if you don't talk to her about these issues then you are using your relationship with her to take advantage of her/not being transparent about how this might affect her immediately or down the track.
1. assumption that she will live for 5years -- what happens if she lives for 10, or 15?
2. others have raised the issue that she may need to move into an assisted living program and need her house for bond-- yes this isn't your concern right now, however, if she had family they would go through these scenarios with her. they would (possibly) also know her medical history better than you do and be able to talk to her about that.
3. does taking a cash payment from you affect her pension?
these are things that family members (if she had them) may talk to her about and as long as you make her an offer having discussed these (and any other issues that may come up) she can make an informed decision. if you don't talk to her about these issues then you are using your relationship with her to take advantage of her/not being transparent about how this might affect her immediately or down the track.
Thanks for some to the helpful info and opinions and the others who only see what they want to see or read. Sorry my proposed offer would be a 100k or so under what she might get on the open market and some one else kicking her out of her home. As I said I can't get another loan now for some time so around 300 is all I can offer and free rent for as long as she wants
All seems to hard obviously hopefully she gets market value when she has passed away and pass it on to government. In meantime she can get used to the run down house and busted false teeth then. Not interestedin logging on to listen to people who know half a story and jump on their high horses on half baked info. As I have said she has no family as in nooo family.
All seems to hard obviously hopefully she gets market value when she has passed away and pass it on to government. In meantime she can get used to the run down house and busted false teeth then. Not interestedin logging on to listen to people who know half a story and jump on their high horses on half baked info. As I have said she has no family as in nooo family.
I wouldn't take it personally if I were you. If you post on an internet forum, you need to expect good and bad feedback and there will always be someone who gets the wrong end of the stick.
I think a valid concern has been raised in that if she needs to move into high care, she may need funds for a deposit. That is something to consider.
FWIW, I don't think that it is a bad idea at all as long as you consider some of the things that can go wrong, work through these issues with her and both make an informed decision.
yes there is help for home maintence/repairs and certainly dental care. sadly this vulnerable woman maybe isolated from assistance? a good neighbour aware of her plight would hopefully point her in the right direction.
this targeting of frail elderly maybe more common than is known. handing over the deeds for promised repairs and free rent for life. no safeguards for the person, no security of tenure once deeds handed over.
thanks for highlighting this matter. really hope in some way the elderly lady can be protected.
this targeting of frail elderly maybe more common than is known. handing over the deeds for promised repairs and free rent for life. no safeguards for the person, no security of tenure once deeds handed over.
thanks for highlighting this matter. really hope in some way the elderly lady can be protected.
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