| Reversionary property is a good medium to long | | | | use the property or rent it out. Payment can either |
| term investment. Though non-income generating, | | | | be in a lump sum, in monthly annuities or a |
| reversions are superior when it comes to capital | | | | combination of both. Usually, institutional investors, |
| appreciation. Easy and virtually free from investing | | | | affluent individuals and those looking for a holiday |
| risks, reversionary property investments also offer | | | | home in the future would greatly benefit from |
| potentially high returns. And since it is almost | | | | reversionary property. |
| impossible for property prices to fall by half their | | | | Investment in reversionary property is beneficial to |
| present value, it makes good business sense to | | | | both the homeowner (vendor) and the buyer. For |
| invest in reversionary property. | | | | the vendor, it is as if he is granted a lease that will |
| In reversionary property investment, you simply | | | | last until the end of his life. He is released from the |
| purchase a residential property from a homeowner at | | | | responsibility of big-ticket payments on his property |
| a highly discounted price. A reversionary property can | | | | such as major works and land tax. He also receives |
| be bought for around half of its value, depending on | | | | additional income in the form of the cash lump sum |
| the age of the vendor and the location and | | | | or monthly annuities, which could greatly supplement |
| characteristics of the property. Payment is either in a | | | | an elderly person's pension. More importantly, he does |
| cash lump sum or in monthly installments. The | | | | not have to sell his own home or move out, thus |
| homeowner continues to live in the property as a | | | | increasing his stability and peace of mind. |
| tenant rent-free and with full legal rights to remain in | | | | For the buyer, investment in reversionary property is |
| occupation until his death or until they voluntarily | | | | an excellent opportunity. Not only is the property |
| vacate. Then the ownership of the property reverts | | | | available at a huge discount, most of them are studio |
| to the buyer. | | | | flats, apartments, villas and commercial establishments |
| Since the homeowner continues to live in the home | | | | located in prime areas. Since most of these |
| as if it were his own, he is still responsible for the | | | | properties were initially purchased as a retirement |
| general upkeep and maintenance of the property | | | | house, they are often located in a major city or in |
| such as utility bills, building insurance premiums and | | | | the quiet countryside. |
| capital tax while he continues to occupy the house. | | | | Reversionary property is definitely one of the least |
| Reversion investments are basically a bet on the life | | | | troublesome and safest way of investing in property. |
| expectancy of the homeowner. The buyer pays the | | | | It is best for those who would like to have a holiday |
| monthly reversionary annuities until the homeowner | | | | home when they retire. For sure, the property is |
| dies. | | | | well-maintained by the homeowner, since he still |
| Reversionary properties are of two kinds: tenanted, | | | | considers it his home despite the fact that ownership |
| which means that the homeowner lives in the | | | | has been transferred. By investing in reversionary |
| premises, and untenanted, whereby the vendor does | | | | property, one is sure to acquire a well-maintained, |
| not live in the property. In this case, the buyer can | | | | valuable home in the near future. |