LEADING LUXURY HOME
IMMOBILIER : VIAGER ILE MAURICE
Disclaimer: This information is given for information purposes and has no legal value. It is important to consult a professional.
In the middle of Real estate investment, there is a little known concept: the lifesaver. This is a very beneficial concept for both the buyer and the seller. This solution allows the seller to have additional income while the buyer acquires property without having to spend too much. More and more French people offer houses in Mauritius. The purpose of this article is to find out whether there is a market for OTC life in Mauritius.
Does the concept of Viager exist in Mauritius?
The answer to this question is ‘YES'. There is a life market in Mauritius. The concept is as follows. The buyer or investor shall pay to the seller, on the basis of a calculation made taking into account the value of the property and the age of the seller, part of the sales value of the property. Then the seller receives regularly from the buyer, a « rent ». For the seller, this is a passive supplementary income.
Investment under the Mauritian sun
Mauritius is for many people, a dream destination. Many French investors in particular, choose this area of the globe to diversify their real estate assets. It is also an excellent way to prepare your departure to an area where the sun is one of the best shared things. Besides its beauty, the island has many other advantages that make it a popular destination. Indeed, it enjoys economic and political stability. Therefore, it is the ideal place to invest in life estate.
Moreover, the island offers very interesting tax advantages. Real property on the island is not subject to the obligation of the ISF. Better, your property income from Mauritius, do not benefit in France, from any taxation. They are subject to a 15% levy.
The Viager OTC in Mauritius
Given the tax and tourism advantages offered by the island, it has become an opportunity to live it on a voluntary basis. Contrary to the demand in the traditional real estate market, the market for life on the island is experiencing a sharp increase in offers (the double). The forecasts show that this growth in the life market will continue in the coming years, a marked growth. This is the time to invest in Mauritius. Indeed, more and more buyers of real estate on the island, make the choice of sale by way of life. Statistics in the real estate sector on the island show that 95% of current transactions are OTC sales contracts. Generally, in relation to the terms of the contract, after the sale of the property, the seller may continue to occupy a part or an apartment. But he no longer remains the owner.
Legally, the « Credential » or the seller continues to enjoy his property by continuing to live there. As for the purchaser also referred to by the term « debenture », he acquires the nude property. He shall pay to the seller according to the terms of the contract an amount (the bouquet) agreed with the seller. It supplements this sum with a life annuity paid monthly to the seller until the latter dies. After the seller's death, the buyer becomes the sole owner of the property.
Lifelonging, a concept popular with pensioners and the elderly
As previously described, the concept of life expectancy will not interest everyone. In fact, in general, older people as well as those who have recently claimed their pension rights are attracted by this "locative" solution. Statistics show that the majority of sellers are over 70 years of age. The formula allows them at this age, to have income complementary to their passion for those who have it, while continuing to partially enjoy their property. For this purpose, he will occupy either a studio in the accommodation or a separate room. This will depend on the contract and many other parameters.
Conditions of sale by way of life
As explained, the concept of life-sales seems simple. But there are conditions that must be respected. Several criteria are taken into account in determining the amount of the package and the lifetime pension. These criteria are:
- The economic value of the property in the real estate market
- Age of the credirent;
- Life expectancy of the credirent.
In view of these different criteria, the package may be small. In this case the lifetime pension payable must be very large. Conversely, when the bouquet is very high, the lifetime pension is low. Generally, the bouquet is set at between 30% and 40% of the market value of the property.
However, it is not excluded that the buyer should agree on a bouquet above this range in order to be able to pay a lower lifetime annuity.
LEADING LUXURY HOME
LLH, CONTRACTING NULLITY CONDITIONS
In accordance with the Act of 29 March 1949, a sale of life in order to be concluded must retain its character « hazardous » the life expectancy of the credirent. In other words, if at the time of the sale, the acquirer has information about the (very defective) health condition of the seller, the seller or any person entitled, may cancel the contract of sale by way of life. Furthermore, any death on the person of the seller within 20 days immediately after the date of signature of the contract of life-sales, the latter shall be null and void.
Bill of sale
Any transactions in Mauritius must be sanctioned by an act of sale. The deed of sale must be formalized in the rules and must include essential elements such as the civil status of the seller, the sales value of the property, the amount of the bouquet, the amount of the annuity, the conditions of payment. The notice of sale may also specify the time when the purchaser becomes the sole beneficiary of the property.
LEADING LUXURY HOME
INVESTMENT IN ILE MAURICE: PRECAUTIONS
In Mauritius, you can make a purchase of Non-Citizen Property. By making this property a principal residence, you will obtain a Mauritian residence permit. You can also make rental investment or make a sale via life. In the latter case, be careful to clearly specify the different current expenses associated with the property. In the contract of sale, remember to insert the clause relating to the valuation index of the annuity and the solvent clause.
