Reverse Mortgage: What is the Real Estate Life Income and how can I use it – Government – Policy



[ad_1]


This October 27, the National Government gave the green light for the approval of the Real Estate Life Income, which, according to a statement, serves to “fulfill the purpose of the operation known as reverse mortgage, in the sense that it will allow households Colombians use their real estate assets to increase the usual income of the elderly ”.

The approval of the Rent was in charge of the Ministry of Finance, Ministry of Housing and the Financial Regulation Unit.

The first big point to consider is that the benefit will be available to households that wish to purchase it. “The household interested in taking the insurance must prove ownership of a real estate, and will transfer said property as payment of the premium price when the contract is signed,” the document explained.

(Also read: Abecé of the second round of relief to financial debtors)

Felipe Lega, director of the Regulation Unit, assured that “for years, Colombia has been promoting strategies with the aim of developing an efficient financial system that serves society, has a wide variety of products and encourages the participation of more investors; The Real Estate Life Income is an advance in this type of strategy”.

For his part, Jonathan Malagón, Minister of Housing, specified that “this is an instrument that life insurance companies can offer. Within the framework of the operation, as agreed in the insurance contract, the policyholders will have the right to preserve the use and enjoyment of the real estate until the death of the last of them ”.

(In addition: Construction could provide 720,000 jobs by 2022)

This Real Estate Income will have two access modes:

one- Immediate Real Estate Life Income.

two- Certain temporary income with indefinite Real Estate Life Income.

As agreed in the insurance contract, policyholders will have the right to preserve the use and enjoyment of the real estate until the death of the last of them: Mini-housing

Of course: the text specified that households within the Life Annuity will have the possibility to regress the process. For this, “they must pay the insurance company the value of both the income received to date, as well as the expenses that the insurance company has assumed in relation to the maintenance of the property.”

The document also announced that, within a few weeks, the Financial Superintendence will regulate the Life Income and, with the ‘rules of the game’, will begin the admission of households willing to use the instrument.

ELTIEMPO.COM

[ad_2]