Črpanje nepremičnega premoženja za investicije v pametne srebrne vasi (=Drawing on real estate assets for investment in smart silver villages)

Abstract

The existing housing stock in Europe, including scattered farmhouses, is grossly inadequate for long-term care (LTC) at home. Renovating these houses suitable for LTC requires a considerable new investment. An alternative is to sell or transfer ownership of family homes and farms and buy a residential unit in a retirement community by taking out a reverse mortgage loan. We present an approach to investing in the removal of barriers in part of an extended retirement home or the purchase of a property in a Smart Silver Village (SSV) from farm transfer subsidies if permitted by the call for proposals to encourage the rejuvenation of farm ownership. Our approach includes the actuarial present value method and periodic longevity insurance premia. It also includes funds from the agricultural transfer program for younger members of farming households. Moreover, it allows older farmers to move to a SSV if they pass the farm on to their successors and receive a portion of the reimbursement from government funds. This way, they become co-investors alongside the municipality in the SSV located relatively close to their respective farms. The current retirement home location in Slovenia is quite far from the farms. Existing reverse mortgage contracts in EU member states end when a homeowner moves into an assisted living home. Our approach with minor adjustments applies to all EU Member States.

Keywords

• actuarial mathematics
• rural economy
• land use planning
• long-term care location
• smart silver village
• reverse mortgage
• equity release