Israeli Startup Offers Partial Home Sales to Unlock Cash Without Leaving Residence
In response to the growing issue of elderly Israelis being "asset-rich but cash-poor," a new initiative called "Viager Israel" has launched a novel financial solution for homeowners aged 60 and above. The platform allows seniors to sell up to one-third of their property while retaining the right to live in their home for life. This model contrasts with reverse mortgages, which are loans that accrue interest over time and can burden heirs with debt.
The reverse mortgage market in Israel is estimated at around 5 billion shekels, reflecting rapid growth in credit against residential properties for older adults. However, reverse mortgages involve accumulating debt that must eventually be repaid, often reducing inheritance value. In contrast, Viager Israel's approach is a closed transaction: sellers receive a lump sum payment upfront for a defined portion of their home, with no monthly repayments or increasing debt.
For example, a 70-year-old homeowner with a property valued at 3 million shekels could sell a theoretical one-third share worth about 1 million shekels. After discounting for lifelong residence rights, the immediate cash payout might be approximately 600,000 to 700,000 shekels. This amount is fixed and does not grow into debt, unlike a reverse mortgage loan which could double in 15 to 20 years due to interest.
The initiative also creates a marketplace connecting sellers, investors, and lawyers to facilitate these transactions. Each deal requires professional valuation, actuarial pricing, legal review, and registration of residence rights to protect sellers. The one-third limit aligns with Israeli property tax laws, potentially making it attractive to investors seeking partial real estate exposure without full ownership.
Founder and real estate appraiser Haim Atkin emphasizes that this solution is not for everyone but should be considered alongside reverse mortgages and full sales. He notes that starting financial pressure at age 55 signals a broader economic challenge for many Israelis who own valuable homes but struggle with liquidity. Viager Israel aims to provide a transparent alternative that avoids hidden growing debt and allows seniors to remain in their homes.
The platform initially targets three groups: homeowners over 60 seeking liquidity, investors interested in partial property purchases, and lawyers specializing in real estate, tax, inheritance, and elder law to support these complex deals.
