With the issue of pensions in the hottest of today, from Easy Brava, we can not miss the opportunity to talk about a real estate investment trend that is an increasingly widespread alternative in the current real estate system.
We are in a moment when pensions do not represent a monthly liquid income equivalent to the increase in food and social development expenditures, which means that many elderly people are forced to limit themselves despite having a property owned.
A new and attractive investment modality that has moved to Spain and has become a trend in the market is to sell the property of a home to an investor, but retaining the usufruct, that is, the right by which a person can use the goods. This means that whoever sells the property can live in it for the rest of his life.
Currently, there are already specialized agencies in the area. Another type of investors for this modality are insurers. Where this trend has been observed the most is in the city of Barcelona. The so-called real estate annuity is an ideal alternative for retirees over 65 years of age who do not have heirs and receive pensions.
Of course, it's a good business opportunity for investors with patience. The real estate agencies that work with this system calculate the life expectancy of the seller through official statistical data of the INE and compare them with 70% of the value of the property. This means that the property is not sold at 100% of its value. With this, a monthly rent is guaranteed to the seller of that property.
So the sellers ( ex owners of the property) not only keep their house to live, but in return receive a pension for life. The buyer, in addition, would take care of some payments like the tax of the IBI and community spills.The "sellers" can transform their non liquid assets into monthly returns and in case of default, they would recover the property again.
The buyer or investor obtains a home, in which the profitability and the final value of the same will depend on the years that the seller lives. The risk of uncertainty is high, since there are premature deaths and other long-term deaths of former owners. Therefore, this type of action is only done in large cities, where the homes in these locations are always demanded.
This alternative has a place in countries such as Spain and others in Latin America, in which the population has very low pensions with little liquidity, but with possession of attractive properties. It is increasingly common to observe the tendency to contract this type of real estate management and it is very satisfactory for the owner, since the lack of heirs the property can serve sine die to generate an adequate volume of income to maintain its quality of life and not have to adjust to the precariousness of pensions.
Due to the fact that the age pyramid has been invested, this system of selling real estate may be damaged over time, as the aging of the active population and the low birth rate predict a bad future for pensions and will become increasingly common look for alternative financing systems such as the real estate annuity or if our payroll allows it, the constitution of a private pension plan.
Unfortunately, in this last case, we see how today's society has a double gap, and that is not only the precariousness of pensions, but also the precariousness of wages in many cases, which is a great difficulty when it comes to being able to hire the aforementioned private pension plans.
One of the most interesting points that the current market provides us is the shortage of product for sale or rent that occurs mainly in large cities such as Barcelona or the coastal areas of Girona and Masnou.
This situation proposes a new scenario prior to the life annuity. If we have a house or an apartment owned, the real estate market presents perfect numbers to deal with investments, so if we are in an age range of 35 to 45 years we can consider renting our property for the acquisition of a new . In this way, we will be expanding the possibilities when generating monthly income thanks to the dispersion of capital.
If you want to invest in a house do not hesitate to contact us, we will put at your disposal our team of experts thanks to which you can meet your real estate objectives.