The real estate market offers multiple buying and selling options, and one of the least known but most interesting is the bare ownershipThis is a formula that allows the owner to sell his home without ceasing to live in it, an attractive solution for older people seeking liquidity and for investors who want to acquire properties at reduced prices.
In this article, we explain how bare ownership works, what advantages it offers and what aspects you should take into account before opting for this alternative.
What is bare ownership and how does it work?
When a person owns a property, he has two main rights about him:
- The bare ownership, which is the right of possession and disposition of the property.
- The usufruct, which is the right to use and enjoy it (live in it, rent it, etc.).
The sale of bare ownership means that the owner gives up the right of possession to a buyer, but maintains usufruct, that is, he can continue living in the home until his death or during the agreed period.
The buyer, for his part, acquires the property at a price lower than the market price, waiting for the usufruct to expire so that he can freely dispose of the property.
Advantages for the seller: liquidity without losing the home
For many owners, especially older people, bare ownership represents a source of income without having to leave your home. Its main advantages are:
- Immediate liquidity: Capital is obtained that can be used to improve quality of life, meet medical expenses or help family members.
- Without loss of home: The right to live in the home for life or for the agreed period is maintained.
- Exemption from IBI and other expensesIn many cases, the buyer assumes the property taxes and expenses, reducing the seller's financial burden.
Benefits for the buyer: investment for the future
From the buyer's point of view, the acquisition of a bare ownership is a long-term investment with multiple advantages:
- Reduced price: The property is purchased at a cost below the market price, with discounts that can range between 30% and 50%.
- No rush to make money: You do not have to pay a mortgage to occupy the home immediately, which allows you to plan your investment without any urgency.
- Revaluation of the property: In the long term, the property can increase in value, which maximizes profitability when the buyer can freely dispose of it.
Legal and tax aspects to take into account
Before opting for bare ownership, both sellers and buyers must consider certain factors:
- Contract and conditions: It is essential that the operation is well detailed in a contract, specifying the life or temporary usufruct, who assumes the expenses and what happens in the event of a future sale.
- Taxation: The seller pays personal income tax on the capital gain obtained, while the buyer will pay the Property Transfer Tax (ITP).
- Valuation of the home: The price of bare ownership varies depending on the age of the usufructuary and the market value of the property.
Growing trend in Spain
In recent years, bare ownership has gained popularity in Spain, especially in cities such as Barcelona and Madrid, where demand for real estate investment continues to boom. Many older people see this formula as an alternative to maintain their standard of living without depending on loans or reverse mortgages.
An option to consider
If you are You are a homeowner and need liquidity without giving up your home, or if you are investor and looking for a long-term real estate opportunity, bare ownership can be an excellent alternative.
At SerraWe advise you at every step of the process so that you make the best decision based on your needs and objectives. If you want to know more about this option, Contact us and we will help you assess whether bare ownership is the best option for you.
