When an owner decides to hand over ownership of a property whether it is a home, a business premises or an office and keeps the right to usufruct for himself, he is giving up part of the estimated value of the property.
The Civil Code establishes the way to calculate the economic value of the usufruct.To do this, it initially considerswhether it is a temporary or life usufruct, and in each case determines the way to proceed.
The value of the bare property is a fraction of the total value
Likewise, it indicates that the value of the bare property will be thedifference between the value of the object in question and the value of the usufruct.Obviously, it follows that the value of the bare property will always be a fraction of the total value.
This already makes a difference between acquiring a property fully and negotiating only the bare property.On the other hand, if this negotiation involves the payment of a temporary or lifetime periodic rent, the necessary investment could be even less.
It should be noted that each negotiation where the usufruct of a home or property in general is established can be agreed as the parties wish.
skymarketing.com.pk strives to be Pakistan's biggest real estate developer ever, guaranteeing the highest international standards, prompt execution, and lifetime customer loyalty. For further detail visit rudn enclave housing soeciety
For example, if the rent is temporary, the usufructuary could request that it be guaranteed;In other words, if the eventuality occurs that he dies before the agreed deadline, then the rest of the installments are delivered to a third party.
The same can apply to usufructs with associated life annuities, which will definitely affect the amount of the rent, since the investor will have to consider that they will always disburse a certain global amount and will never benefit from a premature death of the usufructuary.
An apartment in a bare property will always be cheaper
In any case,acquiring the bare ownership of an apartment will always be cheaper than other options, even when the agreement contemplates a single payment and is not canceled through periodic rentals.
This is precisely where the attractiveness of attending to these offers lies, since investors can obtain ownership for a fraction of the total value of the property and, in the long run, - in the worst case scenario - they will obtain full ownership.
The importance of counseling in these cases is vital.Whoever invests in the bare ownership of a flat must make sure of several things.
The first thing is that the property is not being overvalued, and for this the most appropriate way is to go to a professional valuation carried out by experts specialized in the real estate area.
The proposed rentmust benegotiated with the original owner.Although part of the appraisal of the property, depending on the circumstances the investor can get better advantages to bring the amount of rent to a point of equilibrium.
Seeking professional advice is essential
Then, it is recommended that you assist with experts in the drafting of contracts of this nature, in order to anticipate all the situations that may arise and avoid loose ends that later represent headaches, making the business more expensive.
The terms of the termination and subsequent actions must be clearly stated in the document, so that there is no doubt when claiming full ownership.
Definitely, when negotiating a flat in bare ownership we will be able to verify that we willsave moneyand that, if our purpose is to invest being willing to wait for the fruits in the medium or long term, we will be satisfactorily rewarded.
