Buying a house, but not using til tenant dies

DonalHoran

DonalHoran wrote: »

Buying a property in Spain at a discount & taking possession wshen sellers pass on.
This is an established practice in France whereby property owners over 70 sell on their property at a substantial discount - purchaser buys at a large discount but also pays a modest monthly amount to sellers. Once occupants pass on,the property reverts to original purchase - Google for details /property listing - the process is called Vigeor ??? or something that sounds similiar !!!

What's the idea behind paying money to the sellers? Surely being quids-in with no actual difference to your life is the benefit for them?

I dont think I'd view it as such a decent deal (as a buyer) if i had a monthly bill aswell. Unless the property was being sold at a VERY low price in the first place. You could risk paying more than its worth.

brisan

Deleted User wrote: »

What's the idea behind paying money to the sellers? Surely being quids-in with no actual difference to your life is the benefit for them?

I dont think I'd view it as such a decent deal (as a buyer) if i had a monthly bill aswell. Unless the property was being sold at a VERY low price in the first place. You could risk paying more than its worth.

They could also die a week later
That's the gamble

The J Stands for Jay

KaneToad wrote: »

Really? Where would one go about getting such a return in 15 yrs ?

4.73% per annum shouldn't be too hard to achieve.

McGaggs

McGaggs wrote: »

4.73% per annum shouldn't be too hard to achieve.

I'd go that route if it were possible, however, I reckon that's an unrealistically high %, or would likely come at the risk of losing my money altogether..?

brisan wrote: »

They could also die a week later
That's the gamble

Yeah, i understand that, but surely just making a single one-off payment for the property makes more sense? I presume, in a situation where the buyer is also willing to give monthly payments, the property is not a normal property, but an incredibly sought-after place.


(or, as I speculated above, the price paid for the property, is much smaller than 50% of the market value).




This thread is very interesting.


To look at the other alternative, which is obviously buying an apartment and renting it out, does that then make you liable for local Spanish taxes, etc. (seems a much more complicated version of things, albeit possibly perceived as more 'normal' an approach to take).

DonalHoran

VIAGER is the actual title of this type of property scheme in France - it's a well establised procedure whereby older people will enter into a legal agreement to sell their property at a significant discount ( plus they receive an agreed monthly payment )to a purchaser wishing to secure a long term investment in France & in return they stay in ther property for life & receive an agreed monthly sum.
Like everything there are positive & negatives involved for both parties & I suggest that a person entering into such an arrangement does quite a bit of research in advance/takes legal advice - the sellers are able to release equity in their property & receive an agreed monthly sum.The purchaser receives title to the property & full ownership at a futire date. As to whether such a scheme exists in Spain ,would have to be investigated/researched. Could ,I imagine, work very well in certain circumstances - not for everyone but an exciting option for some.If the property owners lived to a very ripe old age,your 'investment' could turn negative /on the other hand if they passed on within a relatively short period ,the ruturn on your investment could be substantial.

Best of luck should you decide to proceed.