Those who now own real estate can receive additional income from it, continuing to fully live in it. We are talking about an interesting and, in a sense, revolutionary approach to housing ownership — "trust ownership" (bare ownership). It is also known as "nuda propiedad", literally "naked possession".
Despite the fact that Spain is still a country where it is customary to buy housing rather than rent, which distinguishes it from other European countries, the instrument of trust ownership is increasingly gaining popularity.
Eduardo Moli, a real estate consultant, notes that more than 70% of Spanish citizens own the house they live in. This percentage increases to about 90% in the case of people over 65 years of age.
Mole talks about the future of a new form of ownership in the Spanish market: "More and more people over the age of 60 decide to sell their house without giving up the right to continue living in it. They can live there for the rest of their lives and receive additional income to their existing pension".
Advantages of the trust form of ownership
This concept may be new to many people, but in fact it is a fairly understandable system. The experts of the Idealista portal explain that this is essentially a reinterpretation of the usufruct. The owner of the property sells the right to own his house, reserving the right to use it for a certain period of time or under certain conditions.
Trust property is especially well suited for elderly people, since on the one hand they stay with housing, and on the other hand they receive money when it is sold. The buyer usually buys a house at a much lower price than on the market, and will be able to resell it profitably in the future, after liberation.
At the same time, the seller still remains to live there as in his house. Consequently, he will continue to take care of the object as his own home. In this case, the seller may pay less attention and resources to the management, repair and maintenance of the purchased property.
To summarize: the seller gets money by keeping housing, and the buyer gets cheap housing, which will then cost more, and may not think much about its constant maintenance.