Split payment, or How to become the owner of a house for €1.4 million with €175,000

Split payment, or How to become the owner of a house for €1.4 million with €175,000

Just a few weeks ago, at the end of April, the real property chain ComprarCasa carried out a study as a result of which the demand for the second houses for own use is expected to grow by 50% this year.

Today, Spanish proptech company Vivla offers the opportunity to own a €1.4 million home with an investment of €175,000.

This opportunity has become available to potential clients due to the development of a fractional / share property ownership system, backed by a developed legal framework created by a well-known law firm.

Vivla aims to become a leader in the sector of such sales throughout the southern part of the European continent. The company is backed by US seed fund FJ Labs, Barcelona venture capital fund Extension Fund and British asset management company Fasanara.

The share model is extremely simple. Anyone interested in buying the second house in Spain can contact Vivla and report:

  • How much money the client has available;
  • Which district attracts the client;
  • For how many weeks the client would like to receive the asset.

Carlos Emilio Gomez, CEO and co-founder of Vivla, as well as a number of other proptech (note Rento, Pryconsa), says in an interview with Idealista: “Typically, the second houses are used for about six weeks a year. For this reason, we have divided the ownership of the property into 8 shares, giving each eighth the right to six weeks of ownership.

According to the data provided by this proptech startup, there are about 18 million houses in the southern part of the European continent alone, which are used only 15% of the time per year. Millions of Europeans are interested in getting the second home to live in for only a few months in Southern Europe.

Emilio Gomez adds: “We live in a much more adaptable society, where joint ownership and use of assets is widespread in a variety of markets and sectors. I think the second house market needs this new concept.”

Some consider this fractional property payment model to be a copy of the timesharing system, but Emilio Gomez tries to explain the differences between these systems: «In the case of timesharing, you are not the owner of anything, you pay the owner only for the right to use the properties for some time. With a split payment, the client immediately becomes the full owner of the property share for which he paid. This purchase is protected by law firm Garrigues. This means that you are investing in real property and you can sell your share in it at any time, earning in this way».

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