"Blanket property rights" My home remains my castle

The market now offers a wide range of opportunities for property owners. Selling is not always the right way to use existing assets. The solution is called "bare ownership".

These are certainly not easy times: rising inflation, tax increases, the rising cost of living - all of which are forcing many people to rethink their economic situation.

Older people are particularly affected. However, some have real assets in the form of real estate. However, selling is out of the question, as real estate retains its value and is the best way to hedge against inflation.

"Bare ownership"
Even if you rule out selling your property because you live in it, you have a good opportunity to use your existing assets. This is known as the sale of "bare ownership" (nuda propriedad) to an investor. As the seller, you retain a lifelong usufruct (usofructo) to the property.

The system of selling the "bare ownership" has many advantages. The seller may live in the property for the rest of their life, so they remain the owner in the legal sense. For older people in particular, this is an important circumstance as, true to the motto "you don't transplant an old tree", they do not have to change their familiar surroundings or lifestyle.

As a seller, you immediately receive a large sum of money that can be used as you wish: For travel, medical expenses, fancy restaurants or as a lifestyle improvement.

Income money
With the "special sale" there are no payments of property tax or municipal charges – these will be borne by the investor in future. Electricity and water will remain as costs.

You can also rent out all or just part of the property and earn money as a result. The usufructuary right can also be sold to raise additional disposable income. This can be used to supplement a pension, for example.

The disadvantage is that when you sell the "bare ownership", you receive a lower price for your property than the market value. Children or relatives also receive less by way of inheritance.

Possession preserved
Nevertheless, selling the bare property is a clever and, in individual cases, advisable way of turning the asset value of a property into cash without losing ownership of it.

Whoever sells in this way will not notice any difference between the living situation before and after the transaction. Only money is available.

In addition to the fact that you can stay in the same place and in familiar surroundings, there are other advantages. You avoid all the hassle that a standard property sale entails. The sale of bare property is recommended for older people who own assets but want to make money liquid without sacrificing quality of life.