June 14, 2021

All the keys to convert the house into an income | Markets

All the keys to convert the house into an income | Markets

In front of the formula of sale of the naked property, for which a single payment is entered, there is another option for which the habitual residence is also sold. It is the sale with guaranteed rent, by which the seller remains at home and continues to pay a rent as a tenant. It is the way that Almagro, which debuted last year in MAB, is betting, and which ensures to offer the investor a return of 10% and to the seller, an amount for the sale superior to that of the naked property and a capital in case of having to leave the house to, for example, a residence.

The owner who sells and becomes a tenant of his house will not pay the rent of his pension: from the amount of the sale, a part will be entered and another part will be destined to a leasing bag, from which to pay the monthly payment of the rental. That bag will be consumed over time, calculated according to life expectancy, but if it runs out, the tenant will not have to pay anything.

"Our offer is higher and more flexible," says Luis de Ulíbarri, president and co-founder of Almagro. The sale price of the house will be lower than the market price, since the seller can continue to enjoy it. But Ulíbarri affirms that the socimi can offer an amount superior to the one of the naked property thanks to a business model that bets by the volume, although its number of acquisitions for now is very reduced.

Starting from a real case, for an 82-year-old seller of a house in the Madrid street of Martinez Campos, with a market price close to 600,000 euros, Almagro offered a purchase price of 435,000 euros. Of this amount, 350,000 euros went directly to the seller and 85,000 euros to the rental bag, which could be recovered in the case of leaving the house before a period of 7 years, as an additional guarantee. Apart from this specific case, under this formula, the owner who becomes a tenant can dispose of the part of the rental bag that he has not consumed if he is going to live elsewhere. Or throw it to the heirs in case of death without having exhausted that bag. The rental price, from which most of the profitability that goes to the investor is obtained, will be in the upper market strip, Ulíbarri explains. So far, Almagro has acquired 16 homes, plans to double its number in the next month and is negotiating a loan for new acquisitions.


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