FAQ

Let’s say you buy today to acquire full ownership of the property after 15 years.

Let’s also assume that the value of the property today is €100K of which €40K is the usufruct part, so you bought for €60K.

So, in 15 years, when the usufruct has gone to zero then the value of the property will have become €100K at zero inflation and zero capital gains and so in this case your money has yielded €40K in 15 years.

But if we consider the capital gain at 1.50% per year and inflation is 1.50% then you can resell the property for €150K with a surplus value of €90K when you only invested €60K, therefore a final return of 150%. 

It is necessary to establish in which year you want to resell the house or in which year you want to move into that house.

Suppose it’s a simple investment: I buy to resell when I think I’ll need it…let’s say in 10 years.
However, if necessary, I will be able to resell the property at any time, even if there is a usufruct, so the only decision-making element is the amount I have available today to invest.

But I could evaluate if the seller accepts payment by installments or if the bank allows me to take out the loan for the sum I lack for the purchase.
This option obviously applies when it is assumed that the property will be able to appreciate significantly and therefore the cost of installment interest will be reabsorbed by the revaluation.

For example, let’s assume that, based on the master plan, a university or residential area or offices or a subway station are being built nearby, then the cost of interest will certainly be compensated.

If, on the other hand, you intend to go and live there, then it will be good to buy it well in advance considering both the life expectancy and a certain precautionary surcharge to be more confident about the takeover date.

Obviously if you buy it for your children this uncertainty is much more manageable!

It is equally manageable if this property can be used to balance the inheritance among your children.