The continuing price declines on the real estate market pose considerable risks for part sellers of houses. This is according to an article in "spiegel.de", which refers to a study by Leutner-Consulting. According to the study, owners could only achieve 66% of the original value for their remaining share if the value of their property falls by 10%. In the case of larger price falls of 25 or even 40 percent, the value of the remaining share is further reduced to 40 and 13 percent respectively.
In the case of a partial sale, owners transfer part of their property to a real estate company, but retain the right to use the areas sold for a fee. At the same time, they authorize the real estate company to resell the entire property after their death at the latest. Study author Bernd Leutner warns: "The loss potential is considerable". This is because the providers would secure the majority of the profits to be made in the contracts.
In addition to the considerable loss in value, part-sale companies have stipulated protective measures against falling property prices in their contracts. These clauses guarantee them a minimum profit of up to 17% on the resale of the property. In addition, so-called execution fees may be incurred when the property is sold. According to Leutner, owners or their heirs could be in for a "nasty surprise" at the end of the contract.
Source: spiegel.de
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