Bare Property Basics

Difference between the purchase of the Full Property and the Bare Property

Traditional real estate investing acquires full property ownership. It is comprised of two rights:

  • Bare Property
  • Usufruct (Right of property use)

In the traditional real estate investment, the buyer has the right to use the property immediately after the transaction is formalized.

In bare property operations, investors only acquire bare property and the seller maintains the right of property use for the rest of his/her life. Bare property transactions are valuable for the elderly sellers allowing them to continue living at their homes, while monetizing part of the ownership earning economic income. Whereas the buyer could apply significant discounts to property market value.

 

Investment types at JJC Capital Partners

From our team we apply three different purchase variants depending on the preferences and risk profile of our investors:

Bare property through a single initial investment payment

JJC Capital Partners acquires bare properties through a single initial payment, while the seller maintain the life-long right of use the property.

Once the operation is formalized, the maintenance costs of the property are distributed as follows until the end of the usufruct.

JJC Capital Partners Usufructuaries
  • Real Estate Tax
  • Extraordinary spills
  • Continent insurance
  • Community fee
  • Urban Waste Rate
  • Supplies (water, electricity, etc.).
  • Content insurance

 

Bare property in exchange of a long-life monthly rent

JJC Capital Partners acquires bare properties in exchange of a long-life monthly rent, while the seller maintain the life-long right of use the property.

Once the operation is formalized, the maintenance costs of the property are distributed as follows until the end of the usufruct.

JJC Capital Partners Usufructuaries
  • Real Estate Tax
  • Extraordinary spills
  • Continent insurance
  • Community fee
  • Urban Waste Rate
  • Supplies (water, electricity, etc.).
  • Content insurance

 

Full ownership investment and long-life rent

JJC Capital Partners acquires full property ownership and the seller turns into life-long lessee paying a rent to JJC Capital Partners similar to a sell and lease-back operation. Monthly rent payments from the seller to JJC Capital Partners are reviewed on annual basis in order to revalue rent payments following the Spanish Consumer Price Index.

Once the operation is formalized, the maintenance costs of the property are distributed as follows until the end of the rent.

 

JJC Capital Partners Usufructuaries
  • Real Estate Tax
  • Community fee
  • Extraordinary spills
  • Continent insurance
  • Urban Waste Rate
  • Supplies (water, electricity, etc.).
  • Content insurance

Madrid Offices

Príncipe de Vergara 132, Floor 9

+34 606 900 730
+34 619 937 014

info@jjccapitalpartners.com