Property Owner – How Do I Create New “Liquidity”?

A property as a financial lifeline. Financial challenges are an inevitable part of life. Whether it’s financing children’s education, the failure of a self-employment venture, an impending divorce, inheritance disputes or obstacles with credit commitments. All of these situations can create a sudden need for additional liquidity. At such times, real estate can be more than just a home.

A property can be a crucial financial resource. Andreas Müller, a renowned expert in the partial purchase of real estate and owner of the company Realwertpartner Immobilien GmbH, will explain below how property owners can profit from their property in such situations.

The property as a financial safety net

A property often represents a significant portion of a person’s or family’s wealth. It is not only a place of retreat and security, but also a potential financial safety net. In times of unexpected financial stress, the value tied up in a property can serve as a lifeline.

You don’t necessarily have to sell the entire property and look for a new place to live in order to access this capital. There are innovative approaches such as the partial real estate sale, in which only a portion of the property is sold, allowing the owner to continue living in his or her home. This approach offers a flexible solution to generate liquidity without having to completely give up the beloved home.

The process of partial sale

The partial sale of real estate is a specialized and structured process aimed at helping property owners in financial straits. Essentially, it involves the sale of a certain percentage of the property’s value in exchange for immediately available cash. The owner thus receives a portion of the market value of their property, but still retains the right to live there and the option to sell the rest of the property at a later date.

This means that the owner can continue to live in the property and use it according to his ideas. For this lifelong unrestricted use of the sold share, the partial seller then pays the buyer, such as the company Realwertpartner Immobilien GmbH, a monthly so-called usage fee.

The process usually begins with an appraisal of the property, followed by the seller’s determination of the percentage of the sale, which can be a maximum of 55 percent of the appraised market value. Once an agreement is reached, the sale is notarized by a notary public. The latter then supervises the sale process until the seller/owner has received the agreed amount.

The advantages of the partial sale

The partial sale of real estate offers a number of advantages that make it an attractive option for many property owners. First, it allows access to liquidity without the need to sell or abandon the property entirely. This is especially beneficial in situations where the owner is emotionally attached to the home or when a complete move would be impractical or impossible.

Secondly, the amount generated by the partial sale can be used to meet urgent financial obligations, be it repaying debts, covering unexpected expenses or financing new investments. In addition, the partial sale offers flexibility; the owner can decide to sell further shares at a later date if additional liquidity is needed or can buy back the sold share at any time.

The role of experts

In the complex world of real estate transactions, the role of experts is essential. Not only do they offer in-depth knowledge and experience, but they also provide a network of contacts and resources that make the partial sale process smooth and efficient. A knowledgeable expert can accurately assess the true value of a property and ensure that the owner receives a fair price for the portion sold.

In addition, they can guide through the entire process, from the initial consultation to the closing of the sale. It is important to turn to a trusted and experienced professional to ensure that all legal and financial aspects are handled correctly and that the interests of the property owner are protected at all times.

Bottom Line

Raising liquidity through real estate, particularly through the partial sale of one’s home or apartment, provides an innovative and practical solution to many of the financial challenges people face throughout their lives. It provides access to much-needed capital without having to give up the home you love. For those facing financial difficulties, it can be invaluable to enlist the services of experts and explore the options that partial real estate sales offer. In uncertain times, real estate can actually be a safe haven.