Within the current real estate market, one of the options that has generated the most controversy but also the most opportunities is the purchase of occupied apartments. These properties, whether they are occupied illegally or are being used by tenants who still have a valid lease, are usually sold at prices well below their current market value, which can make them a very attractive alternative for people such as high-risk investors.
However, purchasing a property that is occupied also entails certain legal, financial, and logistical challenges that must be carefully evaluated. In this article, we will take an in-depth look at everything involved in buying an occupied apartment, the risks and benefits of doing so, how the eviction process works, and the key factors to consider in order to make an informed decision when buying an occupied apartment.
Buying an occupied apartment refers to purchasing a property that is already occupied by someone without the owner's consent (known as illegal occupation) or by tenants who still have a valid rental contract. These types of situations can affect the purchase price of the property, the legal procedures, and the subsequent process of recovering the property.
In this type of occupation, the occupant has a legal and fully valid rental agreement, which the owner must honor until it expires. This can even be an opportunity for ongoing profit if the tenant continues to pay on time.
In this type of occupation (distinguished by being spelled with a k, okupación), the occupants of the property do not have permission from the owner to live there, so a legal process is required to carry out the eviction, which can involve legal costs and delays.
Many owners are unable to evict the occupants of their properties, so they prefer to sell rather than face the lengthy legal proceedings involved.
Due to the challenges posed by occupied properties, many banks and investment funds sell these apartments at very significant discounts.
Some owners cannot afford the legal and maintenance costs, so they prefer to sell their property.
Yes, it is legal to buy a property that is occupied. However, the new owner must also assume responsibility for the legal status of the property. If there are illegal occupants, then eviction proceedings must be initiated. And if the property has legal tenants, the current contract must continue to be honored.
You may be interested in: what is an eviction.
First, you should look for investment opportunities in occupied properties. Banks often sell these properties at auction through their asset departments.
In this case, the legal status of the property and the situation of the occupants must be verified.
Occupied apartments can be sold at discounts of 30% or even 50%.
Finally, the deed must be signed, but the buyer must take responsibility for the eviction.
You might be interested in: Warranty Against Eviction.
The purchase price can be between 30 and 60% less than for an unoccupied apartment. However, legal costs such as lawyers' fees or evictions can range from €3,000 to €10,000. In addition, depending on the condition of the property, necessary renovations can cost between €10,000 and €30,000.
If there are legal tenants, you must wait until their lease expires. On the other hand, if there are illegal squatters, you must initiate an eviction process that can take between 6 months and up to 2 years.
Once the property has been recovered, it can be rented, sold, or renovated, depending on what the new owner prefers to do.
It must be verified whether there is a rental agreement or whether it is an illegal occupation.
Consideration should be given to whether major renovations are required on the property.
Legal expenses, maintenance costs, or potential unpaid debts associated with the property may be incurred.
If the property is located in a good area, this will greatly facilitate its appreciation.
It is recommended to hire a lawyer specializing in evictions if the property is illegally occupied.
It is important to consider setting aside financial reserves that may be needed to cover unexpected legal costs that may arise along the way or renovations that may need to be carried out on the property once it is vacated.
Evictions can take months or even years, so if you choose this type of purchase, you should take these timeframes into account.
For this type of purchase, banks often offer better terms that are worth considering when making your decision.
Yes, this can be a much more profitable option, as occupied apartments can be sold at a value between 30 and up to 50% lower than an unoccupied one. However, the location of the property must be taken into account for its revaluation, as well as the legal costs that the property will entail.
This period can last from a few months to a couple of years, depending on how quickly the trial progresses, which can vary depending on the procedures required, the willingness of the occupants, among other factors.
Yes, squatters who are residing on the property illegally can be evicted. However, this action requires a legal process involving a trial and obtaining an eviction order. Therefore, you must be prepared to go through this entire process, which can be very lengthy.
In this case, legal channels must be followed; squatters cannot be removed by force, even if they are there illegally. However, once a court order has been obtained, the police can take action and remove the squatters.
Some banks may grant specific mortgages for this type of purchase of occupied properties. However, these types of mortgages usually have much stricter conditions than normal mortgages, as they involve a much greater financial risk, which means they can be more difficult to obtain.
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Buying a occupied apartment can be a great investment opportunity, but it carries significant and important risks. The success of this type of investment will depend on having done thorough research into legal issues, having a realistic budget, and being armed with a lot of patience. If you think you are willing to take on this kind of challenge, you can take advantage of a great opportunity, as these types of transactions can offer high returns in the real estate market, which is currently developing this year.
If you think you would be willing to invest in the purchase of a squatted apartment, you should carefully evaluate all the options available to you so that you can take advantage of the best opportunities and invest wisely with an eye to the future.
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Funded:
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Objective:
1.057.019,75 €
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