In today's real estate market, one of the options that has generated the most controversy but also the most opportunities is the purchase of occupied properties. These properties, whether illegally occupied or used by tenants with a valid contract, are often sold at prices well below their current market value, which can make them a very attractive alternative for individuals such as high-risk investors.
However, acquiring an occupied property also entails legal, economic, and logistical challenges that must be carefully evaluated. In this article, we will thoroughly analyze everything involved in buying an occupied property, including the risks and benefits, the eviction process, and the key considerations for making an informed decision when purchasing an occupied property.
Buying an occupied property refers to acquiring a dwelling where someone already resides without the owner's consent (known as illegal occupation or 'okupación ilegal') or where tenants have a still-valid rental contract. These types of situations can affect the property's purchase price, legal procedures, and the subsequent recovery process.
In this type of occupancy, the occupant has a legal and fully valid rental contract, which the owner must respect until its expiration date. This can even be an opportunity for continuous income if the tenant consistently pays on time.
In this type of occupation (distinguished by the 'k' spelling, 'okupación'), the occupants residing in the property do not have the owner's permission to live there, thus requiring a judicial process to carry out the eviction, which can involve legal costs and delays.
Many owners are unable to evict the occupants from their homes, preferring to sell rather than face the lengthy legal processes involved.
Due to the challenges posed by occupied properties, many banks and investment funds sell these properties 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 an occupied apartment. However, the new owner must also assume the legal status of the property. If there are illegal occupants, then an eviction process must be initiated. And if the property has legal tenants, the current contract must continue to be respected.
You may also be interested in: what an eviction is.
First, you should look for an investment opportunity in occupied properties; banks usually sell these properties at auctions 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 with discounts of 30% or even up to 50%.
Finally, the deed must be signed, but the buyer is responsible for the eviction.
You may also 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 euros. Additionally, necessary renovations, depending on the property's condition, can entail between 10,000 and 30,000 euros.
If there are legal tenants, you must wait for their residency contract to be fully completed. On the other hand, if there are illegal squatters, an eviction process must be initiated, which can last 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.
You should check if there is a rental agreement or if it is an illegal occupation.
You should consider if significant renovations are required for the property.
You may need to incur legal expenses, maintenance costs, or potential unpaid debts associated with the property.
If the property is in a good area, this will greatly facilitate its appreciation.
It is recommended to hire a lawyer specializing in evictions if the property is under illegal occupation.
You should consider having a reserve of financial funds that may be needed to cover unforeseen legal issues that may arise along the way or renovations that need to be carried out on the property once it can be vacated.
Evictions can take months or even years, so if this type of purchase is chosen, these timelines must be taken into account.
For this type of purchase, banks often offer better conditions that are worth considering when making a decision.
Yes, this can be a much more profitable option, as occupied properties can be sold at a value between 30% and 50% lower than unoccupied ones. However, the property's location for its revaluation and the legal costs associated with the property must be considered.
This period can last from a few months to a couple of years, all depending on the speed at which the legal process unfolds, which can vary based on the required procedures, the willingness of the occupants, among other factors.
Yes, squatters residing illegally on the property can be evicted. However, this action requires a legal process involving a trial and obtaining an eviction order. Therefore, one must be prepared to face 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 act and remove the squatters.
Some banks may grant specific mortgages for this type of purchase of already occupied properties. However, these types of mortgages usually have much stricter conditions than a normal mortgage, as they involve a much higher financial risk, making them more difficult to obtain.
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Buying an occupied property can be a great investment opportunity, but it comes with very significant and important risks. The success of this type of investment will depend on thorough legal research, having a realistic budget, and being armed with a lot of patience. If you believe you are willing to take on this challenge, you could seize a great opportunity, as these types of operations can offer high returns in the developing real estate market this year.
If you're considering investing in an occupied property, you should carefully evaluate all available options to seize the best opportunities and invest intelligently with an eye on the future.
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Calle Pilar Mateo
Funded
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Target
1.167.964,69€
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