Partial sale disadvantages? Conditions: Usage fee, total sale – experience

Partial sale makes sense? – More and more people are thinking about the partial sale of their property, whether it is a house, an apartment or a plot of land. But, can a partial sale have disadvantages? In this short guide I want to point out the conditions of the providers and companies, more precisely: user fee and sum of the total sale (after X years). Tip. I have compared the most important partial sale providers, their disadvantages, advantages and conditions for you with usage fee and total sale amount: Partial sale provider comparison.

What does real estate partial sale?

In the case of a partial sale, you sell a share of your property and thus become a homeowners’ association or condominium owners’ association consisting of two parties. Since you remain the sole user, the finance company charges you a monthly usage fee. In order for the calculation to be correct, you must know the current market value of your property.

The most important questions before the partial purchase / partial sale

The most important questions at a glance:

  • Can I sell half of the house? Yes, most sellers ~ 20-50%.
  • Can I sell part of my apartment? Yes.
  • Partial purchase also for land? Yes.
  • Advantage? Fast, uncomplicated purchase price transfer.
  • Disadvantage? User fee (~ 3% p.a.)
  • Moreover, for total sale: sometimes below inflation

The important factors in the purchase of parts

The key factors for the partial sale:

  • Value of the property = 500,000 euros
  • Desired immediate payout = 100,000 euros
  • Share for sale = 20%
  • Monthly usage fee = ?
  • (if) total sale after X years = ?

You have to answer two key questions in the comparison:

  1. What is the monthly usage fee?
  2. (At total sale, later) appreciation and fees?

Tip. After the ranking you will find advantages, disadvantages and tips (early inheritance, donation, usufruct, etc.). More about the factors, advantages and disadvantages in the XL Guide: Partial sale.

Does a partial sale make sense?

Factor 1: Usage fee = how high?

We want to find out how much the monthly usage fee is – all important calculators, a comparison! For this, we use the public calculators of the individual providers and show you the results in our example here. Our basis is a property, whether a house or an apartment.

Factor 1: Property value and share

  • Value of the property = 500,000 euros
  • Share for sale = 20%

Also for partial ownership of apartment buildings, for example, in the 5-party house, in the country:

Likewise for condominiums in the city center:

Factor 2: Total sales after X years

In step 1, you sell only part of your property. However, all of them also offer the option to sell the entire property in X years, including the value increase. If you take advantage of this option, the 1) increase in value that the individual providers apply and 2) all charge a fee, this is of course also different.

Therefore, we also compare here the second step, the total sale of the house and apartment, including the fees.

Factor 2: Total sales after X years

  • Example: Sale after 15 years

An important tip for selling in 10, 15 or 20 years.

Differences in cost of use and value appreciation

Differences – The providers hardly differ in the monthly usage fee. The main difference is the subsequent total sale, which all providers offer as an option directly after the partial purchase.

Appreciation and inflation – Take inflation into account! 2% regular according to ECB, if 20% appreciation after 10 years it is a zero deal.

Let’s start now with the comparison of the providers (as of 01/22).

I want to mention again that these are only the providers with transparent online calculator. For the calculation to be correct, you need to know the current market value of your property.

Tip. Find the best provider

I have compared the most important partial sale providers, their advantages, disadvantages and conditions for you! Simple, understandable and clear.