Sometimes, finance proposes its semantic trompe-l'oeil. A confusion that mixes syntax and algebra, as happens between the reverse mortgage—to which the central text has been dedicated—and the reverse home. If a definition had to be formulated with the sobriety of financial books. It could be like this: it is a financial instrument aimed at people over 65 years of age who own a house free of encumbrances. The index, like a good book, consists of transforming the value accumulated by the home into a source of regular income or opting for a single payment, without having to leave it or sell it. The owner obtains an income or income per month and the total is reimbursed when the person dies or moves permanently. It is an option that some entities offer but the star continues to be the reverse mortgage. Although there are exceptions. Felipe de los Ríos, general director of Almagro Capital, has faith and hope in reverse housing, an instrument in which he believes a lot. Before entering the space of numbers, the perception of the elderly person is unique. “You will be able to continue living at home. [lo que para los mayores es esencial muchas veces] and you will have the liquidity that, for example, will help you remodel the house [algo tan simple e importante como el plato de ducha en vez de la bañera]In addition to income for leisure, the formulas are safe and are also regulated,” he explains. The regulations are the Rossetta stone that narrates distrust. Along with extra income for those who need it during a difficult time, this amount can be received in lump sum payments, such as a line of credit or a lump sum. Felipe de los Ríos' strategy, which he tells in the forum, is to be present both in the long term and in the short term of the client's needs. In case one day you need a specific amount of money.
Life annuity, another option
The annuity is an option, already mentioned, in which some experts prefer not to enter. “It is the same as acquiring bare property, but instead of giving the client a significant amount [porcentaje del valor de su casa] You are paid a monthly rent. If a misfortune occurs, the company would keep the property for very little money and it would be taking advantage of a person,” warns De los Ríos. “It is far from our strategy,” he adds. The mathematical logic is clear: the older you are, the better it is to subscribe to it, whether it is a reverse mortgage or, on the contrary, a reverse home, because with a lower life expectancy you will receive more money. In any case, the presence of an independent expert is always necessary to advise the parties. Not that it decides if one product is better than another, but if it suits the client or, on the contrary, other options are preferable. More information All this interest responds to a kind of new boom in the real estate world. Little by little it seems that we are heading towards a different, more controlled bubble; less explosive. The number of mortgages—according to the College of Registrars—on homes recorded in the third quarter was 109,200, a quarterly increase of 17.1%. And the total sales during the same period grew in all the autonomous communities. Andalusia (23,252), Catalonia (18,445), Community of Madrid (17,397) and Comunitat Valenciana (12,809). In year-on-year terms – sales registered in the last 12 months – at the national level, the average price was set at 2,042 euros per square meter in the third quarter, an annual increase of 4.4%. And if a number was needed to explain all this growth. Between July and September, 166,609 home sales were registered, which represents an increase of 13.9% over the previous quarter. To go into detail, in used housing, 133,917 sales and purchases were registered (13%) and the new ones closed with 32,692 transactions, an increase in those three months of 12.1%. In its particular eternal return, interest in real estate returns. And the importance between having and not owning a home increases.