Less solicited and less common than traditional real estate investment vehicles, bare ownership (nue-propriété) nonetheless represents an interesting diversification opportunity for one’s portfolio, offering various tax and asset-related benefits in addition to a significant discount on the purchase price. For the first time, on Tuesday, October 18, 2022, during the 2nd investment evening, IKORY PROPERTIES will present an exclusive selection of new assets in bare ownership in Courbevoie and La Ciotat, at a discounted purchase price of 37%.

A simple and constraint-free investment opportunity Based on the division of the constitutive rights of full ownership, usufruct and bare ownership, this structure offers an attractive solution to become the owner of a real estate asset with a significant purchase discount, all within a long-term perspective.

Thus, the investor acquires the bare ownership of the property and grants the use (usufruct) to a third party for a contractual period generally exceeding 10 years. The division establishes a distribution of obligations and responsibilities towards the management and costs related to the property. As a result, the bare owner does not bear the management constraints of the property during the entire division period, nor the risks of leasing uncertainties, which are covered by the usufructuary.

When the usufructuary is an institutional or non-institutional lessor, the assurance of a restitution in good habitable condition at the end of the term is a significant advantage. This is the case for the properties offered by IKORY PROPERTIES, for which the division period is set between 15 and 20 years.

A set of advantages for the investor In addition to the absence of constraints and the advantage of a 37% purchase discount for the properties offered by IKORY PROPERTIES, bare ownership presents other benefits:

• No financial burden: according to Articles 605 and 606 of the Civil Code, maintenance costs, rental charges, and repairs are the responsibility of the usufructuary. Therefore, the bare owner does not have to pay anything for the property during the investment period. Furthermore, at the end of this period, automatic access to full ownership for the investor occurs without additional costs.
• Optimized taxation: indeed, bare ownership is not subject to IFI (French Wealth Tax). Since property tax is paid by the usufructuary, this investment presents undeniable tax advantages. In addition, there is a reduced taxation on capital gains at the end of the division and a lightened tax burden in the case of donation or transmission (with taxes calculated based on the value of bare ownership rather than the market value of the property).

Less frequent than conventional rental investment opportunities, “bare ownership deserves attention,” emphasizes Waqass Maqbool, Director of IKORY PROPERTIES. Being a long-term investment with often positive property value appreciation, this diversification solution, in addition to its tax and asset-related advantages, is also a good way to shield against real estate market fluctuations.

Access to Grand Paris at €5,000/sqm or La Ciotat at less than €3,500/sqm As an example, during the investment evening on Tuesday, October 18, IKORY PROPERTIES will offer in bare ownership a 70 sqm T3 apartment on the 6th floor with 5 sqm of outdoor space in Courbevoie, a municipality in the Grand Paris area driven by the economic dynamism of La Défense center, at €360,360, or €5,155/sqm, while the median price is around €8,000/sqm.

Similarly, potential investors will have access, in bare ownership, to a 76 sqm T4 apartment on the 4th floor with 8 sqm of outdoor space in La Ciotat, for €262,100, or €3,258/sqm, whereas the median price is around €5,800/sqm.

Bare ownership thus offers the opportunity to access high-demand areas while benefiting from the discount (which corresponds to the sum of theoretically collected rents during the division period), resulting in a much more affordable price per square meter. “However, this solution should be carefully considered. It requires a long-term financial basis since the bare owner doesn’t receive any income during the division period,” clarifies Waqass Maqbool. “We especially recommend it to seasoned investors who wish to diversify their real estate portfolios without the constraints and charges of traditional rentals. It’s also well-suited for individuals wanting to prepare their succession through a less costly transfer of their assets.”

Potential buyers can already register on the dedicated website to access the list of properties offered for investment during the evening of Tuesday, October 18, which will take place at 6:00 PM at Salons Hoche, 9 avenue Hoche, Paris 8th.