When it comes to the pricing of a life rental property, most life rental projects are actually evaluated based on the local real estate market, the so-called market value model. Simply put, a life rental property will act for the same price as other ordinary homes as they would sell. The process is driven by supply and demand, as is the rest of the real estate market. A specialist would be called upon to evaluate a sale price and conduct a comparative analysis of the market. The analysis focuses on similar properties that are listed or listed in the area. The process takes into account the size and style of real estate compared to more expensive living rental and also takes a look at offers that have been sold or expired in the past. This gives an overview of the prices for which different houses are sold, prices currently charged in the local market and prices that have not been sold in the past (and have therefore expired). After collecting and adapting all the information to use it for the marketed property, the sponsor can put the property on the market. Prices of living dwellings therefore vary and increase with the rest of the market and are traded as such. The only exception that might be found is that living dwellings are on average only a little cheaper than comparable homes, usually to compensate for the fact that residents have to commit to paying a monthly fee. It is perhaps a little strange to imagine that a lease is trading at about the same market value as a full-fledged real estate.
We all know the concept of subletting or transferring a regular lease to another tenant, but none of the above relationships behaves in this way. This is where the term “rental” in the name can become a bit confusing, because it is not the type of leasing that we are used to hear about everyday life. Nevertheless, it is still a rental contract and can still be bought and sold at market price. How does it work? In fact, it`s very simple. The buyer receives what is called a “right to occupy” of this land, and it is something that may be in possession. In other words, the buyer buys a contract that gives him the full right to reside in the unit, and that contract belongs to them. This right and the benefits that flow from it therefore belong to the person who purchased it. Even if the buyer does not own the building or has his name on the title of the land, they have the exclusive right to reside there. That is why the simplest thing is to consider this treaty as an asset. This asset, like any other, increases or decreases in price with the local market and can estimate or depreciate a value similar to ordinary real estate. It also means that in a cheap, living tenants are able to appreciate their homes in value similar to ordinary homeowners.