Understanding the Sale Price Balance in Real Estate
Il existe une multitude de termes financiers en immobilier, et parmi eux, la « Balance de Prix de Vente » (BPV) se démarque. Mais qu’est-ce que c’est exactement ?
Focus on the BPV
BPV, often referred to as sales balance, is a form of debenture. In simple terms, it is a loan granted by the seller to the buyer during the sale of real estate. Instead of receiving the full payment immediately, the seller agrees to lend part of the amount to the buyer. This debenture can then be used as a down payment for the buyer. Debentures differ mainly in the associated guarantees.
Dans le cas de la BPV, la garantie est généralement liée directement à la propriété et enregistrée au registre foncier. Si une hypothèque bancaire est déjà en place, elle prend une position « senior », tandis que la BPV prend une position « junior ». En d’autres termes, en cas de défaut de paiement, le créancier senior doit être remboursé en premier.
Why use a BPV as a buyer?
- Less initial capital required: BPV makes it possible to acquire a property that might otherwise have been out of financial reach.
- Increased return: By investing less, the return on investment can be higher.
- Seller Confidence: If a seller agrees to a BPV, it often indicates confidence in the value of the property.
- Flexibilité des prix : La BPV peut permettre d’accepter un prix d’achat plus élevé sans compromettre le rendement. Price flexibility: BPV can make it possible to accept a higher purchase price without compromising performance.
Why use a BPV as a seller?
- Optimal selling price: The BPV can justify a higher selling price.
- Accelerated sales: Offering a BPV can attract more potential buyers.
- Tax deferral: In certain cases, it is possible to defer part of the capital gains tax.
- Advantageous interest rates: Compared to other low-risk investments, BPV can offer a better return.
When to consider a BPV?
- If the seller has a low loan-to-value ratio.
- If the tax value of the property is not too low.
- For properties that have been on the market for a long time.
- Whether the property has appreciation potential.
To deepen your knowledge of real estate, you can consult our various articles in the education section.
