Our Home is Our Wealth, But Our Refrigerator is Empty: A New Way Out for Elderly Homeowners in Portugal

When you take a look at Portugal's real estate market these days, you realize how clear the situation is. Almost a quarter of the population is over the age of 65, and we have a very striking figure: We are talking about more than 700 thousand houses belonging only to people aged 70 and over.

So, what does this mean? There is a huge real estate fortune; However, unfortunately, retirees living in these properties do not have the same comfort in the face of increasing living costs. Its walls are brick, its roof is tile, but there are thousands of people who are tired of calculating the budget in the kitchen.

Is It Possible to Improve Quality of Life Without Moving?

At this point, when we think about the realities on the ground, very logical models begin to emerge. A local initiative called Empathia offers a very practical solution to this issue. According to research, it is estimated that the over 65 population in Portugal will jump to 33% by 2050. This means that if we do not produce permanent solutions today, the lives of our elderly will become much more difficult in the coming years.

According to the company's calculations, approximately 200 thousand of those 700 thousand houses belonging to people over the age of 70 are perfect for the sales model with usufruct rights. In fact, this is something that has existed legally in the Portuguese Civil Code for years; But until now it has always been used within the family or in very limited circles. Now, with the increase in financial literacy, this method has started to find more space on the scene.

Unleashing Capital by Staying at Home

The logic of the system is actually quite simple. As Pedro Almeida Cruz, the founder of Empathia, stated, there is a whole generation that has a serious real estate fortune but is suffering because they cannot turn it into cash. The main goal here is to make the capital in that property functional without tearing people away from the neighborhood they love, the house they are used to or their neighbors.

One of the nice aspects of the job is that it is not limited to just the title deed transfer. They are trying to create an ecosystem from health insurance to home care and even various aids that will make daily life easier. Because for an elderly person, peace, health and comfort are more important than money. They want to support their grandchild or cover an emergency medical expense without worrying.

After all, the issue is not just about how much the real estate costs. The real issue is how the value behind those concretes can offer people a more comfortable life at the age they need it most.

Source: Idealista (Cátia Colaço)