Rent-to-buy Scheme Dublin

Oliver1985

EF wrote: »

Just for your info I bought a 3 bed house near those for 95,000 less than that 2 weeks ago. You would be crazy to buy into this scheme

Where abouts?

Del2007

hey guys im new to this, i just was wondering is there any 3/4 bed houses around north side dublin, im not interested in balbrigian, was looking for around the donaghmede, raheny, kilbarrick even finglas, area,
thank you for your help,

dblennon

Del2007 wrote: »

hey guys im new to this, i just was wondering is there any 3/4 bed houses around north side dublin, im not interested in balbrigian, was looking for around the donaghmede, raheny, kilbarrick even finglas, area,
thank you for your help,

I would get onto a broker and ask about Belmayne I have heard rumours that they are accepting RTB but you have to sign a contract to purchase after the agreed period.

infact I asked about the properties in red arches they're 3 bed duplex's but they said it might be possible aswell, I thought the managment fees were ridiculous though.

Del2007

thanks dblen, so what sort of broker do I contact? Have u got ant were yet?

Harry Flashman

I am trying to get a rent to buy house. So far I have looked at a number of schemes. Some of them are offering staged payments deals without a standard lease and a contract to buy at the end of the term. I've looked into this and my brief said you must have a lease and an option to buy at the end. Otherwise if its a caretakers agreement you'll be saddled with BIK. BEWARE

The other worry is the % refund on the rent. Some only give 50% or less of the rent back. If its over 2 years this wont work unless you have savings to add to the pot. As far as im concerned any scheme should give at least 10% rent back or your pi**** against the wind. The only scheme that seems to tick all the boxes is www.purplepig.ie. as in they give 100% rent back and a large refund with a proper lease and option to buy. But that's no use to me because all their developments are in the sticks. Does anyone know of any schemes in dublin that give 100% rent back. Cheers,,,

mrgaa1

I looked long and hard at this place http://tinyurl.com/qywormwho were looking at doing the Rent-To-Buy. It was based on a small down payment, 5 grand I think, plus monthly rental of 450 for two years. At the end you bought the house and all monies paid came off the house price. However they've just dropped the house now. I think the house price previous was 160k or something like that. A bit cheaper now. If only 100% mortgages were available. I've paid rent of nearly 500 for nigh on 7 years and I'm still in the same place

ionapaul

mrgaa1 wrote: »

I looked long and hard at this place http://tinyurl.com/qywormwho were looking at doing the Rent-To-Buy. It was based on a small down payment, 5 grand I think, plus monthly rental of 450 for two years. At the end you bought the house and all monies paid came off the house price. However they've just dropped the house now. I think the house price previous was 160k or something like that. A bit cheaper now. If only 100% mortgages were available. I've paid rent of nearly 500 for nigh on 7 years and I'm still in the same place

Wow, you're a big fan of that developement mrgaa1! Have seen you link to it a few times here and on the propertypin.

You're not a Cavan EA, correct? I think you denied it before.

Saganist

Is this option worth while nowadays ? Fixing into a price in this moment... Is it right or are we looking at even heavier price falls over the next two years ?

shoegirl

AARRRGH wrote: »

Btw, I save over 1k per month and I rent and have a fairly high standard of living. Yes, at only 1k per month it means I would not have a deposit for a few years, but I should not expect to be able to buy a house whenever I want to.

Would really love to know what your job/income is, that yu can afford to save 1k a month!

Only person I've ever known to be able to save that much was a contractor earning 78k per annum. Be fair on renters who are caught between the twin stones of relatively high rents and low incomes. Not everybody finds it possible to earn more than an average salary

One thing I have noticed in my 13 years of renting is that you very much get what you pay for, and cheap rent almost inevitably means low quality accomodation or a long commute.

There is a real need for hybrid models of housing for people for whom the traditional buy/private rent models are unsuitable. Its all very well talking about the private rented model are ideal while most people in it are the 20-40 age group, it could become very problematic if this became the norm for people in their 60s who could then end up being forced to work into their twilight years due to small pensions or else end up homeless if they were unable to work. The current models don't really cater for a whole of life need for everybody, what is now a total crisis for lone parents will be joined in 20 years time by childless elders.

Bambi86

Yes or no to rent2buy? Im a first time buyer and cant really afford to aggressively save for a deposit. Is there anyone out there that has gone with rent 2 buy? Or has anyone got pros and cons they could give me about the scheme?

padraic83

i am seriously considering this scheme

Was hoping could anyone tell me if there is any developments in Dublin which is currently rent2 buy

In a good area would have a budget between 220-300000

any help would be appreciated

pm me if you know of such developments

D3PO

Bambi86 wrote: »

Yes or no to rent2buy? Im a first time buyer and cant really afford to aggressively save for a deposit.?

This statement tells me your not in the right mindset to buy and will struggle to balance your budget with a house purchase.

If you cant save a deposit ask yourself why ? Its either becasue your living to the pin of your collar whilst being frugal in which case you have to realise interest rates are going to increase significantly in the next 18 - 24 months which would mean your going to put yourself into financial trouble purchasing a house

or your earning plenty but jsut as good at blowing it on things like clothes, holidays etc. In which case your going to need to learn some money management before purchasing.

Theres a reason why 100% mortgages are no longer available. If you cant save a deposit you shouldnt be buying a house

D3PO

padraic83 wrote: »

i am seriously considering this scheme

Was hoping could anyone tell me if there is any developments in Dublin which is currently rent2 buy

In a good area would have a budget between 220-300000

any help would be appreciated

pm me if you know of such developments

and how do you figure that ? Its no coincidence rent to buy only cropepd up when the downturn happened.

a house work 220 - 230k will most probably be worth 200 - 210 in a years time, your "deposit" wont do anything to create a proper deposit for you. its jsut a way for the builder to create cashflow.

besides which how do you know what your budget is ? You wont be able to apply for a mortgage until its almost time to purchase, the likelyhood is the house will be worth less than the sale price and the bank wont lend you the cash.

rent 2 buy doesnt work as a scheme. People can post here to say there in the scheme and its great but NOT ONE person has ever come on here to actually say they closed on a rent 2 buy and it was a great way to purchase.

that speaks volumes.

Lillylilly

D3PO wrote: »

People can post here to say there in the scheme and its great but NOT ONE person has ever come on here to actually say they closed on a rent 2 buy and it was a great way to purchase.

I'm 8 months in to a rent to buy scheme! I'll let you know how I get on

TootsMcToot

We are nearly seven months into our rent to buy scheme. We approached auctioneers to see what was available on their books with regard to RTB, alot of them didn't have anything to offer.. alot of builders were steering clear of it. We did find one that had something decent to offer, and after alot of mooching with both legal teams we have reached an agreement whereby both parties are vetted for.. we pay our 10% over two years and then have the option to purchase at the then current market rate, if the house price is higher than the agreed price of 2009, we still purchase at the price originally agreed. If we somehow magically come into a lot of money, we can purchase before the two years are up, any rent paid beyond the 24 month term is non refundable, all rent payments received within the 24 months is 100% refundable toward the total house price.

In the respect of the Landlord/Builder, he was obviously happy to have someone in the vacant house, earning money and keeping his bank manager happy. Our estate is not quite finished yet but there are about four houses vacant of the current phase, the builder has foundations in for all proposed houses but will only build more when the demand is there. Seems like good business sense to me, especially when another builder down the road has built all his 150+ house and not ONE is occupied!

We both feel we got a good deal, and our landlord/builder couldn't be more helpful, if there are any problems he is very approachable. Perhaps we got one of the good guys!

gucciali

nice to hear some positives about the rtb scheme myself & my partner are thinking of buying a house and after much discussion we decided we would go down the route of 10 % deposit which would take us two or more years to save which is fine . Now after hearing about the RTB scheme it seems we can still buy a house very soon if we go down the RTB route .

So , which is better? , buy now via RTB ? or save and buy in three years time? , isn't it all the same in the end ? doesn't it just mean with RTB you can get there sooner ???????

MKJNR

What do you make of this..

http://www.dublincity.ie/housing/renttobuyscheme/Pages/default.aspx

Idbatterim

ntlbells comment about the car made perfect sense, move within walking distance of work, pay a little extra rent, save alot on not having to tax, insure, nct, maintain, repay and fuel a car (oh and pay for parking)!

_Kaiser_

I hate to say this (and no offence intended to anyone on this thread), but one thing threads like this tell me is that we haven't learned a thing from the last 2 years!

Now that the government (the same government that led us to the collapse of our economy and then bailed out those responsible) have told us that "we've turned the corner" (in fact we've turned so many corners at this stage that we're going in circles!), everyone is itching to start buying houses again! :mad:

Seriously, how stupid as a nation are we? There's massive unemployment, huge national debt (that WILL have to be repaid incidentially - despite what we were all led to believe in the last 15 years, there is no such thing as free money), and the "good times" are most definitely over and will not be coming back.

Our Celtic Tiger advantages of easy access to the EU market and an educated english-speaking workforce have been overshadowed by 3rd world infrastructure (particularly outside the major cities), ever-rising costs and the availability of cheaper workforces further east.

As for these Rent to Buy schemes.. I looked in to these about 18 months back and walked away when even the simplest of questions like "What happens if the price goes down at the end of the term", or "who's responsible for maintenance etc during the lease" couldn't be answered.

Other threads on this here have shown there's various other financial and legal questions yet to be answered, and they won't be until the first of these schemes come to term (probably within the next 6 months or so), and then we'll see how viable they are.

I'm not saying people shouldn't buy houses anymore, but no-one NEEDS to buy a house really (in Germany for example about half the population rent, and it's the same in other European countries - but admittedly more work is needed here to encourage long-term leases and security for both parties), and we need to stop walking blindly into what is the bigest financial obligation we'll ever have without all the facts - instead relying on what the estate agent or developer tell us - otherwise we will simply be doomed to repeat the same property bubble fiasco that has the country in the mess it's in.

something special

Can anyone tell me if they know of any schemes that work the other way. I have a property and I want to know if there is anyone that buys property of me and let me rent it back again from them. Otherwise is there anyone who does quick cash sales

Mr. Loverman

gucciali wrote: »

So , which is better? , buy now via RTB ? or save and buy in three years time? , isn't it all the same in the end ? doesn't it just mean with RTB you can get there sooner ???????

If you wait three years you get to pay whatever the price is in three years. This will probably be about 40 - 50% lower than the prices you see today.

If you RTB now, you are locked into paying today's price in three years time, so from a financial perspective RTB is a terrible deal.

Senna

something special wrote: »

Otherwise is there anyone who does quick cash sales

Price the house correctly and you'll get a quick sale. The right price could be 10/20/30/40/50/60% less than houses advertised around you.

ricman

if you are paying more than 200k for an apartment ,in an average area, ,you are paying too much,
search daft ie, houses and apartments 200k or less dublin northside.

murphym7

Mr. Loverman wrote: »

If you wait three years you get to pay whatever the price is in three years. This will probably be about 40 - 50% lower than the prices you see today.

If you RTB now, you are locked into paying today's price in three years time, so from a financial perspective RTB is a terrible deal.

Not correct, you can walk away losing what you have paid (which is really only rent anyway) and if you are right about another 50% drop in house prices you will be quids in anyway and houses will basically be free. Another 50% drop, that's a good one, I needed a laugh this morning.;)

ricman

the most severe drop will be in apartments in large blocks, or houses outside the citys.There has been price drop of 60 per cent in some areas, outside dublin.Theres apartment blocks that are half empty in some areas.

Mr. Loverman

murphym7 wrote: »

Not correct, you can walk away losing what you have paid (which is really only rent anyway) and if you are right about another 50% drop in house prices you will be quids in anyway and houses will basically be free. Another 50% drop, that's a good one, I needed a laugh this morning.;)

I take it you're not very good at maths?

Example:

Owner wanted 400k for apartment in Stillorgan
40% price drop brings it to 260k
50% price drop from here brings it to 130k

There is a crazy amount of evidence Ireland has at least a decade of pain ahead of itself. You really have to be deluded to think we are at the bottom or near the bottom.

EDIT: We haven't really had a 40% drop yet (don't believe the estate agents). Look at how expensive apartment asking prices are in Stillorgan on Daft...

bureau2009

Mr. Loverman wrote: »

There is a crazy amount of evidence Ireland has at least a decade of pain ahead of itself. You really have to be deluded to think we are at the bottom or near the bottom.

I couldn't agree more. Buyer - beware and be EXTREMELY careful. If you are absolutely bursting to buy why not wait AT LEAST until Easter to confirm the ongoing downward trend in property prices?? (and save yourself tens of thousands of euro in the process)

ricman

I Notice that theres some 2bed apartments going for around 120k in dublin
,i remember when it was 150k for a one bed apartment anywhere in dublin.i think prices will go down for another 2 years.

Mr. Loverman

People need to remind themselves as well that each price drop can be doubled or tripled when interest is taken into account.

For example, a 20k price drop in property prices means somewhere between 40k - 60k saved over the life of your mortgage. For most people that's more than one year of work... when I think of it like that it makes it very easy to wait before I buy.

TootsMcToot

Any good solicitor will get your back on this one provided it has been set out in the legal pack before signing!