Let to Buy what do you think!

Baby75

My Husbands parents saw this and we opened it to have a look as we are renting at the minute but like every one want our own house eventually.

But while I do think these schemes are good but they do raise a lot of questions, Ive heard of other ones were they take all the rent you have paid in the 2 to 7 years renting as a deposit towards the house if you decide to buy. I cant find the link now for the other one sorry about that.

http://www.sothern.ie/
LET TO BUY:
Monaco Properties are willing to lease the 3

bedroomed

terraced and semi detached houses for €1,000 per month for a maximum period of 2 years with an option to buy at today’s prices. Should the tenant decide to purchase within the 2 year time frame 50% of the rental paid will be refunded to the tenant / purchaser. 4 / 5

bedroomed

units are available to rent at €1,500 per month.
A deposit equivalent to 1 month’s rent will be payable on signing of lease.
In the unlikely event of a price decrease taking place within the rental period this will be passed on to the tenant / purchaser.
DISCLAIMER:
Please note that the above represents a brief outline of the price guarantee and let to buy scheme. Full details will be provided with each lease agreement or contract. Neither Monaco Properties nor

Sothern

Real Estate Alliance can be held responsible for any inaccuracies contained above nor can this explanatory leaflet be construed as a contractual document.

1, for carlow the rent is a bit high and while we are renting a 3 bed house, with 4 young children we need to buy a 4 bedroom, so that would make it 1500 a lot of money not many at the minute could afford.
2, as only half of this is used as a deposit I'm right in thinking you would still need to make it add up to 30% of the asking price!
3, will the house prices drop further and how can we be guaranteed we will see the reduction when and if you do decide to buy at the end of the two years.
4, with nearly every one on the dole at the minute even if you wanted to get the house had your deposit saved what are the chances of getting a morgatage in two years will it be very hard.(when you do have a job how much good banking history do you need now)
what do you think

Senna

1. How much could you rent a house like that for privately? (Remember that a lot of people are getting discounts of the advertised rent price)

2. You would need to do the maths yourself, at the moment you could probably get finance for 92% of the purchase price, but in 2 years time that could change. I would say you should have a 20% deposit, it will put you in a better situation when applying for a mortgage if you have a larger deposit.


3. Will they drop further from today's prices, YES. But how much and for how long is only a guess. But with rising unemployment and all workers losing more of their disposable income next week, i cant see how prices could stabilise in the next 1/2 years.


4. The chances of getting a mortgage is probably better in 2 years time than it is now, but if you go for these schemes, you will be looking for a mortgage at 2009 prices in 2011. Bank valuations are coming in lower for house prices agreed only a couple of months ago, there is no chance of the bank allowing you to buy a house at a 2 year old valuation.



These schemes are not worth it, you pay more rent for the next 2 years, you have to try and get a mortgage in 2011 for a 2009 price and dont expect the developer to renegotiate with you in 2011. That wont happen, it will be far better for them to keep your deposit in 2011 and sell the house to someone else for cheaper, meaning they get the house sold for the 2011 price while also keeping your deposit.
Find the cheapest place to rent, renegotiate that rent every year and save the difference. You will be more mobile in 2011 and not be tied to a scam that leaves you worse off than if you were renting and at square one again with no deposit.

It would be a good scheme in a stable or increasing market, but suicide in a falling market.