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Rent-to-buy scheme - any advice?

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  • 24-03-2011 3:38pm
    #1
    celtictiger32
    Registered Users Posts: 2,488 ✭✭✭


    sorry if similar threads have been posted before, but im trying to find out some info on these rent to buy schemes theres a lot of them going close to where i am at the moment but dont know the ins and outs... i have a limited understanding that you rent for a year or two years whatever and thats your deposit paid for the mortgage can anyone expand on this or give advice????


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    #2
    JoeyJJ
    Registered Users Posts: 3,663 ✭✭✭JoeyJJ


    For what its worth I have only a limited knowledge of the schemes and each differ.

    What to look out for.
    Value of the property, if it is set now make sure its competitively priced, if it is to be set in the future, ask how they are going to calculate it and not just make up a number.
    Ensure the rent you pay down is competitive with other properties in the area, if point 1 goes t*ts up and they value way above what you expect in the future you prob won't want to proceed so you won't have paid out too much.
    Morgage, with credit tough to come by how likely are you to be offered a Mortgage and will you be offered the price the property will command? Tough question.

    There are probably loads more to look out for, generally they are only a good idea in a rising market. From what I read however I can see the appeal, however I wouldn't touch one.


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    #3
    celtictiger32
    Registered Users Posts: 2,488 ✭✭✭celtictiger32


    i think the prices are fairly reasonable its a newish development and theres prices plastered all over the place on signs etc. as far as i know its the developer thats running the scheme. i agree though the main problem could be getting the mortgage but from what i have heard from some of these schemes the developer actually organises a mortgage for you not really sure however if it applies to this one though.


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    #4
    Victor
    Registered Users Posts: 78,392 ✭✭✭✭Victor


    How do you know it isn't a scam? Some people have had their money disappear on them.

    Don't hand over **any** money before you speak to your own solicitor. "Your own solicitor" is not someone recommended by the scheme promoter.


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    #5
    celtictiger32
    Registered Users Posts: 2,488 ✭✭✭celtictiger32


    i was probably under the assumption that i would need a solicitor alright. just to make sure everything is legally binding etc. i did hear of one case where the owner gave the couple a price and was charging them 1200 p.m and he was supposed to take this off the overall price but didnt do so it left them in limbo so i think a solicitor is definately on the cards


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