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RENT TO BUY?

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  • 08-06-2011 4:31pm
    #1
    sadiej
    Closed Accounts Posts: 3 ✭


    HI, I WAS JUST WONDERING IF ANYONE KNOWS OF ANY PROPERTIES THAT ARE FOR SALE BUT HAVE THIS OPTION AVAILABLE. WE LOOKED AT A PLACE IN MEATH BUT THE TRAVELLING BACK AND FORTH TO DUBLIN WAS TOO MUCH WITH TWO KIDS IN TOW. IDEALLY, WE WOULD LIKE THE NORTH DUBLIN AREA BUT ANY ADVICE WOULD BE MUCH APPRECIATED :)


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    #2
    testicle
    Closed Accounts Posts: 5,430 ✭✭✭testicle


    Oh dear God. People still think these are a good idea???


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    #3
    Tigger
    Closed Accounts Posts: 16,705 ✭✭✭✭Tigger


    sadiej wrote: »
    HI, I WAS JUST WONDERING IF ANYONE KNOWS OF ANY PROPERTIES THAT ARE FOR SALE BUT HAVE THIS OPTION AVAILABLE. WE LOOKED AT A PLACE IN MEATH BUT THE TRAVELLING BACK AND FORTH TO DUBLIN WAS TOO MUCH WITH TWO KIDS IN TOW. IDEALLY, WE WOULD LIKE THE NORTH DUBLIN AREA BUT ANY ADVICE WOULD BE MUCH APPRECIATED :)


    these are a great idea
    it avoids rent being wasted and allows you to build up a deposit and therefore be able to buy. it also means you won't have to move home when you transfer from renting to buying.

    people keep going on about house prices falling but sure if your house is 150k an dits falling by say 6% a year then it is loosing 9k a year in value

    but if you rent it gonna cost you that much anyway so where is the issue.
    house prices have never been such good value and this is a painless way to get on that ladder.


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    #4
    not even wrong
    Registered Users Posts: 480 ✭✭not even wrong


    Tigger wrote: »
    people keep going on about house prices falling but sure if your house is 150k an dits falling by say 6% a year then it is loosing 9k a year in value

    but if you rent it gonna cost you that much anyway so where is the issue.
    The issue is mortgage interest, which you have left out of your comparison. You are losing 9k a year in value, and on top of that you're paying out another 7-8k in interest to the bank. Mortgage interest is dead money.

    (Also house prices are falling by 12% a year not 6%.)


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    #5
    noxqs
    Registered Users Posts: 413 ✭✭noxqs


    house prices have never been such good value and this is a painless way to get on that ladder.

    Surely you're being sarcastic?


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    #6
    Tigger
    Closed Accounts Posts: 16,705 ✭✭✭✭Tigger


    noxqs wrote: »
    Surely you're being sarcastic?

    i've been told to find a new way to express my feelings about the housing market, so yes i'm very being sarcastic.


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    #7
    snubbleste
    Banned (with Prison Access) Posts: 31,117 ✭✭✭✭snubbleste


    This thread belongs to 2005.


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    #8
    the_syco
    Registered Users Posts: 37,299 ✭✭✭✭the_syco


    Tigger wrote: »
    i've been told to find a new way to express my feelings about the housing market, so yes i'm very being sarcastic.
    Try adding about 15 smilies to your post :P


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    #9
    ShadowHearth
    Registered Users Posts: 22,929 ✭✭✭✭ShadowHearth


    Can anyone actuolly explain how such things work? As I have seem few properties with this.


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    #10
    sadiej
    Closed Accounts Posts: 3 ✭sadiej


    Hi Guys, the older rent to buy schemes seemed to have turned people off the newer version which goes by the value of the house at the time of purchase, in the one we looked at, if the bank valued the house at a lower value then the original price then that was the price you purchased at less the amount that you've built up in rent over the two years. The deposit wasn't much either so it seemed like a good deal


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    #11
    testicle
    Closed Accounts Posts: 5,430 ✭✭✭testicle


    sadiej wrote: »
    Hi Guys, the older rent to buy schemes seemed to have turned people off the newer version which goes by the value of the house at the time of purchase, in the one we looked at, if the bank valued the house at a lower value then the original price then that was the price you purchased at less the amount that you've built up in rent over the two years. The deposit wasn't much either so it seemed like a good deal

    How much is your rent? How does it compare to other similar houses? Does all of it go towards the purchase price?

    Is the deposit comparable to market deposits for renting, i.e. 1 month? If you decide not to go through with the purchase, is it refundable?

    Who decides the value of the house at the time of purchase? Is it negotiable?

    Will you get a mortgage for the eventual purchase price? What happens if you don't?


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    #12
    Zamboni
    Registered Users Posts: 4,305 ✭✭✭Zamboni


    Tigger wrote: »
    i've been told to find a new way to express my feelings about the housing market, so yes i'm very being sarcastic.

    I like the new Tigger.


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    #13
    sadiej
    Closed Accounts Posts: 3 ✭sadiej


    testicle wrote: »
    How much is your rent? How does it compare to other similar houses? Does all of it go towards the purchase price?

    Is the deposit comparable to market deposits for renting, i.e. 1 month? If you decide not to go through with the purchase, is it refundable?

    Who decides the value of the house at the time of purchase? Is it negotiable?

    Will you get a mortgage for the eventual purchase price? What happens if you don't?
    The rent was 800 per month, the mortgage would've been cheaper eventually but I thought compared to renting somewhere for around the 800 and having to save near enough the same amount to have enough for a deposit was a good way of doing it, bearing in mind I have creche fees for two children.

    the purchase price was 169000 (originally they were up over 300k) and that was when you rented it. A valuer from the bank you are getting your mortgage was who valued it at the time of purchase.

    While the rent is not refundable, neither is rent that I am paying now, if the purchase didn't go ahead then I wouldn't have cosidered myself to have lost out because I have to pay rent anyway


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    #14
    elawlor2011
    Closed Accounts Posts: 4 ✭elawlor2011


    Has any one done rent to buy in Meath? preferably in the Navan area. Myself and my fiance are thinkin of doing this next spring as we wouldnt get a mortgage, Im only working part time and were only 22. My understanding is that you work out a deal with your landlord, there is no set scheme. can any one offer me advice and opinions????


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    #15
    daltonmd
    Registered Users Posts: 1,246 ✭✭✭daltonmd


    sadiej wrote: »
    The rent was 800 per month, the mortgage would've been cheaper eventually


    After how many years though? If you fix now for 5 years - your mortgage will be more expensive for the next 5 years, when you go to fix for another 5 then it will be more expensive again. . Add on to that property tax, water charges and lower income and you will find yourself wishing for your 800 euro rental.


    If you cannot afford to save and rent for a home simultaneously, then the harsh reality is that you cannot afford to own a home - because servicing a mortgage amounts to that - if you get my drift.

    daltonmd


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