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Rent to Buy Scheme - Housing

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  • 03-11-2011 1:28pm
    #1
    IggyEire
    Closed Accounts Posts: 12 ✭


    Is anyone on here doing this? Anyone recommend it?

    Are we expecting the housing prices to drop or to pick back up?

    Looking into the rent to buy scheme but need to know the pros and cons.

    Hope someone can help.


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    #2
    Victor
    Registered Users Posts: 78,402 ✭✭✭✭Victor


    Lots of the promoters aren't holding up their end of the bargain. Some are fraudsters, while others are simply refusing to sell at current prices.


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    #3
    kildareash
    Registered Users Posts: 1,531 ✭✭✭kildareash


    IggyEire wrote: »
    Is anyone on here doing this? Anyone recommend it?

    Are we expecting the housing prices to drop or to pick back up?

    Looking into the rent to buy scheme but need to know the pros and cons.

    Hope someone can help.
    Not a regular boards poster, but hope my experiences will help.

    Pros for us so far: we effectively own the house, so can decorate, Hang pictures etc
    Maintenance looked after by builders
    Builders have been very easy to deal with thus far

    Cons: the banks, difficulty getting mortgage because of rent to buy

    Also helps that all our immediate neighbours signed up at same time as we did, so we've been able to keep one another informed if we've heard something or vice versa.

    Pm if u want any more info. we're two and a half years into a rent to buy scheme


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    #4
    TippRugby
    Registered Users Posts: 12 ✭TippRugby


    kildareash wrote: »
    Not a regular boards poster, but hope my experiences will help.

    Pros for us so far: we effectively own the house, so can decorate, Hang pictures etc
    Maintenance looked after by builders
    Builders have been very easy to deal with thus far

    Cons: the banks, difficulty getting mortgage because of rent to buy

    Also helps that all our immediate neighbours signed up at same time as we did, so we've been able to keep one another informed if we've heard something or vice versa.

    Pm if u want any more info. we're two and a half years into a rent to buy scheme

    KildareAsh - could you send me on details of who you went through on rent to buy? Want to start looking into it but every search either goes on about rent or buying but not the rent to buy

    Thanks a million


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    #5
    the_syco
    Registered Users Posts: 37,299 ✭✭✭✭the_syco


    TippRugby wrote: »
    KildareAsh - could you send me on details of who you went through on rent to buy? Want to start looking into it but every search either goes on about rent or buying but not the rent to buy

    Thanks a million
    The thread is half a year old, and thus unlikely he shall see it. Maybe try sending the poster one private message and ask nicely for him to post you info, and/or update this thread.


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    #6
    TippRugby
    Registered Users Posts: 12 ✭TippRugby


    Will do thanks :)


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    #7
    NEDDURC
    Registered Users Posts: 452 ✭✭NEDDURC


    Are you looking for developments who are offering Rent to Buy schemes?

    One example - http://www.rent.ie/houses-to-let/RENT-TO-BUY-FERNS-CLOSE-Ferns-Bridge-Monasterevin-Co-Kildare/1146095/

    Also, Nama have launched their 80/20 mortgages on a limited basis. I believe this may be rolled out in further detail shortly around the country as most properties so far have been around Dublin and Cork.


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


    BTW, in 5 years time when you have said "deposit" made up of your rent, you'll come across two problems;

    a) bank won't accept the deposit as a deposit

    b) bank valuation of the property will have dropped, and the builder/developer of the property will not accept what the bak now thinks the property is worth.

    There's a reason why the rent-to-buy scheme only appeared when the sh|t hit the fan; it only benefits the seller.


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    #9
    MadsL
    Registered Users Posts: 20,299 ✭✭✭✭MadsL


    Gut instinct. Avoid like the plague. You could end up locked into an agreement to buy in three years when prices have fallen 20% - putting you in negative equity instantly.


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    #10
    NEDDURC
    Registered Users Posts: 452 ✭✭NEDDURC


    Most rent to buy schemes would have some element built in that would insulate you from a small price drop when you go to purchase. It therefore would be worth exploring this in more detail to the individual deal being offered.

    The NAMA 80/20 certainly insulates you against a 20% drop.


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    #11
    MadsL
    Registered Users Posts: 20,299 ✭✭✭✭MadsL


    NEDDURC wrote: »
    Most rent to buy schemes would have some element built in that would insulate you from a small price drop when you go to purchase. It therefore would be worth exploring this in more detail to the individual deal being offered.

    The NAMA 80/20 certainly insulates you against a 20% drop.

    Will it insulate against a 40% drop?


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    #12
    the_syco
    Registered Users Posts: 37,299 ✭✭✭✭the_syco


    NEDDURC wrote: »
    The NAMA 80/20 certainly insulates you against a 20% drop.
    Between the time you see the house, and the time you enter the contract, that 20% may already be gone, depending on the house, it's location, and the economy!


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    #13
    kildareash
    Registered Users Posts: 1,531 ✭✭✭kildareash


    TippRugby wrote: »
    kildareash wrote: »
    Not a regular boards poster, but hope my experiences will help.

    Pros for us so far: we effectively own the house, so can decorate, Hang pictures etc
    Maintenance looked after by builders
    Builders have been very easy to deal with thus far

    Cons: the banks, difficulty getting mortgage because of rent to buy

    Also helps that all our immediate neighbours signed up at same time as we did, so we've been able to keep one another informed if we've heard something or vice versa.

    Pm if u want any more info. we're two and a half years into a rent to buy scheme

    KildareAsh - could you send me on details of who you went through on rent to buy? Want to start looking into it but every search either goes on about rent or buying but not the rent to buy

    Thanks a million

    Sorry meant to reply sooner but never got round to it.

    Our biggest problem to date has been getting the banks to accept our "deposit".
    But developer has offered to give us a cheque next time we apply. Now we need to get our act together and apply for mortgage before developer goes bust altogether.

    On the price of the house, we've been quoted €50k less than the price we agreed three years ago, but we will offer them less again. We weren't prepared to pay that price now.

    The big negative in general is that we're stuck here basically because they have our
    Money and we don't have enough of a deposit to buy elsewhere.


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    #14
    MadsL
    Registered Users Posts: 20,299 ✭✭✭✭MadsL


    Any chance you can hold off until Govt publishes 'actual' house prices?


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    #15
    green123
    Registered Users Posts: 1,680 ✭✭✭green123


    MadsL wrote: »
    Any chance you can hold off until Govt publishes 'actual' house prices?

    when is that going to happen ? they keep delaying it.

    i agree with a lot of the negatives already pointed out but a huge plus point would be that you get to know who your neighbours are and what the area is like before you buy the house


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