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Rent to buy

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  • 15-08-2016 2:53pm
    #1
    Philyg30
    Registered Users Posts: 7 ✭


    Hi all, just wondering if there is an option to buy a home privately through a rent to buy scheme? I'm currently not in a position to save a large deposit as I'm paying high rents .I was wondering if a landlord or home owner wanted to sell a house to
    Me at an agreed rate per month and an agreed deposit would it be applicable ?


Comments

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    #2
    the_syco
    Registered Users Posts: 37,301 ✭✭✭✭the_syco


    The bank will need to agree to it first, but by the time you buy the house, the value of the house may have risen, so your deposit may not be enough to buy the house.

    The scheme only ever favours the seller.


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    #3
    L1011
    Registered Users Posts: 68,848 ✭✭✭✭L1011


    No bank ever takes the 'rent' as the deposit, so these schemes are of no use to those who can't save beyond the rent.


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    #4
    pasquale83
    Registered Users Posts: 477 ✭✭pasquale83


    Well, this is an option of the rent to buy scheme

    http://www.city-life.it/en/rent-to-buy

    The Rent to buy is a purchasing method that allows to stipulate a residential lease agreement with the option to purchase the apartment.
    Purchasing the apartment it will be possible to recover the 75% of the paid rents (VAT excluded). In case of no purchase it will be returned a sum equal to the 10% of the annual lease rent (VAT excluded)

    Example
    Price of the apartment: € 1,200,000
    The annual lease rent will be equal to 48,000 euro (including VAT 10%).
    At the end of the fourth year of the lease agreement it is possible to buy the apartment paying 1,069,091 euro recovering 130,909 euro (equal to the 75 % of the paid rents excluding VAT).
    In case of no purchase it will be returned 4,364 euro, equal to 10% of the annual lease rent (VAT excluded).
    Please note it is also possible to purchase at any time within the end of the fourth year.


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    #5
    Sarn
    Registered Users Posts: 3,080 ✭✭✭Sarn


    I can't see any benefit to a private seller entering into such an arrangement without a very inflated 'rent'.
    pasquale83 wrote: »
    Well, this is an option of the rent to buy scheme

    http://www.city-life.it/en/rent-to-buy

    That is an Italian website so I'm not sure how applicable it is here.


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    #6
    Philyg30
    Registered Users Posts: 7 ✭Philyg30


    It's ridiculous they need to sort something out for the middle class who are upto there eyes in rent and can't afford to save for a mortgage deposit


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    #7
    Lux23
    Registered Users Posts: 7,134 ✭✭✭Lux23


    There should certainly be a system whereby banks can take rent into account. Our rent is relatively low, but it would still take two to three years to save the deposit by which time house prices may have increased again.


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    #8
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    Lux23 wrote: »
    There should certainly be a system whereby banks can take rent into account. Our rent is relatively low, but it would still take two to three years to save the deposit by which time house prices may have increased again.

    They do, for mortgage affordability tests but rent to buy won't be back in the current market.


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    #9
    ajarms86
    Registered Users Posts: 44 ✭ajarms86


    Philyg30 wrote: »
    Hi all, just wondering if there is an option to buy a home privately through a rent to buy scheme? I'm currently not in a position to save a large deposit as I'm paying high rents .I was wondering if a landlord or home owner wanted to sell a house to
    Me at an agreed rate per month and an agreed deposit would it be applicable ?

    Hey Phily,

    sorry if I'm opening a long dead thread but just wanted to check if you where successful in your bid for a rent to buy style purchase agreement?

    I have heard of it being done successfully but that was back in 2009 so Im just looking for slightly more recent examples?

    Thanks,
    AJ


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