Rent to buy?

dugout16

http://www.castlelake.ie/rent_tobuy.html


This is interesting, seems quite good really.....

DublinDilbert

It looks interesting.... so if i have this correct you don't actually take out a mortgage till year 3... As your rent is knocked off the purchased price your getting the first 3 years of the 'purchase' interest free....

I wonder how this would work legally... i heard developers have been lobbying government to change the law so they can rent out units, then sell them on as a new unit.

patrickolee

Sounds like a great idea. I hope it catches on. It would give people a chance to evaluate the houses before they're tied in through purchase. Hopefully would lead to better build quality in the long run.

smcelhinney

The only caveat, as Dilbert has rightly pointed out, is surrounding legislation. You may have the scenario of the tenant moving out after 1, 2 or 3 years, and the developer not being able to sell the property on as a "new" property.

Also, would the rent to buy scheme be available to other prospective buyers after the 1st tenant has vacated?

In theory though, this is a fantastic idea.

Gurgle

Sounds good, but I would want to get a lawyer, an accountant and a financial advisor to go through the small print carefully before I signed up to anything.
€279 sounds ok for a 3-bed, even in a big development 10-15 miles outside Cork.

dugout16

Its very interesting, will be keeping an eye on that website.....

Hopefully other developers might follow....

DublinDilbert

dugout16 wrote: »

Its very interesting, will be keeping an eye on that website.....

Hopefully other developers might follow....

I'd say they might even be trying to tempt the odd investor back out of the wood work... if he can rent the place for the rent the builder is charging, then get a smaller mortgage 3 years down the road....

smiler26

Oh my God, this could be the answer to all my prayers. Has anyone inquired any further? And if so, have you found out anything about it? ANy catches?

My lease is up at the end of May, and I'm not in a position yet (no deposit, sh1t credit history) to buy somewhere, but I will be within the next 2 years. Not very keen to move back to the folks house in order to save up a deposit. VERY EXCITED after seeing this thread

gamer

dublin city council do a 50/50 rent deal,pay 50percent mortgage first 2,3 years if you are single ,on a lower income ie 30k approx ,ie the give you mortgage on an apartment /house after3 years switch over 2 100percent mortgage if you can afford it,and you are not limited to a particular place or area or developer ,look for info on the council website,housing section.I presume you are in permanent employment at the moment,maybe other councils have similar schemes avaidable.

beeno67

279k sounds very expensive for a terraced house <1,000 sq ft but I don't know the area so maybe it is good. Also they say price is fixed but clearly it is not. If you buy after 1 year they are charging 269k and if you buy after 2 years the price increases to 274k and after 3 years it is 279k.

dugout16

One of the advantages to this area will be the opening of the rail line in 2009, will make it an easy commute to Cork

Supercell

I think its a great idea.
I'm sick to death of renting but afraid of buying right now.
Must admit if I rented a gaff for a year or so and liked it I'd be mightly tempted to say feck the market and just buy it using my "rent" money as deposit.

dugout16

Seems that 12 people have signed up this week according to an article in todays Examiner.....
Other developers may take note

DublinDilbert

dugout16 wrote: »

Seems that 12 people have signed up this week according to an article in todays Examiner.....
Other developers may take note

Not really people racing to his door either, when you think of people camping over night for houses a few years back...

Supercell wrote: »

I think its a great idea.
I'm sick to death of renting but afraid of buying right now.
Must admit if I rented a gaff for a year or so and liked it I'd be mightly tempted to say feck the market and just buy it using my "rent" money as deposit.

I don't think buying is an option here, its compulsory once you sign up... i assume you have to sign contracts to say you will buy after 3 years of renting....

dugout16

No buying is not compulsory, you can walk away at any stage. The developer has got money off you in the form of the rent. They can then rent this house out again or sell straight. The developer loses nothing really in this case.

DublinDilbert

dugout16 wrote: »

No buying is not compulsory, you can walk away at any stage. The developer has got money off you in the form of the rent. They can then rent this house out again or sell straight. The developer loses nothing really in this case.

Are you serious? god i thought they would of had that all sown up with contracts.... i guess you get to try the house before you buy it

dugout16

Ya i thought the same until i read more about it. Seems its been used in the UK with a few years

The following is also interesting

www.rent2own.ie

Guess after living in the house for a couple years you know if the area and the house is really for you and can then committ to a mortgage.

the_syco

DublinDilbert wrote: »

Not really people racing to his door either, when you think of people camping over night for houses a few years back...

Or a few months back, for an estate west of Maynooth.

=-=

Funny thought: rent for three years, don't buy it, and then buy it "as new" at "current market rates"... may get it at an extra €20K less?

The_Conductor

It will be very interesting to see whether the government rolls-over and allows the developers to sell their now 3 year old houses as new properties. Obviously they will be of no interest to non-FTBs if the purchase means a larger stamp duty hit.

S./

DEEMAR

Sounds interesting. Does anyone know where i could download a rental agreement?

petecasey

I wonder if it would be possible for a private investor to offer this as an option on their 2nd property.
With the way the market is at the moment at least it would generate some interest from first time buyers.

DublinDilbert

DEEMAR wrote: »

Sounds interesting. Does anyone know where i could download a rental agreement?

would be interesting to see that... from what other posters said your under no obligation to buy after 3 years renting (which i find hard to believe), but if its true could the opposite also be true that they are under no obligation to sell to you? (or sell to you at that price) for example if the market rises in value?