Rent to Buy Schemes

kildareash

Hi all,
I'm sure it had been discussed to death here, but I was just wondering what people's views were on Buy2Rent schemes.

3-bed end of terrace costs €205k, Buy2Rent is €1000 a month, 50% goes towards deposit, if you buy within two years.
If same house with same spec is sold for less in two years time, you buy at lower price, if prices go up you pay today's price.
I very much doubt that we would buy the house for anything less in two years time, as I'd say they would make it impossible to prove houses are the same spec...
We are actively saving for deposit, but don't quiet have 8% yet and if prices drop further in the next few months we would try to buy outright.

What do people think of these schemes? It sounds too good to be true to me...I'm waiting on the catch.
We are waiting on the lease and will be getting our solicitor to read over it, but I would be interested in people's thoughts on it.

Thanks
Kildareash

Jesus Wept

It should be 100%, and rent to buy should have been introduced long ago in this backward greedy country.

inforfun

More than likely that i know the answer already but... what happens with your "deposit" if you dont buy within 2 years?

kildareash

You loose it...simple as.

But we fully intend to buy the house within the two years, so we are looking at it as €500 rent and €500 saving...
Myself and himself are both renting rooms seperately at the minute, so it's only costing us a couple €100 extra pm.

I'm just worried that when we get the lease next week, they will be looking for a pound of flesh too!

Nothing could be so simple...could it?!

Wreck

Who runs these schemes? Is it the builders/current owners or is it local councils and corporations?

tbh

5 years ago, you'd be right to be suspicious - now, the developers have to be inventive to shift their stock. To be honest, maybe I'm being naive, but this really does sound like a win-win.

kildareash

Oh yeah, and while the houses still aren't sold, they have money coming in every month to keep the banks off their backs.

I honestly couldn't believe the crowds that were going to view the showhouses, last weekend.
We were the third or fourth couple to put our names down and the show house had only been open half an hour.
We even got a call during the week to make sure we were still interested, as some other woman was putting pressure on them for the house as it was the last end of terrace available!

I suppose we may wait until the solicitor has a look at the lease...fingers crossed it doesn't throw up any nasties!

Thanks all

kildareash

Wreck wrote: »

Who runs these schemes? Is it the builders/current owners or is it local councils and corporations?

The developer AFAIK

m'lady

Hi Op,
My partner and I are in the middle of taking out a similar scheme at the moment. The difference is ( and quite a big difference) is that the 'rent' that we will pay for next 2 years is our full deposit, and I know there are similar schemes countrywide.
Contracts are being drawn up, and our solicitor will check them out before we sign anything. Where in the country are you buying? We are in Virginia, Co. Cavan. If you have any questions, don't hesitate to pm me.

inforfun

kildareash wrote: »

You loose it...simple as.

But we fully intend to buy the house within the two years, so we are looking at it as €500 rent and €500 saving...
Myself and himself are both renting rooms seperately at the minute, so it's only costing us a couple €100 extra pm.

I'm just worried that when we get the lease next week, they will be looking for a pound of flesh too!

Nothing could be so simple...could it?!

Nothing else than i expected tbh.
But i had a slight hope of cheap renting

it does look to be too good to be true at the other hand there is so much empty new builts at the moment, they might try anythign to get rid of them.

mrgaa1

m'lady wrote: »

Hi Op,
My partner and I are in the middle of taking out a similar scheme at the moment. The difference is ( and quite a big difference) is that the 'rent' that we will pay for next 2 years is our full deposit, and I know there are similar schemes countrywide.
Contracts are being drawn up, and our solicitor will check them out before we sign anything. Where in the country are you buying? We are in Virginia, Co. Cavan. If you have any questions, don't hesitate to pm me.

Do you have any other details on this scheme - sounds like a winner. Do you agree purchase price now or is there another valuation done in two years or so? What happens if you can't pay the rent - same as normal rent agreement?

m'lady

If the price on house was to go up in 2 years time you buy at todays price, and if it goes down, in theory you get it at reduced price, but as the op said it would be hard to prove.