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Rent to Buy

  • 09-02-2011 12:23pm
    #1
    LisaPol
    Registered Users, Registered Users 2 Posts: 37 ✭


    Just wondering if anyone has any advice regarding the rent to buy schemes. This is our situation; currently renting a house for 1050 per month. Have 15,000 saved but at the minute finding it very difficult to save anything more than 100 per month which isnt going to get us our own place any time soon! Living in South Dub so we will need a deposit of double what we have to get a house around here. Willing to move a bit towards Wicklow if it comes to it where houses are that bit cheaper. We have a one year old daughter and I am a self employed registered childminder so moving back to my mams in order to save isnt an option as I work from home. Also only self employed since July so wouldnt be approved for a mortgage for another year and a bit. So we have been looking at rent to buy which the websites sell very well. Whats the catch. Is it worth our while thinking about? Is all the rent that you pay put towards the deposit. Clueless really so any opinions or advice appreciated :)


Comments

  • #2
    quozl
    Registered Users, Registered Users 2 Posts: 3,308 ✭✭✭quozl


    The problem with the first rent to buy schemes in Ireland were two-fold:

    1 - the rents were significantly above market rate - many RTB properties were in blocks with normal rental properties which showed the scale of the differences.

    2 - whether the final purchase price would also be significantly above market rate

    I don't know what recent ones are like. I am highly dubious about them though.


  • #3
    Idbatterim
    Registered Users, Registered Users 2 Posts: 18,126 ✭✭✭✭Idbatterim


    Op, could you renegotiate rent or move somewhere cheaper, so that you could save faster? make sure whatever you are saving is earning decent interest. Then again with prices dropping, your deposit is becoming a bigger percentage of what is required every day!


  • #4
    senordingdong
    Registered Users, Registered Users 2 Posts: 10,673 ✭✭✭✭senordingdong


    +1.

    All the info I can find suggests that the RTB rent rate is very close to the current rent rates. Could it still be a rip off?

    Also, do all RTB schemes inevitably involve the bank? It's the unpredictability of mortgage interest rates that are making this look more appealing.

    BTW...this is the one I had in mind... http://www.daft.ie/searchrental.daft?id=1221534


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