Easi-steps rent to buy scheme

mdix

Hi,

I'm looking into a rent to buy scheme with easy steps, its a scheme where you pay €5000 deposit and pay monthly instalments to the builder for 18 months by the time the 18 months are up you now have your deposit to get your mortgage, where as I'm renting now and will never be able to save the 10% required by the bank, anyone any experiences with this scheme, or advice?

Snakeblood

mdix wrote: »

HI,

IM LOOKING INTO A RENT TO BUY SCHEME WITH EASY STEPS, ITS A SCHEME WHERE YOU PAY €5000 DEPOSIT AND PAY MONTHLY INSTALLMENTS TO THE BUILDER FOR 18 MONTHS BY THE TIME THE 18 MONTHS ARE UP YOU NOW HAVE YOUR DEPOSIT TO GET YOUR MORTGAGE, WHERE AS IM RENTING NOW AND WILL NEVER BE ABLE TO SAVE THE 10% REQUIRED BY THE BANK,
ANYONE ANY EXPERIENCES WITH THIS SCHEME, OR ADVICE?

Now is a terrible time to rent to buy, it'll be cheaper later when prices collapse further. There's nowhere for prices to go but down.

Is the place actually built?

Have you checked to see if the builder is solvent?

If you can't save any money renting, can you afford to pay a mortgage if the interest rates go up?

Caps lock is on the left of the keyboard :-)

Sarn

I'd be careful with this. How well does the 'rent' compare to houses in the same area? How much of a premium do you have to pay for the benefit of living in the house? How secure is the builder? If he goes bust, bye bye deposit. Are you signed up for an agreed price for the house at the start? If so the property could be significantly cheaper in 18 months time.

Many would argue that if you can't save a 10% deposit then you shouldn't consider buying a house. Have a search through this forum and you'll see that similar schemes have been discussed.


(Caps lock is <

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mdix

OK i have been talking to estate agents and they think the housing prices in Dublin are at rock bottom, builder is solvent, and my monthly payments will be 900 a month for 18 months, where as im renting now and paying 1050,so yes i can afford the repayments.
im looking to talk to someone who has done this before or knows of somebody who has done it. thanks

dory

mdix wrote: »

OK i have been talking to estate agents and they think the housing prices in Dublin are at rock bottom,

FYI, they've been saying that since 2009.

There's very little difference between your rent now and the mortgage. How much will the mortgage be if/when interest rates are at 8%?

mdix

why are people worried if im able to pay for this, im looking for people who can talk to me about this certain scheme, not nit pick at everything i say.

Tigger

they were trying to help you
i'm sure they'll stop now

Mr. Loverman

mdix wrote: »

why are people worried if im able to pay for this, im looking for people who can talk to me about this certain scheme, not nit pick at everything i say.

Let's cut to the chase.

You work for easy steps, right?

...

House prices still have a long way to go before they hit the bottom. There is no evidence to suggest otherwise, apart from estate agents who obviously are going to say any old rubbish to get people to buy.

confuzed

mdix wrote: »

why are people worried if im able to pay for this, im looking for people who can talk to me about this certain scheme, not nit pick at everything i say.

Your EA is your best friend. They have helped thousands and will definitely help you as well.

1) Are they fixing purchase price as per today's market?.
2) Is it a binding contract or you have a choice to quit after 18 months.?

Do your sums like you have done above. Rent it with an option to quit. After 18 months you can revisit market and your apartment price and make decision.

Snakeblood

mdix wrote: »

OK i have been talking to estate agents and they think the housing prices in Dublin are at rock bottom, builder is solvent, and my monthly payments will be 900 a month for 18 months, where as im renting now and paying 1050,so yes i can afford the repayments.
im looking to talk to someone who has done this before or knows of somebody who has done it. thanks

Estate agents will get money if you buy, if you don't buy they won't.

Duckjob

mdix wrote: »

OK i have been talking to estate agents and they think the housing prices in Dublin are at rock bottom

Wow, well thats that then. Can't get more credible and impartial advice on property prices than from an estate agent... :pac:

Balmed Out

what happens if builder goes under?

Victor

There are allegations that some other promoters (not linked to Easi-steps) have run away with the money.

Can you imagine paying €5,000, renting for three months and then being evicted?

Don't part with one cent until you talk to your own, independent (not linked to any other party) solicitor.

Stu

David Mc Williams reckons that average house prices are currently 16% overpriced and he also reckons that we still have a fair way to go before house prices hit rock bottom.

There is absolutely no reason why house prices won't drop by another 30% over the next 3 or 4 years in my opinion. Mass emigration, oversupply of vacant properties, re-possessions, banks not lending etc and a very slow economic recovery over the next 5 to 10 years. House prices will keep on dropping like a stone for the foreseeable future.

My parents who are Landlords purchased a 2 bed house in Dublins Northside recently to rent out and payed €166,000 for it. I valued it at €151,000 using a potential rental yield calculation but they had bought it without telling me and will now be stuck with this "investment" for 10 years if they want to see a 5% to 6% return on it in my opinion because of depreciation and falling rents.

They will make a loss if they try to sell the house in the next 4 or 5 years but they wanted to get some of their money out of the bank and in bricks and mortar having recently heard that the banks need another 15 billion bail out money to keep going. This country is in a depression (not a recession) and only an extreme optimist would buy a house at the moment at current prices.

Duckjob

I don't get peoples interest in these Rent to Buy schemes.

In a market where prices are dropping like a stone, the last thing I would want to do is commit myself to buying in a few years time at todays price. I know that nobody is forced to buy, but as the rent they will pay in the 3 yrs invariable going to be above open market rates it means they spend the 3 yrs getting financially invested in making a purchase that is also going to be above market rates.

Makes a lot more sense to just rent with no strings attached for the 3 yrs. If you decide you want to buy that house or similar in 3 yrs you're not going to have to join a queue.

Also, anyone who approaches an EA for "advice" on where house prices are at needs their head examined. That's like asking the ice-cream man on the beach on a sunny day if it's a good day to buy an ice-cream.

mdix

ok im not an estate agent and do not work for easi steps!

i got advice from an estate agent and a financial advisor and they both said that the prices in dublin are at rock bottom, but are still to drop 5/10% else where in . the estate agent is a friend who would not bull **** me.

builder is solvent for now that is but who knows about these people, if he goes under then i have a hard job chasing 5k back,

and yes it is a binding contract but i can still pull out after 18months.

any of you guys know any1 who has done this scheme?

Victor

Well, Caldwell Banker are saying this is the time to sell.

If only they said that out loud for the last 5 years.

Duckjob

Victor wrote: »

Well, Caldwell Banker are saying this is the time to sell.

What, as in, before the REAL crap hits the fan?

Mr. Loverman

mdix wrote: »

i got advice from an estate agent and a financial advisor and they both said that the prices in dublin are at rock bottom, but are still to drop 5/10% else where in . the estate agent is a friend who would not bull **** me.

I believe you when you say he is not bull****ting you.

It's just unfortunate he is wrong.

Stu

I wouldn't listen to anybody who has a vested interest in the housing market. All you have to do is have a look at what happened to the Japanese housing market in the late 80's to early 90's. Bare in mind the Japan currently has the 3rd strongest economy in the world and house prices still haven't recovered from the housing crash and only began stabilising 10 years ago (late 90's).

You can buy a 2 bed apartment just outside of Berlin, Germany for €40,000 to €50,000 euros with a 10% rental yield and this in a country that has the strongest GDP in europe at the moment.

Ireland is going through the same depression that Japan went through and like Japan it was easy credit that caused house prices to spiral out of control. House prices are massively over valued in Ireland at the moment and people looking to sell are still under the illusion that their house is worth only slightly less than the price they paid for it 4 or 5 years ago. Wrong, it wasn't even worth half what they originally paid for it to begin with.

As an invester, Ireland is the worst place to buy property at the moment. Germany, France and the U.S.A offer much better value and i will continue to rent for the foreseeable future. Renting is not dead money anymore, infact it is a smart move to rent and bide your time until house prices drop by at least another 20% to 30% and they will.

the_syco

mdix wrote: »

i got advice from an estate agent and a financial advisor and they both said that the prices in dublin are at rock bottom, but are still to drop 5/10% else where in . the estate agent is a friend who would not bull **** me.

The EA has a job. If he doesn't sell a house, he may loose his job. There is a conflict of interest there, so I wouldn't take everything they say as fact, as no doubt the EA is under stress to get people to sign up.

Also, never trust an estate agents or financial advisor who gains from something you intend on buying.

mdix wrote: »

any of you guys know any1 who has done this scheme?

As most of the schemes are new, not a lot of people have yet been in one long enough to have "done" this scheme yet.

mdix

the_syco wrote: »

The EA has a job. If he doesn't sell a house, he may loose his job. There is a conflict of interest there, so I wouldn't take everything they say as fact, as no doubt the EA is under stress to get people to sign up.

Also, never trust an estate agents or financial advisor who gains from something you intend on buying.


As most of the schemes are new, not a lot of people have yet been in one long enough to have "done" this scheme yet.

THE EA AND THE FINANCIAL ADVISOR THAT I CONSULTED WITH HAVE NO INTRESTES IN THIS AS THESE ARE PEOPLE I WENT TO AND ASKED THEM FOR THERE ADVICE THEY HAVE NOTHING TO DO WITH THIS SCHEME.

Damie

Stop shouting, you looked for advice, got some, didn't like it.....sounds like a great deal, go for it!

Stu

Estate agents were talking (waffling) on the Late Late Show 2 years ago about how house prices had bottomed out and prices had begun to stabilise and how apartments in new developments in the city centre were a bargain at €250,000 to €300,000. I couldn't believe what i was listening to, these cretins shouldn't have gotten any air time on the late late show because they are only saying whatever they have to say to sell property. They have no interest in telling the truth unless they gain financially from it.

David Mc Williams has been spot on with virtually everything hes been saying for the past 5 years and hes one of a small minority of economists who knows what theyre talking about and says it as it is, backed up with research and facts. Anyone coming out of the woodwork nowadays to offer advice can go and jump off a tall building as far as i'm concerned.

the_syco

Damie wrote: »

Stop shouting, you looked for advice, got some, didn't like it.....sounds like a great deal, go for it!

Agreed. mdix: come back when the scheme is over, so we can all have a jolly good laugh. Otherwise, either give all the facts, or just buy the house.

makowskr

mdix wrote: »

OK i have been talking to estate agents and they think the housing prices in Dublin are at rock bottom, builder is solvent, and my monthly payments will be 900 a month for 18 months, where as im renting now and paying 1050,so yes i can afford the repayments.
im looking to talk to someone who has done this before or knows of somebody who has done it. thanks

hi we are just past 11 months rent and we try to buy:)
so i see 2 big problem
number 1 problem to get mortgage from bank , so lets check u ability from bank for u exact amount mortgages(now its very strict criteria) ,
number 2 after " rents month " housing price gonna be drop down , but don't worry about this , because house must be sold , check if u agent/contract be able to negotiable this price-necessary in this business , and valuer story:
after for example 1 year some valuer company could be done "wrong" valuation means management asking for 125.000e for brand new house but valuer made 100.000e for like a second hand house , then bank won't lend more than 100.000e so if u pay 10.000e deposit u need 15.000e from your pocket , if u rent more than 1 year could be bigger deference between asking and valuer price.
its good to check valuer job , make sure they made value near asking price,
otherwise bank won't give u money
my opinion don't go for this business with more than 18 months because u house may be too old for buy for some valuer/bank , then u need much more saving to buy:)
is nearly like cassino but could be wort try instead pay rent someone for a years:)