Rent-to-buy schemes

mdix

Hi guys, any heard of these rent to buy schemes? Im considering it the last year. and think im going to go with it, but i really want to talk to someone who has gone through the process? can any one help?

the_syco

You see a house for €200,000 you rent2buy it, and after 3 years, when you goto buy it, they give you €10,000 deposit, but by then the bank only values the house at €100,000 which means you're €90,000 short.

You only see the rent2buy schemes after the crash, as they only benefit the developer/builder/estate agent.

Oh, and if you have a look through these forums, you'll find that the banks don't always accept the deposit you get with the scheme as an actual deposit for the mortgage.

The_Conductor

mdix wrote: »

Hi guys, any heard of these rent to buy schemes? Im considering it the last year. and think im going to go with it, but i really want to talk to someone who has gone through the process? can any one help?

Mdix- it is *not* permitted to post the same question across multiple forums. If you think you've posted in the wrong forum- you ask the moderator of that forum to move your post- you don't go and post the same thing somewhere else.

Please read the forum rules if you intend to continue post here.

Regards,

SMcCarrick

Duckjob

Rent-to-buy schemes are a marketing trick devised to make financially illiterate people pay over the odds for a property in a falling market.

Generally-

a) The sale price is inflated compared to similar in the area.
b) The rental price (for 3 yrs or whatever) is inflated compared to similar in the area.

The psychology is that although you technically have free will to buy or not buy the property at the end of the rental term, in practical terms you have emotionally invested in paying several yrs of above-market rent, so you either cut your losses and walk away, or you concede to buying at the sale price which now looks even more inflated.

Why would you bother with this ? Just find a nice rental and you won't close off your options - you can reevaluate in 6mths, 1 yr, 2 yrs, 3 yrs, etc based on what the market is doing.

_Kaiser_

Looked into this at one stage and there were simple questions that weren't answered - among others:

- What happens if the price has dropped at the end of the 1.5/2 years?
- Related to above, what happens if the bank decides it's not worth what you agreed and refuses the mortgage?
- Who's responsible for the maintenance of the place while you're renting especially if something big goes wrong?

Couldn't get straight answers to these and other questions so didn't bother pursuing it any further

Paxton Boy

Hi, Im thinking of taking up the rent to buy scheme. I took early retirement last year and was wondering if you have to be currently employed to avail of the scheme. Any other info will be greatly accepted.