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Rent to Buy Scheme

  • 05-12-2014 4:58pm
    #1
    teggers5
    Registered Users, Registered Users 2 Posts: 445 ✭✭


    Has anybody got any experience of how this works?
    Is it as simple in practice as it sounds or is a case of too good to be true?


Comments

  • #2
    Lucy B
    Registered Users, Registered Users 2 Posts: 97 ✭✭Lucy B


    teggers5 wrote: »
    Has anybody got any experience of how this works?
    Is it as simple in practice as it sounds or is a case of too good to be true?

    Don't think they are really available anymore.


  • #3
    Victor
    Registered Users, Registered Users 2 Posts: 78,580 ✭✭✭✭Victor


    teggers5 wrote: »
    too good to be true?
    Generally this. There may be stamp duty / VAT / LPT issues.


  • #4
    the_syco
    Registered Users, Registered Users 2 Posts: 37,316 ✭✭✭✭the_syco


    teggers5 wrote: »
    Has anybody got any experience of how this works?
    Is it as simple in practice as it sounds or is a case of too good to be true?
    You buy for €450k now, you rent for X number of months to make a "deposit" only to find out no bank accepts this deposit (search, and you may find the thread from last year some time), and also the bank may think the house is only worth €300k, so you'll either have to come up with the extra yourself (and in fairness, if you could, you wouldn't be doing getting a house this way), or walk away.

    There's a reason why such schemes started when the price of houses went freefall; they only benefit the sellers.


  • #5
    witchgirl26
    Registered Users, Registered Users 2 Posts: 2,253 ✭✭✭witchgirl26


    Personally, even if they were around, I'd avoid like the plague. You agree a price at the outset of the whole contract. It could work out great for you but you could also end up paying well over the odds.

    Generally there is a break-clause that after the time of renting, you can choose to purchase for the agreed price. If you don't purchase, then all that money you've paid as rent is just gone & unless you've been saving too, there's no deposit. Also, as someone else has said, a number of the banks don't recognise the rent paid as a deposit and won't take this into account when you're looking for the mortgage.


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