Rent with option to buy
Cabopino Realty provide buyers-tenants and sellers-landlords additional options during questionable times for the market or the individual parties. The general agreement allows for a potential buyer, who may not have the capital to buy the house out-right or the credit to get a loan, to pay a deposit up-front, traditional rent and a rent premium and live in desired home immediately.
OPTION 1 – WITH DOWNPAYMENT
The deposit on a rent-to-own is usually between 2.5 and 20 percent of the property price. The traditional rent goes straight to the seller-landlord, as in any other rental agreement. The rent premium acts as a further deposit toward the purchase of the house on the first year 100% on the second year 90% and the 3th year 80%. Most rent-to-own contracts are fairly short term – one to three years is the usual length. And the price of the property is usually established at the contract signing. With this option we will advise you to take a lawyer as there is no rental contract but a private purchase contract with a max time agreed between the seller and the buyer. If the property is not purchased on the agreed time the potential buyer will lose the quotes paid and has to leave the property.
A good example of rent to own is: Selling price of the property:
200.000€ Rental price of the property: (15% = 30.000€ /36) 833€ per month Maximum period to purchase: 3 years Purchase first year: 20.000€ deductable Purchase second year: 39.000€ deductable Purchase third year: 57.000€ deductable The prices advertised on our website are always the current asking price for the purchase of the property and the normal rental price for long term rental. To calculate the specific conditions for a rent to buy please go to our rent to buy calculator.
For more questions please do not hesitate to contact us.
Sandra Goovaerts
Cabopino Realty SL
info@cabopinorealty.com