Rent With Option To Buy, A Formula To Acquire A Home Without Savings

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Job insecurity and the lack of savings to meet the initial disbursement not financed by the bank are aspects that make it difficult to access home ownership. In this context, rent-to-own becomes a model for acquiring a home. This formula, “although still residual, continues to gain supporters in our country”, affirms Jesús Duque, vice president of the Alfa Inmobiliaria network.

This model, in practice, consists of signing a rental contract that guarantees that, after an agreed term, the tenant has the right to acquire the home at a price previously agreed by the parties, from which the monthly payments paid so far will be deducted. for rent, totally or partially.

This modality also allows future owners to get to know the home and the area in depth and to know if it is fully adapted to their needs before formalizing the purchase. If, finally, the tenant cannot acquire the house, his commitment will be limited to interrupting the rental contract under the usual legal conditions .

According to the internal data with which Alfa Inmobiliaria operates, the rate of effort to rent a home in Spain currently exceeds 90% of the average salary of young people, a figure similar to what the acquisition of property would entail . However, “the difficulty of saving that 20% or 30% necessary, with the level of salaries in our country and job insecurity is unthinkable,” they point out.

Renting with option to buy also offers advantages for the landlord, since it receives income and profitability during the months in which it is rented, and “it can be an interesting option for owners who find it difficult to sell their property because it is located in areas in which sales are still very slow, “says Duque.

Specify in the contract
Renting with purchase option allows the parties to freely agree on the conditions of the agreement, although it is essential to establish a purchase option premium, which consists of a deposit that the tenant pays on account and that he loses if, finally, the acquisition does not come to term.

Another aspect that the experts recommend when opting for this option is to detail in the contract the time that the tenant can remain leased in the house, the period of time in which the tenant can exercise their right to purchase, the monthly amount of rental of the home or, who is responsible for the payment of community expenses or possible reforms that may be necessary to carry out, among others.

In addition, it is necessary to specify the will of the owner to sell the home , the final price of the same, the percentage to be deducted (partially or totally) from the rental fees in the sale price and the initial premium or guarantee that you have to provide the tenant and that the tenant will lose in the event that he does not exercise his right to purchase.

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