The Rent with option to buy is growing in recent months. Although its weight continues to be low, the real estate market affirms that it is gaining more followers. There are currently more than 9,800 property listings on idealista that support this formula.
“The job uncertainty caused by the pandemic, the growing legal training of individuals, and the ease of having legal counsel, they are encouraging more and more many people who want to buy a home and do not have 20% of the necessary amount to undertake an operation of this type “, explains the Alfa Inmobiliaria network.
Broadly speaking, this formula consists of signing a rental contract that guarantees that, after a certain period of time, the buyer has right to acquire the home at a previously agreed price, discounting the amount you have paid through monthly rents.
Thus, the rent with the option to buy, in practice, “allows tenants to live in a dwelling under a lease for the period of time that has been stipulated (generally between two and five years). And, once that period has ended. , have the right to acquire ownership of the property for the price previously agreed with the owner, discounting the amount paid up to that moment “, they clarify from the real estate network.
This formula, therefore, allows you to become a homeowner without the need to have previous savings (usually the bank lends 80% of the price of the house in the mortgage, to which an extra must be added to cover the expenses and taxes of the operation) and it is an option to be taken into account by young people, who in many cases do not have a sufficient economic cushion to get a mortgage loan.
“The difficulty to save that 20% -30% necessary, with the level of salaries in our country and job insecurity is unthinkable. For this reason, we encourage young people to seek advice and study this purchase option in depth, ”they explain from Alfa Inmobiliaria.
Advantages for the buyer and the seller
The company lists in a study the advantages offered by rent-to-own for both parties.
For the tenant and future buyer, for example, it highlights that “it has the peace of mind that if the plans do not finally go as expected, your commitment will be limited to interrupt the rental contract under the usual legal conditions. “And also that “allows future owners to get to know the house and the area in depth, and know if it is fully adapted to your needs before formalizing the purchase. ”
In the case of the seller, he emphasizes that 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 they are located in areas – or when they are going through economic situations – in which sales are still very much stopped”.
Tips for preparing the contract
The rent with purchase option allows the parties to freely agree on the conditions of the agreement, although it is it is essential to establish a purchase option premium, “which consists of a deposit that the tenant delivers on account and that the tenant loses if, finally, the acquisition does not reach term”, emphasizes the esutdio.
It is also convenient clearly detail various aspects in the contract, such as the time that the tenant can remain leased in the house, the period in which the tenant can exercise his right to purchase, the monthly rental amount of the house or, who is responsible for paying the expenses of the community or possible reforms that are necessary to carry out, among others.
Another key is specify the owner’s willingness to sell lhousing, the final price of the same, the percentage to be deducted (partially or totally) from the rental installments in the sale price and the initial premium or guarantee that the tenant has to provide and that the tenant will lose in the case of that he does not exercise his right to purchase.
In short, renting with the option to buy is a formula for acquiring a home that provides multiple advantages, although it is more complicated than a regular transaction. Therefore, it is advisable to learn about the process and seek the advice of a real estate professional to successfully conclude the operation.
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