# Developers finding new ways to market their developments: Rent to Buy



## Michaeld (16 Feb 2008)

Firstly I hope that this is in the right section.

I was reading a newspaper(cant remember which one) and it had an article about one developer (Roche Group) who was giving new incentives to sell his developments. He rents the house to the customer for twelve months to see if they like it and if they do a percentage of the rent paid is subtracted from the selling price.

I wish to incorporate a piece in my dissertation about a number of different developers giving similar incentives. If anyone has any experience or knowledge of developers incentives I would be very grateful if you could post a link or short pice here.
Thanks


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## rmelly (17 Feb 2008)

*Re: Developers finding new ways to market their developments*

why not get the sunday papers (or appropriate weekday ones) and check the property supplements - they're sure to have details.


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## Trustmeh (17 Feb 2008)

*Re: Developers finding new ways to market their developments*

Its called rent with an option to buy.  This method has been around a very long time in the US and is very effective.  My Father sold a house this way many years ago.
This is great news in my opinion and shows there is plenty of wiggle room in this downturn economy for people to be creative.

OP - can you most a linky if you find any?


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## Michaeld (17 Feb 2008)

*Re: Developers finding new ways to market their developments*

@rmelly - i have been doing this, that is where i saw the rent to buy, I was hoping that people who have read similar stories be it givng a free car with the house ( which I have also heard) or doing other things that they post them up here to make it a little easier for me.

@yankinlk - its a Limerick based group called Roche Group - here is the link -
[broken link removed]

Any other info anyone?


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## MrMan (18 Feb 2008)

*Re: Developers finding new ways to market their developments*

If you look at foreign properties, in Dubai at the moment they are giving away BMW's and Bentleys with apartments and when you buy you are also entered into a draw for a private jet!


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## shanegl (18 Feb 2008)

*Re: Developers finding new ways to market their developments*

So you're effectively rolling the cost of the BMW into your mortgage and paying for it over 20 years +. I'd rather just have the house reduced.


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## Bronte (18 Feb 2008)

*Re: Developers finding new ways to market their developments*

Which leads to the question, if you receive a free car/kitchen/holiday/boat/mooring when you purchase a house is this subject to gift tax?


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## Mel (18 Feb 2008)

*Re: Developers finding new ways to market their developments*

There was an article in the Examiner on Saturday about a developer who will take your old house as a trade-in against the new one. 

Link here: [broken link removed]


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## MrMan (18 Feb 2008)

*Re: Developers finding new ways to market their developments*



> So you're effectively rolling the cost of the BMW into your mortgage and paying for it over 20 years +. I'd rather just have the house reduced.



It think thats what most people do in this development, but the price of these cars doesn't quite reflect their market price here so savings aren't as great as they sound.


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## Michaeld (18 Feb 2008)

*Re: Developers finding new ways to market their developments*

Thanks Mel for the link thats exactly what im looking for, anyone got anything else?


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## joejoe (19 Feb 2008)

*Re: Developers finding new ways to market their developments*

Try & buy, thats been going on in NZ for years, it's not such a bad idea.

Joejoe


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## Michaeld (21 Feb 2008)

*Re: Developers finding new ways to market their developments*

Its fantastic, it shows Irish developers are using innovative ideas to sell their products, any more examples people?


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## quinno (21 Feb 2008)

*Re: Developers finding new ways to market their developments*

The deveoper of a scheme in Milltown (I think - heard on radio advert) is offering 4% interest on deposit. Have also heard of vouchers of up to €22k for a development in Swords.


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## sidzer (21 Feb 2008)

*Re: Developers finding new ways to market their developments*

Michael Lavelle Auctioneer in Dundalk has been offering 'a deal' buy a house and get your mortgage paid for a year on a particular development that has not been selling (College Heights).

Mary Wilson interviewed his daughter on RTE 1 drive time about this offer and she took the gloss off with her sweet sharp tongue

She basically asked Ms. L why don't u simply reduce the price by the amount that u r offering in the deal and make it more attractive to the buyer! Ms. L was unable to keep pace with her questions and this opportunity to impress with some murketin was dismantled....

When I bought my last house the auctioneer made much of the €1000 voucher for a tv / whites / tiles... I however seen this as a curse as I would be paying this €1000 back over the next 25 years and would have prefered the 1000 off and got a loan in a credit union if I was stuck for a TV....


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## Welfarite (22 Feb 2008)

*Re: Developers finding new ways to market their developments*

I heard of obe developer last year who was offering to pay your mortgage for the first year ... don't know the exact details....


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## Lobby (22 Feb 2008)

*Re: Developers finding new ways to market their developments*

Vouchers/ cash back etc can cause other oproblems too. As a valuer we are obliged to mention any special offers/cash back on a valuation and the bank will take this off the purchase price of the house and only lend against this amount.


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## Michaeld (23 Feb 2008)

*Re: Developers finding new ways to market their developments*



Camry said:


> Alternatively, it shows how gullible some consumers are, or how detached from reality some developers are.


 
Well it makes a change from what they were doing in my locality for the last number of years, which was buy it if you want if you dont theres plenty in the queue behind you to buy it


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## xman (24 Feb 2008)

*Re: Developers finding new ways to market their developments*



Lobby said:


> As a valuer we are obliged to mention any special offers/cash back on a valuation and the bank will take this off the purchase price of the house and only lend against this amount.


 
Absolutely right too. Inflating the mortgage valuation of a house is out and out fraud against the bank.

The loan is secured on the value of the underlying asset, not a load of makey uppey developer concocted 'incentives'.


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## Michaeld (2 Mar 2008)

*Re: Developers finding new ways to market their developments*

Cant see how its not different, obviously Im only speaking about my experience in my area but dvelopers and auctioneers have become quite attentative lately compared to the "not really fussed" attitude of years gone by. Soem of them really thought they were gods going around the place so its nice to see sweat a little bit now.


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## Michaeld (9 Mar 2008)

*Re: Developers finding new ways to market their developments*

Having a wee bit of bother opening the link that was posted on a previous post on thhe thread, any ideas?

[broken link removed]


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## Michaeld (9 Mar 2008)

*Re: Developers finding new ways to market their developments*

Found it, cheers


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## Darealdeal (12 Mar 2008)

MichaelD
This is called a "Tenant Purchase Option". It is legal in Ireland. It has been done, for many years. You require a "willing tenant" & a "willing landlord".
When structured fairly, has benefits for both tenant & landlord. The tenant has a chance to get on to the property ladder & it gives the landlord surity of rent for a longer period of time. Tenants doing this type of purchase also tend to treat the property as their own home. It also means that the tenant generally does not have to raise a tasking purchase deposit if any. It also gives the tenant an opportunity to create a great financial track-recork, for when they do finally have to get a mortgage. Dealing with a/the banks is tough even for some of the most seasoned professionals.
If you are on a modest or low wage, with very little in the way of financial know how, banks, brokers and building societies can seem very bullyish, if that is a real word? 
A tenant purchase option, may seem a viable way forward.

You can Pm, if you wish to discuss further.


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