Rent to Buy Scheme

J

jojo31

Guest
Has anybody bough r in the process of buying a house through the rent to buy scheme in Dublin. We have just started to look into this and would like some feed back. Thanks
 
If you can come up with any sort of deposit- much better value to negoatiate reduced purchase price & buy now. AIB have a rate of 2.49% (before mortgage interest relief) for 1st time buyers- in EVERY case the mortgage repayment would be less than the rent quoted.

This scheme is designed as a "get out of jail" for developers who cant sell!!!!!!!
 
I have looked at the scheme in some detail as an adviser. If you want to purchase a house in such a scheme you could look at offering the developer a reduced price of circa the amount of deposit you will build up over say 3 years.
Example:

Purchase Price €250,000
Rent €900.00 p.m.
Allowance towards deposit €900.00 p.m.
Term 3 years

Deposit Built up = 36 * €900.00 = €32,400

Balance Due = €217,000 in 3 years

Offer NOW = €200,000 (if you can get a mortgage!)




You can do this only if you have at lease 8% of the purchase price plus fees for solicitors, surveyors etc accumulated. If you have, then look at offering a reduced purchase price now and take it from there. If not, join the scheme on your terms.

Yes it is a means for developers to get out of a difficult situation, it is also a means for first time buyers to snap up a bargain (make sure the price is reduced in line with the local market firstly) and get on the property ladder at a better time and not waste money on rent. Have your solicitor read the contract first.
 
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