How does a real estate hire-purchase work?
It's a bit like a LOA for a new car.Hire purchase for an apartment or house is a solution to becoming an owner.Real estate leasing to compensate for the lack of real estate contribution.accession.
Real estate rental-sale: the solution to buy without contribution
Interest rates are admittedly reaching historically low levels, but banks do not grant loans easily.If they sometimes mention the financial instability of applicants, it is often the lack of personal funds (contribution real estate) which blocks the decision.Borrowing without down payment is possible, but finding a bank that will accept you is sometimes difficult, and the margin for negotiating the terms of the loan promises to be narrow.
Banks often ask for a real estate contribution equivalent to 10% or even 20% of the purchase price.However, in the case of a first-time homeowner, savings are rarely enough to reach this level.are not the only ones to make this operation complicated.The seller of a good generally requires a security deposit (a receiver) of 5% to 10% at the time of the signature of the compromise.A second reason which could deprive you of all hope of '' buy the targeted home.However, the hire-purchase formula, also called rental-purchase, could be adapted to your situation ...
Rental-purchase to become a long-term owner
While the full price of a property must be paid at the time of the deed of sale, hire-purchase consists of occupying the accommodation by paying rent (or royalty) to the seller, and by saving a sum each month for a given period.The contract must also mention the date of entry as well as the duration of the rental period (or use).The seller receives the rent, and the savings are blocked until the exercise of the purchase option, at which time this savings will be deducted from the sale price.This will correspond to your real estate contribution.This solution is therefore very interesting to be able to buy a property without an initial contribution, but still presents a shadow on the table.The royalty paid to the seller is completely lost, as if you remained a tenant during this period of enjoyment.
Posted Date: 2021-02-16