Alternative investment options to be a home homeowner despite the credit squeeze

Alternative investment options to be a home homeowner despite the credit squeeze

Rent to buy investments put the purchase of a home within the easy reach of customers

The credit squeeze and the difficult situation of the real estate market have made alternative forms of investment necessary. The most alluring option for those who want to buy a house but do not have the necessary capital to do it or can hardly obtain a loan is represented by Rent to Buy investments: the property can be used immediately and paid rents can be considered as an advance payment of a part of the final price. An extra charge is added to the rent to compensate the price due for the purchase of the apartment. The sum that goes to the fund depends on the lease.

Nonetheless, the rent to buy option can hide some dangers that need to be tackled with the professional help of a notary public. The renter must be granted the possibility to finally buy the apartment or give up the purchase, which means that the customer must be given the possibility to change his/her mind when the lease expires. It is very important to rely on a skilled notary public who can follow the transaction from the beginning and check the existence of possible mortgage contracts that may dip into the accrued fund.

Rent to buy represents an advantageous option, as paid rents are not lost and all of the expenses implied by a loan are postponed. Furthermore, the contract can be granted to a third party at the expiry of the lease term. The shorter the time needed to decide to purchase the property, the higher the amount destined to the fund will be.

This form of investment offers several advantages to property owners, too. They can avoid keeping real estate properties unsold and save on maintenance costs.

Have you ever heard about Buy to Rent? Do you think it is a convenient investment option? Write to us! Let us know what you think about it!

Read also:

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·         Home buyers and tenants look for properties with their own washers and dryers

·         The wealth report reveals top investment destinations for 2012

·         Lifts help home prices stay high

·         Buying a home in a European capital affected by the crisis 

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