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Rent 2 Buy
Rent 2 Buy is a contractual agreement between a tenant and a property owner, where the tenant can at any time, exercise his / her right to buy the property after residing in it during a certain specified time, normally until a maximum of 5 years. As soon as the tenant decides to buy the property, a percentage of the rent already paid (sometimes plus part of the capital gains tax) will be deducted from the sales price.
Advantages for the tenants
The rent you pay is no longer “dead money” The rent you pay today will help you to be able to buy your home tomorrow.
You can move into your new home without having to make a large down payment.
You will be able to live & enjoy your property whilst saving money to buy it.
If you are new to the area the R2B scheme gives you the time to discover the surroundings and services available as well as getting a “feel” for the property.
You decide when the optimum time is to acquire the property. For example, when the interest rates are low and/or the exchange rate is favourable.
If looking to finance a new home, and in the process of selling your current one. Rather than taking the equity out of your home with an expensive “Bridge Loan” The R2B concept will give you up to 5 years to sell your property, and you can start to enjoy your new property straight away at a minimal cost.
Quick Move In Time: You can typically take possession of the home in less than one week instead of conventional move in times of one to three months. Your approval will be based solely at the discretion of the owner instead of a lender.
Advantages for Homeowners
Your property instead of being left empty will generate you income.
A future homeowner will rent your property, and will treat the property as such. It also means that someone is living on-site who will watch and guard your home.
If the tenant does not exercise his option to buy, the proprietor has enjoyed 100% of the rental benefits, without haven given up a share.
As a property owner you will receive government subsidies