Rent To Buy
What Is Rent To Buy?
So with rent to buy, you rent the property with an eye to buy in the future. You move in, pay the rent and live as you would as a regular tenant, but when it comes to the end of the agreement - two, three or even five years - you have the chance to buy the property from the rent to buy company. The crucial part of the scheme is that you can buy the property at the price agreed when you moved in - and as everyone knows, after a long time a property may have rocketed in value. This means rent to buy is a bargain - you can buy a property at a price not seen for years.
Also with rent to buy you have the chance to really test where you want to live. Some people regret where they live - they don't like their neighbours, their situation changes, they want to be closer to a secondary school - but they might be stuck. With this scheme you can test the waters by renting then choosing to buy later. So you can move if you do not want to live in the property, but if prices are rising, new developments are being built round you and your neighbours are a delight, then why not take up a rent to buy bargain and buy?
But the best reason to go for a rent to buy property is the time it can give you. The biggest single problem for first-time buyers is saving up the deposit. But with this plan, you have time to save. The rent will be set so as you can save and the house price will always be lower than other properties, so you can get on with building that nest egg. And as a sensible rent to buy borrower, you can make sure your credit score stays high, so when you come to buy, you can get the best deal possible.
Even if you have the time, it's still best to talk to a financial adviser to see if rent to buy is your best chance of getting on the ladder. Maybe you have a better financial set up than you think and you could buy now, or maybe you have a long time to go before buying is a viable option. Whatever your situation, an adviser can help and make sure you are best placed for a safe, secure future.
* Halifax, June 2008
