Tired of moving from one rented apartment to another, but you don't have enough money for your own home? Even life-saving installment plan can't afford it? This is the most widespread problem of modern home seekers. A young family can rarely boast of a large budget, but this is no reason to remain a lifelong guest in someone else's apartment. THE Capital assures that there is a way out. Read on to learn how to become a real estate owner with just a steady paycheck and persistence.
What is a lease with the right to buy and is it worth your attention
The term "lease with the right of redemption" does not need a long explanation, so we will quickly. Such an agreement allows the tenant to turn into a full-fledged owner over time. In its essence, this method of purchasing real estate is similar to the installment plan, but differs somewhat from it in terms and terms. All payments are divided into a deposit and standard monthly payments of a fixed rent. No interest is charged, which is quite beneficial. However, if the conditions are not met, you risk losing the deposit and being left homeless. This particular roof, of course. The action algorithm is quite simple:
- Subscribed lease agreement, in which an additional item on the possibility of redemption is noted.
- A deposit is given to the owner of the property.
- You live in an apartment and pay rent every month.
- Each subsequent payment is deducted from the value of the object.
- Gradually, you cover the entire amount and the property is transferred to you property.
The end of this story can be both happy and not so:
a) you lived in the apartment for the entire term, transferred the entire amount to its owner, he added it to the deposit - voila, now you can call yourself the owner;
b) you have been steadily paying the rent, at some point you changed your mind about buying real estate or were forced to move - boom, boom, boom, the agreement is canceled, so you can wave your hand goodbye to the deposit, because in case of termination of the agreement, it is not returned.
The only reason you can lose money and real estate is yourself. Therefore, before you dare to sign such a contract, carefully consider all the nuances. Is this apartment really worthy of becoming yours? Do not rush to answer this question. The ideal option would be a pre-lease without an agreement to buy. One month is quite enough to reveal all the hidden flaws and make an informed decision.
To rent or not to rent - that is the question
Even the most perfect things have advantages and disadvantages. Rent-to-own is no exception. We offer you to determine for yourself what is predominant in it - pros or cons.
➖ The price is fixed at the time of signing the contract, so future changes in the real estate market will not affect you. Yes, you can make a good profit if the value of housing will increase over the years, but the opposite development of events should not be ruled out either.
➖ Buying real estate on primary market, you can at any moment remember about assignment and use it skillfully. However, with a lease with the right of redemption, you do not have the opportunity to resell the apartment until the contract expires and all its conditions are met.
➖ If your plans suddenly change, you will not be able to return the deposit, and any additional money paid will be considered just an honest rental fee.
➕ The fixed price is worth mentioning here, because it can really play into your hand.
➕ You can immediately move into your new apartment and start furnishing it to your taste.
➕ Monthly payments are equal to the size of the standard rent, so they do not hit the wallet so hard and the process of purchasing an apartment is quite smooth and imperceptible.
Do not forget about the benefit for the lessor. His apartment turns into a stable business. Some properties can remain on the market for years, so sometimes it is more profitable to enter into a long-term relationship that will eventually lead to the set goal, than to lower the price every month in the hope of attracting at least someone.
We are preparing documents for signing a lease agreement with the right of redemption
The list of documents required for a lease with the right of redemption is not much different from a standard set when buying real estate. It includes:
- International passport;
- identification code (INN);
- power law for an apartment;
- lease agreement with the right of redemption;
- a document certifying the transfer deposit;
- reference may be required source of income to confirm solvency;
- also, in some cases, it will not be superfluous to issue an insurance policy for the apartment for the period of its rental.
💡 Recently, the "Domivka+" program came into effect, which provides additional benefits and opportunities for some categories of the population. Anyone can become a participant, but only internally displaced persons (IDPs) and persons with the status of a participant in hostilities can count on more favorable conditions. In order to receive benefits, they must be registered as an apartment in Kyiv. While this program extends to a limited range of residential complexes:Honeyed”, Liko-Grad Perfect Town, “Italian Quarter", Terracotta, "Berth 8", "Holosiivskyi", Ok'Land, "Avenue 42".
