Rent With Option To Buy

Consider in your Plan to achieve your own home: the scheme of rent with option to buy. If you carry more than 5 years renting, if you feel very good in the area and in the space where you live, if you already set a trust relationship with the owner of the House that you rent. Then they make this option. You have to do? Step 1: Total SQFT/m2 of the House/apartment where you live. Get the cost per FT2/m2 of the houses/apartments similar to yours in size, year of construction and location. SQFT/m2 total multiplied by the cost per FT2/m2 and get an estimate of the value of the House/Department. According to your experience of 5 years living in the House/apartment evaluates requiring major repairs done in 10 years.

He estimated the cost of those repairs. Step 2: to the estimate of the value of the House/Department discounts you the cost of major repairs. You’ll get a result that will allow you to make an offer to purchase to the owner. Talk to the owner and It presents the offer to purchase. It considers that your offer to purchase may be different to the owner of the House/apartment. Sets a space of negotiation to reach an agreement with the owner about the purchase/sale value. Step 3: Once agreed rent with option to buy and the value of the sale you have to prepare and sign a contract.

He establishes: the amount, the term, a down payment, monthly payment, rights and obligations for the same period. Te recommend that in the case of the initial payment you use, if you can, money saved for not resorting to banking procedures. If does not reach you with the total amount of initial payment negotiated this in two or three partial payments. The monthly payment will include an interest owner shall propose, since the is funding the operation. It negotiates the interest rate is equal to or less than the average fixed mortgage rates. Therefore the monthly payment will be higher than your current monthly income. Worth the effort by these paying money for the purchase. Requests, the owner, the drawings of the House/apartment to give you the information structure, facilities and construction details step 4: during the term of the contract will be responsible for basic maintenance and the payment of the services that you use every month. In the case of major repairs, if the owner you don’t accept discounting of the value of the House/apartment, it negotiates that you will pay them and that they be included as contributions to the purchase/sale. It takes into account that during the process you can generate additional revenue and they paid to purchase/sale. You have to consider this variable in the contract that will allow you to conclude more quickly with this commitment. The property taxes to continue paying for the owner until the contract is terminated and you’re the new owner. The contract ends when you concluyes with the payments and the property is transferred to your name. What do you think? Are you interested? Think, reflects and analyzes whether it is your best option. If your answer is affirmative then uses steps that you showed to make a Plan and believes as primary activities which we explain here. In addition you will have to include sub-activities, timelines and costs. Well, until next time! Jose Luis Figueroa, architect online. Original author and source of the article