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    ihldvgybsaijsrbkxy
    Apr 29, 2021

    Advantages and disadvantages of renting with the right to purchase

    in Get Started with Your Forum

    When looking for a new home, we always think about buying or renting, but there is a third option: rent with the right to purchase . But before making any decision, you have to see what its advantages and disadvantages are.

    Sky Marketing strives to be Pakistan's biggest real estate developer ever, guaranteeing the highest international standards, prompt execution, and lifetime customer loyalty. With projects like plot for sale in park view city islamabad

    Rent with the right to purchase: how does it work?

    The rent with the right to purchase consists of two different types of contracts: the rental contract and the purchase contract . The tenant remains in the house paying a rent like any rent and when the contract is finished this money is destined to the entrance of the apartment to buy it.

    In the two contracts, all the conditions are previously stipulated, from the usual clauses to those that are part of this agreement as the percentage that will then be deducted from the sale price to the tenant or the period of time in which to exercise the option to buy the home .

    Rent with right to purchase for the tenant

    Advantage

    • The money from the rent will be used to pay the entrance to the house.

    • It allows you to save while you are renting to be able to get a mortgage with better conditions.

    • You have priority over the decision to buy the home and you can opt for it at any time during the lease.

    • If you decide to back down, it would be as if you had paid a traditional rental.

    Drawbacks

    • If the price of the house goes down and the price that was agreed at the time was higher, you will have to pay the amount that you signed in the sale contract.


    Rent to own for the owner

    Advantage

    • You can earn money with the purchase of the house and with the previous rent.

    • If the tenant backs out, you've already collected the rent.

    • For renting the house, you have tax benefits.

    Drawbacks

    • If you are clear that you want to sell it, you have the risk that the tenant will back down with the sale.

    • The sale price of the house cannot be modified, that is, even if the value of the house has risen if the price that was signed was lower, the owner will not be able to modify it for their benefit.

    • Once the rental agreement with the tenant has been signed, the landlord cannot sell it to another buyer, even if he offers more money.

    Rentals with Housfy

    If you are considering the option of renting your home, you can count on our team of experts . We know that agency commissions are very high for both the landlord and the tenant, in addition to the owners' fear of delinquency. We have decided to solve all this with our rental department.

    Normally, for a rental an agency charges up to 10% of the annual rent, with Housfy it is only € 500. On the other hand, the owner would pay € 50 per month, which would include mediation with the owner, the change of supplies, the procedures that may arise and a non-payment of rent insurance. This insurance would cover you for a few months in case of non-payment and would help you with the eviction management.


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    tajarat.com.pk


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    Hi, Thank you for sharing this information, I will surely keep these things in mind while buying the property. Thank you.

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