Rental, option to purchase
Rental with option to purchase’ is set to be the star product of the real estate market in the next few years. It provides an unbeatable alternative in response to the economic situation in which we are living nowadays and to the current market prices which have suffered a considerable change and which continue to fluctuate in a range which is often inaccessible to the buyer.
‘Rental with option to purchase’ is basically a rental contract in which both the tenant and the owner agree beforehand the possibility of buying the property in part or in the long term.
As a tenant, what are the main advantages that this option offers me?
1. You will be able to enjoy all of the advantages that renting a property offers you, whilst at the same time avoiding the inconveniences of buying a property, especially in terms of financing. You can have the use of the property without having to negotiate mortgage terms with banks in a time which is as difficult as this is.
2. You live with the ease of a tenant, but enjoy many of the rights of a property owner. The traditional rental agreement does not afford you any of the rights of ownership, but in the moment that you add the option to purchase you do.
3. The money that you pay monthly is not ‘wasted money’. In the moment that the purchase is formalised, a high percentage of the money that you have been paying whilst living in the property as a tenant will be discounted from the final price.
4. It gives you time to get a loan before formalising the purchase.
5. You do not have to be tied to a mortgage from the first moment.
6. You can live in the property before buying it and so you can see if it is exactly what you were looking for and if it adapts to your needs.
7. You have the last word. You are not obliged to make the purchase if, once the agreed rental period is up, you feel that, for whatever reason, that you no longer wish to do so.
8. Within the period which is specified in the contract to exert the right to purchase the property, which is normally within 2 to 5 years, you can materialise the purchase of the property when you wish to do so.
9. You will have the right to fix the price of the property from the first moment, when you sign the private rental with option to purchase contract, and this price will remain invariable.