RENT TO OWN: A GOOD CHOICE
The option of renting to afterwards buying the same property must be deeply studied. This might be an option that may come up at any time when searching for a place to live. If you don’t really know about it, you should get a little informed as you might be losing a great chance. Hereafter you will learn about this option.
What is the rent to own?
It is a contract which has two subcontracts; on one side there is the rent contract and for the other side the purchase agreement. If you accept these terms you will be under the terms of a rent contract but once it is over, you will have the right to get to buy the property in the agreed price (the month’s rent already paid will be discounted).
It is a kind of contract that offers an advantageous situation for both parties. As tenant you will be living in a property that eventually will be yours; meaning that you invest on it from the very first day. As landlord, this way, the property will be always rented.
Moreover, you must know that the initial outlay will be higher than a conventional one. This way you will be paying a part of the final price. This amount won’t be returned to you at the end of the contract, as it does happen with the bail. Definitely, it a kind of agreement that requires a high level of security, economically speaking.
Pros and cons of the rent to own contract:
Renting in Barcelona is always a good option, specially if you have this kind of contract. The first pro is that as tenant, you will be able to decide when to finally buy it, which means that you will have time flexibility. But if you are the landlord, it is an easy way to get rid of the property.
There are, as well, some tax advantages if choosing this kind of contract. As landlord, there are IRPF exemptions and the own contract has some beneficial terms, for example, the capacity of terminate the contract in case of non-payment.
However, the purchase-sale might vary over time, which is a big disadvantage. Likewise, the landlord will be force to adapt the price depending on the price market, meaning sometimes a waste of money and time.
Conclusions
The rent to own is a good option to sell a property in Barcelona. It is a contract that offers benefits and flexibility to both parties.
At Casc Antic BCN we will assist you so you can get to your dream house.
