Tonights RTE News contained an item about a housing scheme in Wexford where people are being offerred the houses to rent and the rent paid is subtracted from the option to buy in 3 years time.
Seems like a great idea. Its been oversubscribed according to the Agent being interviewed on air.
I think this could help shift a lot of empty properties.
The price has to be right though.
Why can't people simply buy their own houses like they always did?
What's with the financial innovation all the time?
Err...'cos they're waiting for the prices to fall...which causes the prices to fall....so they wait...etc....etc.....
But meanwhile they're wasting money on rent.
And the VAT tied up in empty houses is not going into the excheqeurs coffers.
Whats the downside?
GReat idea my hole. These houses are probably worth far less than the 195k. Two bedrooms for goodness sake in Wexford which has hundreds of empties.
Rent seems very high too. Only one thing foe it. House prices have to fall to a level where people will buy. That will probably happen when rent is more expensive than mortgage. Oh and rents are falling off a cliff too so this process is just really getting started.
Anyone would be insane to buy right now. Only problem is wives and girlfriends don't think like that.
Dam I thought this a thread about someone buying RTE.
Hmm, under domestic pressure there Rob I'd say..? Should have saved a deposit while you had a chance..Originally Posted by robert151410
Harsh I think. Thought it was a good idea for those that are looking for a house. You pay your rent which is fixed for 3 years, (750 p/m on a 3 bed semi selling at 195k, your rent comes off the agreed price which is also fixed at 195k, so if you make the 3yr agreement the idea is that your 27K has gone into your own house so you can decorate as you please and with a 10% deposit on the remainder of 168k its yours..
It seems like a great deal for both. Renters get to take money off their own house (assuming they get their sums right) and the landlord has a gauranteed income and a probable buyer, they take the risk that the house would not increase in val over that 3 years.
Dont know about the value of the units but looked reasonable..
Originally Posted by The Red Rose of Cork
I dont care about "the majority of people"
Because let to buy allows the developer pay less tax.
It allows the Developer to avoid paying VAT on the sale price while is usually about 1/9th of the sale price.
It also allows the developer to exit @22% capital Gains Tax as opposed to paying tax on a trade @ the higher rate
Excellent idea.
Adversity is always good to get the creative juices flowing.
A demagogue is someone who will preach doctrines he knows to be untrue to men he knows to be idiots.
Chances are the house will be worth less after 3 years in this economic climate so the idea that a landlord is taking the risk his property will be worth more than hes selling it for doesnt seem so convincing.
If the developer is prepared to deduct 3 years worth of rent for example then 750 Euro times 12 Months times 3 years = 27 000 Euro discount and also fix the sale price at 195,000 euro in 3 years time then what exactly is the real value of the house right now if it was for sale as is with no gimmicks ?
As well I know.
Hence buying a house in 2005 against every instinct I had.
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