Nowadays the rent with option to buy is acquiring more popularity since this type of transaction benefits the owner and gives facilities to the buyer since that big initial deposit you needed to which many fear and can not respond to is out of the way.
Although the general economic situation has improved and the property market in Spain continues growing, banks no longer offer the same facilities with mortgages as they did before the crisis. That is why many owners have begun to offer the sale of their home with the option of renting it previously for an agreed period of time.
This option though is not practise too much yet, it's becoming more popular and fits perfectly into the Spanish culture. Why? Well, renting a property is not as common practise as it is in other European countries, there is a general belief that it is waste of money, that is why young people still want to buy but not everyone has the initial capital to access their first home with reasonable and realistic costs.
The contract for renting with an option to buy integrates two subcontracts; the lease contract in one hand and the option to buy the property on the other.
What are the advantages and disadvantages of a renting a property with buying option?
- Adaptability: the conditions and payment method are negotiated with the owner since there is no single way to make this contract, it is adaptable to each client.
- Payment facilities: with this option the monthly rental cost is used as an advance payment for the possible future purchase of the house.
- The purchase is an option that the tenant has, not an obligation. As far as the owner's eyes may seem a negative point for them, but it is not that way since you will get the money for renting the property if the tenant decided not to buy. Also there are clauses that can be use to guarantee the purchase commitment of the property by the tenant.
- Keep in mind that although you do not have to pay a deposit as high as a sale, the sign for this type of contract is not as little as the one for rentals.
- In the rental agreement, the sale price of the property is fixed. In current real estate situation if prices continued dropping, this fact benefits the owner since you agreed a price. Everything can be negotiated, think you won't have to save 20.000€ minimum before you can think of buying an apartment in sunny Costa Blanca.
- Another great advantage for the tenant and possible buyer of the property is that he or she will be able to live in the house before deciding if he/she wants to continue investing in it. This is one of the reasons that drives many buyers to embark on this type of contract.
Summer is a very good time for your real estate agent to introduce this option to some home owners for the properties they sell. And if they are interested in renting with an option to purchase. So you could enjoy the summer and see if that place an neighbourhood is the right one for you and your family.
In our real estate company Naranja Spain we do not advertise rentals with purchase option because the conditions as we have already mentioned are specific for each client. If you would like to buy a house in Guardamar del Segura or surroundings (La Mata, Montesinos, Ciudad Quesada, La Zenia ...) contact us, we are looking forward to help you get the house, apartment, bungalow or land of your dreams.