What if I bought the house where I live for rent?

Published on June 28th 2019

The tenant gains time to save for the entrance

Spaniards allocate 34% of our payroll to the lease of a house of 80 square meters, as calculated in social networks and real estate portals. Is it worthwhile to continue renting or do I start shopping? Those who have doubts about whether it is worth buying that home or not, have the money to enter, have to know that there is an intermediate way: rent with the right to purchase.

How does rent with purchase option work?

The first thing that the interested party must know is that this possibility is not contemplated ex officio. If, as a landlord or tenant, you are evaluating this option, you must expressly state it together with the rental agreement.

What issues should be included to avoid scares?

Duration of the option.

The price of the premium.

The purchase price.

Amounts to discount.

Consequences of non-compliance.

Benefits and losses for the tenant or possible future buyer

 On the positive side

 - The rent money is not considered a lost investment, but a future investment.

 - The buyer earns a few years of margin until he acquires ownership of the property.

 On the negative side

- Since it will be deducted from the final payment in whole or in part, the monthly rent could be somewhat higher.

 - Faced with a generalized price decrease, the amount set in the contract may be expensive for the market moment.

Advantages and disadvantages for the owner

Benefits

 - If you want to sell the house and you did not get it, now you are closer to achieving it. - Receive an income monthly, in addition to the initial premium.

 Disadvantages

 - Lose the opportunity to sell your home at a higher price or before the tenant decides. - You are giving financing to someone who can not get a mortgage.

Source: elpais.com

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