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Rent To Buy Advert On Rightmove

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I saw this today and don't quite know what to make of it.

It seems to be mostly aimed at the self employed who are unable to secure finance.

Nice place to live while they wait for bankruptcy :blink:

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Vendor finance

The last stage of seller desperation.

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I saw this today and don't quite know what to make of it.

It seems to be mostly aimed at the self employed who are unable to secure finance.

Nice place to live while they wait for bankruptcy :blink:

My link

This is used a lot in the Spanish property market.

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Stamp duty deferred to minimise your costs.

It seems remarkably honest of them to tell you what you won't be getting, even if you need to think about it for a few hundred milliseconds :-)

Nice place to live while they wait for bankruptcy :blink:

I fear you misunderstand. It is unlikely you would get made bankrupt merely because you cannot meet the payments on this "unique" purchase as there is nothing to reposes and split between the creditors, although I certainly cannot rule out the contract specifies that on breach they will have the "purchaser"'s first born and wenching rights to the wife.

I am tempted to get into this BTL variant if there really are suckers willing to "buy" on these terms.

Edited by MongerOfDoom

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No, or have paid scant attention to terms. I'll only look on Rightmove to check that prices are falling at a healthy rate tbh. In effect, I do rent to buy already, just that I'd never buy where I rent - I'll take somewhere brand new I think.

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Here's a new one: http://www.renttobuy.co.uk/

If anything is "dead money", this is it :lol:

Edit: Rent - pay someone else money for their house

To buy - if they could afford to get even an interest only mortgage (dead money unless you're a banker) they would have.

This is - pay rent, then aspire to one day owning something which will (by the time that happens) be worth much less than now, and in the mean time, please pay the interest (dead money) and whatever fees we feel like. Mega.

Edit: this wouldn't even wash during the boom, when HPI was a sweetener (long con)

Edited by jammo

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If anything is "dead money", this is it :lol:

Edit: Rent - pay someone else money for their house

To buy - if they could afford to get even an interest only mortgage (dead money unless you're a banker) they would have.

This is - pay rent, then aspire to one day owning something which will (by the time that happens) be worth much less than now, and in the mean time, please pay the interest (dead money) and whatever fees we feel like. Mega.

Edit: this wouldn't even wash during the boom, when HPI was a sweetener (long con)

The advertising shows that you pay rent, AST, to the owner, and pay fees to have the first option to purchase in the future, at an agreed price....KEEPING the EQUITY gain at that time.

Now, if I beleived the market was rising, and was the landlord...WHY WOULD I DO THIS??? Id rent and sell later and keep the equity myself.

Now, If I beleived the prices were about to fall...ITS EXACTLY the sort of scam I would enter into....except..the renter has the option NOT to buy too..

Indeed, no-one seems to be compelled to do anything at all...

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Vendor finance

The last stage of seller desperation.

I agree, for a house of this value it makes no sense.

Who buys a house at this price without having 100K or so to put down?

tim

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Here's a new one: http://www.renttobuy.co.uk/

Taking one of the "properties of the week" as an example :-

http://www.renttobuy.co.uk/propertyDetail.php?propertyId=235

Rent = GBP550 per month. Using rightmove for this postcode + 1/4 mile this rent appears to be at the top end of the range.

http://www.rightmove.co.uk/property-to-rent/find.html?locationIdentifier=POSTCODE^159161&radius=0.25

The property was purchased in July 2010 for GBP80,000

http://www.zoopla.co.uk/house-prices/birkenhead/whitford-road/?q=%2045%20Whitford%20Rd%20%20%20Wirral

My guess is that the scheme is designed to extract maximum rent from the prospective 'owner tenant' while preserving the 'owner landlord's" capital.

If the tenant exercises the purchase option the original owner gets his money back having enjoyed an 8.25% yield in the interim.

If the option is not exercised then the original owner simply re lets at the prevailing market rent and is no worse off.

If there is any profiteering I suspect that it is in the fees levied by the agency to the current owner.

Edited by Buccaneer

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Vendor finance

The last stage of seller desperation.

+1

Sellers trying to scoop up the last vestige of idiot buyers before they have to reduce prices.

These schemes just cry out "people can no longer afford to buy what they are selling"

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Taking one of the "properties of the week" as an example :-

http://www.renttobuy.co.uk/propertyDetail.php?propertyId=235

Rent = GBP550 per month. Using rightmove for this postcode + 1/4 mile this rent appears to be at the top end of the range.

http://www.rightmove.co.uk/property-to-rent/find.html?locationIdentifier=POSTCODE^159161&radius=0.25

The property was purchased in July 2010 for GBP80,000

http://www.zoopla.co.uk/house-prices/birkenhead/whitford-road/?q=%2045%20Whitford%20Rd%20%20%20Wirral

My guess is that the scheme is designed to extract maximum rent from the prospective 'owner tenant' while preserving the 'owner landlord's" capital.

If the tenant exercises the purchase option the original owner gets his money back having enjoyed an 8.25% yield in the interim.

If the option is not exercised then the original owner simply re lets at the prevailing market rent and is no worse off.

If there is any profiteering I suspect that it is in the fees levied by the agency to the current owner.

It would be interesting to know what the agency are charging, because we're not exactly talking big money here, are we?

I'm sure fees will swallow up much of the "profit".

Seems like the seller has got another property on with Renttobuy in Wakefield. The price paid was £36,000 in 2001. I wonder if he MEWed on this one to buy the other one? :blink::unsure::ph34r:

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I saw this today and don't quite know what to make of it.

It seems to be mostly aimed at the self employed who are unable to secure finance.

Nice place to live while they wait for bankruptcy :blink:

My link

....must be breaking the FSA rules .....front garden lenders ...... :rolleyes:

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I saw this today and don't quite know what to make of it.

It seems to be mostly aimed at the self employed who are unable to secure finance.

Nice place to live while they wait for bankruptcy :blink:

My link

Half a bloody million quid!!!

:blink:

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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