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Hirepurchase Contract

December 26, 2017 in News Tags:

A question which arises frequently in recent years. How does rent to own work? A hire-purchase agreement you can from the leasing contract derive, first rent and then buy! How can such a contract by the conditions look like? Significantly for the registration in the land registry, it should be noted no purchase option in the contract, advance payments automatically lead to land registry and notary fees (purchase required)! When registration of an option to purchase has the buyer of that choice, for rent and later buy! This has resulted in that the notarization is performed to the date of purchase only! The cost (land costs, construction costs, financing costs) are linked directly to the purchase prices (inflation). Internal activities increase the market value of the property. . A hire purchase certainly has the advantage that the purchase price of the property increased after expiration of the agreed rental period or provision of equity, the fair market value of the object, which in turn positively affect a hybrid model on the collateral (E.g. 50% rent) and accumulation of 50% on a deposit account – capital guarantee in the amount of the purchase price), which is also stipulated in the hire-purchase contract. Even after the rental period in the repayment phase, the monthly burden usually not higher than previously amounts. The equity ratio of citizens has declined enormously in the last years (euro, elimination of the family allowance, reduction of tax subsidies).

Provided that economic conditions have not dramatically changed, leads the parallel accumulation of the capital guarantee further equity and by the provision of the services to the increase of the market value. After the rental period – to the portable load! Continue to the Riester allowance with Government may, as well as interest rate reduction programs like Labo, Lakra and KfW are requested to reduce the interest payments. The risk of illness or unemployment can be secured. Especially for families of the young and middle-aged generation, the hire-purchase/hybrid model provides a useful variant of the real estate acquisition Dar. Gunter Draxler

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