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anyone done a rent to buy as owner not buyer

Discussion in 'Property Finance' started by B-Man, 25th Jan, 2016.

  1. B-Man

    B-Man Well-Known Member

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    Im looking at selling my house and although id rather it sold, if it starts taking a while im im open to rent to buy or lastly rent out. (id like to free up the cash)
    how would you go about a rent to buy option?
    anything i need to look out for?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    You won't be getting your cash until the title is transferred, usually. So this may not work for you.

    What you need is a lease with an option to purchase with a contract of sale attached.
     
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    If the property is in SA you need to be very careful with rent to buy type contracts as they are not enforceable and parties can simply walk away from them.

    If you let me know where abouts it is I might be able to advise on how much rent you'd fetch from a standard rental context.
     
  4. neK

    neK Well-Known Member

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    Enforceable on which side?
    With rent to buy isnt it beneficial in most cases where the buyer pays rent for x period of time and then walks off. Owner gets the increased rent and keeps the house. Is that correct?
     
  5. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    The problem in SA is that the buyers can then request the full amount paid above market back as compensation - hence why the purchase type is very rare here.
     
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  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Is that for instalment contracts or lease options Corey?
     
  7. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Both effectively are restricted in SA.

    Contracts which involve part payment of the purchase of a property for anything other than the initial deposit are non enforceable, likewise property options in SA can only have a limited maximum period - can't remember off the top of my head but it was something short like 24 months max.
     
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  8. B-Man

    B-Man Well-Known Member

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    how does the lease with option to purchase work? sounds similar to rent to buy but givers the buyer an option not to purchase where rent to buy is a contract to buy.

    as its in SA it sounds like theres no point looking into it anymore

    looking into both i cant really see any benefits to even try it. better off selling for a little less than i want if i have to.

    cheers