Rent to Buy: Killing Two Birds with One Stone
In the current financially constrained environment, potential first-time buyers are finding it difficult to access mortgage finance. It is a parallel problem for developers as debt funding for development remains scarce and expensive.
A rent to buy product allows a prospective buyer to move into a property as a private rental tenant, with an option to buy at a pre-agreed price in a set period of time. During that time, rent is paid and this is “saved” up and offset against the deposit at the time of purchase.
As such it is an innovative funding solution for both buyer and developer, unblocking both ends of the development chain.