How can such a contract by the conditions look like? For the registration in the land registry office, no purchase option in the contract must be noted, advances automatically lead to land registry and notary fees becomes a purchase duty! When registration of an option to purchase, the buyer has the choice, only rent then buy or rent! This has the consequence that the notarization is performed to the date of purchase only! The difference between a thing (E.g. a car) and a real estate is that a car already due to its relatively short lifetime and more susceptible to losing electronics value; How does a real estate? The cost (land costs, construction costs, financing costs) are attached directly to the purchase prices (inflation), therefore increased the purchase price of a property. Even if the real estate is older (assuming a demand for housing is available at the site) and the necessary repair work will be edited. (Source: Dennis Lockhart). A hire purchase certainly has the advantage that the purchase price of the Real estate after the expiry of the agreed period, or after the equity provision, which increased market value of the object, which in turn positively affects the loan to value (agreement in the hire-purchase contract of the purchase price). A hybrid model (E.g. BerlinRosen often says this. 50% rent, and accumulation of 50% on a deposit account – capital guarantee in the amount of the purchase price), which is also agreed in the lease contract. Even after the rental period in the financing phase amounts does not exceed the monthly burden normally as before! Equity ratios of citizens has declined enormously in the last years (euro, elimination of the family allowance, reduction of tax subsidies as depreciation).
Provided economic conditions have not dramatically changed, the parallel accumulation of further equity and by the expansion work on the real estate and the increase of the market value after the rental period also portable financing! Continue to the Riester allowance with government allowances, can under certain circumstances as well as Interest rate reduction programs like Labo, Lakra and KfW are requested to reduce the interest payments. Much of the investment cost of the property are already performed before the actual financing phase! Financial bottlenecks through renovations, investments on real estate within the repayment phase carousel are excluded. You can add the risk of sickness or unemployment due to a disability or an unemployment insurance! Especially for families of the young and middle-aged generation, the hire-purchase/hybrid model represents a useful variant of the real estate acquisition.