How is rent to buy scheme. Is it safe ?

Question

I just want to rent a unit. But the developer is offering me rent to buy later scheme. He says that the rent would be credited to buy one year later if I want. How does that work ? Should I be careful. He says he will not be able to give it to me unless I rent to buy. I just want to rent and I really like the place.

Answer 1

Always be careful, especially when someone is telling you to do things differently than you originally planned. Discuss all the details upfront before you sign the contract. Look also into the value of the unit and how much the developer will be selling it to you to make sure its not overpriced. If you see yourself living in the unit for 5+ years and the area is appreciating or does not have a lot of foreclosures, then the lease to buy option might be to both parties' advantage.

If buying a house is not in your near future plans because of whatever reasons, then don't get derailed or appeased to sign a lease to own contract. Only sign the lease if it does not stipulate that you will be required to buy after the rental period is over. Read it carefully because the language can be mind boggling sometimes. I wonder why they just can't put this things in plain english....and in a sentence or two.