The German Institute for economic research (DIW), proposes a state hire-purchase model, with the multi-family residential property to purchase. Here, the state would erect cheap buildings and dwellings at cost price, as well as to zero-rate tariff to purchase interested candidates.
To the Person
Tobias Klingelhöfer is a lawyer and for many years as a legal expert for the ARAG active. As a guest columnist for FOCUS Online, he informs consumers about their rights and obligations in different life situations.
In his model, the DIW comes to the conclusion that the monthly Repayment to the state lease-purchase only little would have to be above the average current rental prices. Whether this model will be implemented ever, it can only show the future. As long as buyers remain on the corresponding offers of the brokers or builders to rely. Whether the worth is questionable.
Simple principle – but …
hire-purchase was in the seventies, once popular and is now revived again of estate agents and property developers again. It sounds so easy, how tempting The potential buyer, as tenant, the apartment or the house, and is obliged, in a certain period of time, the rented to buy four walls. The rent will be credited towards the purchase price. Whoever thinks that he can fulfill the dream of the own property with little equity, you’re wrong under certain circumstances.
I warn before too flowery Dream of the own home. Because without a good measure of equity to the own four walls now time. In many lease agreements also require a Deposit of up to 20 percent of the purchase price is agreed upon. Some of the blue-eyed hire-purchaser had to accept that he has paid for his property in the end even that expensive. Therefore, for every hire-purchase to check the contracts carefully or to check.
So that the load on the frame remains
The rent will be credited towards the purchase price. Sounds good, I rate, but even here caution. What is the part of the rent, which will later be credited on the purchase price? Often it is only a small part of it.
furthermore, are inflated by the Rent of the objects offered often from the outset. If something must be placed for the upcoming purchase of the property back, summed up the monthly load quickly on 1000 or 2000 Euro.
then, there is not even a luxury-objects. Quite the contrary: Often agents or developers with hire purchase-try and a property to get rid of that has appeared in advance as a shop Keeper Offered. With the FOCUS Online loans comparison (display) Now follow-on funding
calculate To the right of termination, pay attention
during the rental period, often only a small part of the monthly rent to the purchase price will be charged, remains after ten or 20 years, still a large part of the purchase sum. To settle the, need a lot of hire-purchaser the same period.
Under certain circumstances, the obligations of a lease-purchase may, therefore, up to the age of retirement to continue; and if the remainder of the purchase price must be abgestottert with a credit, is the thing completely unpredictable. Because interest rates can no one over 10 or 20 years ahead. In the case of such a long duration also other risks lurk but.
Therefore, the contracts should contain a right of termination. Otherwise, it can lead to changing life circumstances such as divorce or the loss of a job, immediately into financial Ruin. Also, a possible insolvency of the seller should be protected in the agreement. Therefore, I advise to let the contracts of independent lawyers consider. PDF Of Focus-real estate, Atlas 2019
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