Rent to own schemes

[sethsmum79]

Hi,

With the cost rent increasing dramatically of late, i've just been doing some web browsing on different home loans / home buying methods.

I have noticed quite a few companies now offering "rent to own" plans.

The one in particular that I've been looking at is Mr Stop Rent (not sure if I'm allowed to post the address here!). This company advertises in my local newspaper, but I am unable to find out much about them, or find reviews from people who have used their service.

Basically what I can gather is that you pay $2,500 deposit, a purchase price is fixed and you then "rent" the house from them. When you decide you want to buy it, 30% of what you have paid in rent goes off the purchase price.

What are your thoughts on these?

[andie_pandie]

Hi Sethsmum

I would be very careful on any type of rent to buy schemes, even though they are stating that 30% of the rent paid will go towards your deposit you can not guarantee that they have not hiked up the purchase price of the property to recoup this and you may end up paying higher than normal rentals etc.

Also if they do charge over normal purchase price when it comes value the property it may not value up to the contracted price.

If you do choose anything like this please find out all about the company and do your homework very carefully.

Regards Andrea