• Instalment Contracts Can Save Thousands In Wasted Rental Payments

    Could instalment contracts be a way to get on to the property ladder?

    I’ve just seen a post by someone who wants to know what they can borrow on a salary of £14,000. Like many people, they feel that they are wasting money on rent but due to the strict lending criteria of banks, they have no option other than to rent until they either save enough for a deposit or the banks considerably relax their mortgage application process.

    Read the post here …

    As lending criteria have changed due to the adverse economic market, everyone is feeling the pinch as the buyers are unable to get mortgages, however there are alternative ways of getting onto the property ladder overcoming traditional barriers.

    Instead of renting and throwing dead money, I can help potential buyers to secure a property using lease options or instalment contracts enabling them to buy in the future whilst paying monthly instalments now.

    Part of the rent goes towards purchasing the house over a fixed term, this scheme is known as rent to buy or rent to own and the buyer is classed as a tenant buyer.

    In the meantime they can redecorate or renovate as they wish to make it their home, unlike if they were renting. The buyer would directly benefit from any increase in price as a result of this.

    Unlike other schemes, you have 100% ownership from day 1. Solicitors can draw up paperwork to ensure that both parties are protected. You can buy the house during the term agreed, or you could sell it on and make a profit.

    There are many sellers out there who would love to sell their properties but are unable to do so due to the adverse economic climate – this where I specialise in matching the sellers and buyers and creating a win-win situation.

    Sellers get to sell their property for a good price and buyers get onto the property ladder.

    Another advantage of lease options is that the buyer is not obliged to buy the place if their personal circumstances change, unlike if you buy traditionally you are tied to the mortgage and if you don’t keep up with your payments you could be repossessed, which could have detrimental affect on your credit history.

    If you would like to discuss instalment contracts or property lease options as an investment strategy, call me call on 0203 397 7030 or request a call back.

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    About Reena Malra

    Connect with me: Google+ Reena Malra is one of the UKs most successful property investors and mentors. The strategies Reena has discovered and developed over the past few years take the focus off the price and put it on the flexible and convenient payment terms. This is how Reena can structure transactions to really benefit both the buyer and the seller. Reena specialises in property lease options, instalment contracts, rent torent, below market value (BMV), stopping repossessions, joint venture, delayed completion and tenant buyer strategies. She also runsworkshops and webinars, and offers property consultancy services and one-to-one mentoring.

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