Alternative ways of purchasing property.

If due to financial shortage you're struggling to buy the property of your dreams, you might want to think about two alternatives to the traditional purchase and sale of a home: the outdated purchase through instalments or the newer and popular lease-to-own (also known as "rent-to-own").

Installment purchase contract is used for the acquisition of real estate in which the payment of the total price is not done at the time of acquisition of the property, but is delayed over time through a series of payment installments.

This type of installment purchase is normally used when the property for sale has a price the buyer can not afford to pay in full and by means of this contract reaching a more affordable access to the property by the buyer.
In short, it could be said that this installment purchase contract is a form of financing through which the seller agrees to receive a portion of the sales price on a regular and deferred basis, and through which the buyer agrees to pay the deferred portion of the price on a number of monthly installments. In this case, the payment of deferred price can be negotiated either by signing bills or by obligatory bills. In addition, with the installment purchase contact an agreement from both parts has to be reached with regards to a decisive condition. With this condition, the property sold would act as a form of guaranteeing the payment of the price, so if the buyer defaults on any installment payment, the seller may demand payment of all outstanding installments or termination of the contract, which is that the parties must mutually returned services provided. In the event of termination of the contract, the seller is entitled to a percentage of the amount of the installments paid in compensation by housing tenure by the buyer and is equivalent to an amount equal to the initial outlay to rise to contract deed. The seller may demand appropriate compensation for the deterioration of the thing sold.

Rent-purchase contract is a very interesting alternative being recently introduced in Spain. Many property owners rent them with a modality that, for a period usually between two and five years, the tenant has the option to purchase at a price already agreed. The big advantage is that all or part of the money paid in rent is deducted from the price agreed when they exercise their option to purchase. This option is becoming increasingly popular also among tenants fed up with paying dead rent money each month. In order to be eligible to apply for Rent to Buy, tenants must be in employment full time and have enough income coming in to be able to meet the monthly payments.
What are the benefits of this new investment option? With the Rent-to-buy scheme, the buyer owns 100% of the property from day one. Outlays to get started are very low and the starter money (deposit) required can be deducted from the final purchase price of the property. Furthermore, should the property value increase, the buyer keeps the difference. When tenants move into the property, they are free to make additions or enhancements to the property as any homeowner. Tenants can purchase a home over a time scale that works for them. Last but not least, entering into the tenant/buyer agreement, there is no obligation to buy the property once the rental period has ended; therefore, tenants can walk away if the circumstances change for them. When the rental period ends, tenants can decide to purchase the property at the price agreed at the outset; if they were just renting the property, they would have paid three to five years rent for nothing. The Rent to Buy allows great savings in comparison with the traditional purchase methods, as the total cost of the due monthly fees is paltry in comparison with mortgage interest rates.