Rent with option to buy – an explanation
Rent with option to buy is a new concept in Spain, you could call it try before you buy. It is a contractual agreement between a tenant and a property owner, where the tenant can at any time, exercise his / her right to buy the property after residing in it during a certain time. This could normally be up to 5 years or just a few month. As soon as the tenant feels comfortable and decides to buy the property, a percentage of the rent already paid, sometimes plus part of the capital gains tax, will be deducted from the sales price.
The big advantage for the tenant is that the rent you pay is no longer “dead money” and therefor lost. The rent you pay today will help you to be able to buy your home tomorrow as it is already paying off the mortgage before you even have it. You can move into your new home without having to make a large down payment and you can try the home first. You will be able to live and enjoy your property whilst saving money to buy it. Read more »




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