HELP! - Need some advice

Abbid

Hi,

Im a FTB looking to get onto the property ladder, i know its not the best of times to be looking to buy and it would be better to rent and save at the moment but i've come across an offer that might be worthwhile.

Basically, some new houses were built and were supposed to be on the part rent part buy scheme, but because of the economy they were unable to sell them, so they have put them all on rent. so you rent for now with a look to buy in the future.

the proposition is that you pay rent of £750/m, and then when you are ready to buy, they refund 40% of the total rent that you have paid so far (up to a maximum of 10% of the value of the house) which you can use as a down payment on a mortgage. so you are saving just under 4k every year,

So in essence, this is the same as renting and saving at the same time. the only difference being that you do not have access to the cash should you need it, which may or may not be a good thing.

What do you guys think? good idea?

hoggums

I think this is a good idea provided:

a) the rent is comparable with equivalent properties in the area (i.e. it's not expensive)
b) you do not agree a purchase price now

point b) is most important in my opinion.

Abbid

The purchase price will be whatever the value is at the time of buying.