The Bank of Lithuania notes that the rent to purchase services started in Lithuania in 2015. and the delivery program is constantly being expanded. The conversation partners emphasized what they should pay attention to when choosing such a service.
Real Estate Analyst: offers the worst apartments
Arnoldas Antanavičius, head of Realdata, believes that the supply of rental properties in Lithuania is currently poor enough and usually the worst apartments in the projects are offered.
"It is likely that the rent is offered by the apartment because it is difficult to sell under normal market conditions. Someone who is tempted by such preferred terms may be able to buy an apartment with low liquidity for the current market price and when it is in the future it will be necessary to sell to a normal buyer, it cannot offer a lease, "says Antanavicius.
According to him, if all goes well, a person will in principle live for free and therefore contribute. On the other hand, without taking into account the financial possibilities and circumstances, it can become a very luxurious rental.
"It is a reassuring fact that if a person does not have a home, he or she pays the rent. At the moment, the lease payment is slightly higher, depending on the proposed period, or 30 or 24 months. In the past period, the premium is approximately twice as high as the rental market. (…) When the buyer buys such an apartment, he signs the amount he will buy in the apartment two years after the first contribution, but if, after two years, a completely different situation (…) If after 2 years the market starts to fall, transactions with a lower price will fall, the value of the asset will fall, so that the loan will no longer be available. changed for two years, the cost of lending is increasing, different situations can occur and loans are no longer easy to obtain or will not be available.In the worst case, a person loses the amount that he would had to pay for a rent, but if all went well, he lived for two years for free and saved his first contribution. It's just like a lottery, "says Antanavicius.
If someone can hardly get a loan now, he says he would not recommend that person to make such a decision, because it is likely that the loan policy will only get tighter in the two-year period and we have a very good loan period lived.
"Horizon is showing tighter times, higher interest rates, higher demands. I think that such a decision can be made by those who now have a reserve to get a loan but want to save and live for two years for free," trusts the analyst.
The Bank of Lithuania: four points of interest
Edita Giedraitė, chief economist of the Macro-prudential Policy Department of the Bank of Lithuania, reports that when choosing such a way to accumulate the initial contribution, it is necessary to assess the new risks.
First of all, it must be borne in mind that a credit institution may refuse to grant a home loan in the event of a change in the financial situation during a certain lease period, such as loss of income. Secondly, loans can also be lost due to regulatory changes.
"A home loan cannot be granted due to changes in the regulations (responsible credit regulations, regulation of credit institutions) or due to changes in the rules for internal lending by banks. Prior to the conclusion of the lease contract, the creditworthiness of the customer is assessed At the end of the lease, the lender can make a stricter assessment of the borrower's financial position and can therefore make a higher initial contribution or a more rigorous assessment of the maximum part of the income to be earned. relieved requirements.
The solvency of the client, the monthly loan payments and the monthly income ratio, as well as the required minimum amount of the initial contribution are estimated on the basis of the regulations that applied at the time of the lease and taking into account the financial situation of the client, but the credit institution only decides on the loan at the end of the lease period. The financing conditions applied during the lease period can therefore change considerably and the purchase of the house can become impossible for the customer, "informs E. Giedraitė.
It adds two more risks that could lead to the purchase of an apartment after the lease term.
"If the price of rental properties changes or rises during the rental period, the consumer may, depending on the contract conditions, pay more equity than planned at the start of the rental period. As a result, the consumer may not be financially able to rent the rented accommodation to buy.
The terms and conditions of the lease service agreement may also contain additional terms and conditions, therefore it is advisable to carefully evaluate all the terms of the contracts. For example, leave the service provider the right to decide not to sell the property after the lease has expired.
In the case of these risks, customers may lose the rent paid for the initial contribution, unless the lease determines otherwise. In such a case, the customer would incur losses due to the installation costs of the home and, on average, about EUR 100 higher than the market price, "she says.
As the Bank of Lithuania representative notes, because the service is still new enough, the Bank of Lithuania has not received any complaints about users regarding this service.
People who use the service – it is necessary to find out more about the entire project
DELFI spoke of two residents of Vilnius – Simon and Eglė, who bought living space with a lease service. As both girls confirm, there are indeed risks, but the service is generally satisfied and recommended. It is important to know what to look out for.
According to Simon, the supply of rented homes is actually limited. Only the apartments on the ground floor can be selected in the chosen project. And this is not the case as the apartment on the first floor but with a nicer view – it is not offered for rent. Admittedly, the Vilnius adds that everything depends on the project. Others may also find offers on the second floor, but the most attractive apartments do not usually fall into the category of this service.
The girl recommends checking the contract because there are also points that when the neighbors call the police for a fuss, the lease can be terminated by a unilateral decision.
"When choosing a home, first check that the bank provides the loan, as it must issue a letter of guarantee that if you have built up 15 percent the bank would provide a loan. Admittedly, he does not undertake to do this on time The contract is then signed What is the biggest hit when you file a complaint with your neighbors or invite the police, you can unilaterally cancel the contract And finally, neighbors can be anything to complain about, even if you are late When you are paying your contributions, the two delays can unilaterally cancel the contract, because the apartment was without installation and mentions the contract, we cannot demolish the walls for two years and rebuild it as we wish. we cannot change the layout because the apartment can lose its value if we do not finally buy it.
We also asked for a place for the car, but we were told that the rent does not give the rent, although we later learned that it is the rent. Those who bought a house in the first phase received it and the second did not understand it, & Simon said.
The villagers said that if a few or several months in advance, the loan can be started earlier than 2 or 3 years. Once you have accrued your contribution through the paid rent, you will be restored through all banks in search of the best deal.
"The banks immediately said they were optimistic, there was no one who would have refused to grant loans. These deals were competitive and it was even possible to hit the bank to offer more interest. (…) During these 2 years , do not make any commitment, so as not to damage your credit history in the meantime. Reduce telephone bills. (…) I know only one friend who had to look for a second job to pay all contributions because they were too large financially, "said Simona.
The girl stated that she had paid a "rent" of 600 euros for the first down payment for two years a year. She also advised that notary fees are still expected. The latter may be greater if contact is made with the notary designated by the developer. It also requires attention for the project itself.
"After a while, the problem of the project itself came out with such a curvy approach to leasing customers. The door had to wait for the rubber bands to wait longer, and the balcony was handled faster by regular customers than by us. ( …) Everything is fine, but the problems lie in the common project – there are not enough parking spaces, one side of the underground parking garage, a garage door, cheap garden lighting systems that do not work halfway in. When buying an apartment when only 5 of the 13 houses being built, it is difficult to understand what the final project will be. Many plans have changed, for example garage entrances have become different from what they were originally pictured, "said a citizen of Vilnius, who advised all details to know about the project before choosing an apartment.
"The idea is very good that you can't save and buy without saving and without a certain amount," she adds.
Eglė, another citizen of Vilnius, says that although she had saved her first contribution with her girlfriend, she still decided to use the leasing service and did not regret her decision. Although the apartment was chosen in a different project, the apartment could also be purchased on the first floor. The girl adds that she has already been offered in the second and third. She says the two-year lease agreement was around two hundred euros a month (about 80 m2 per apartment) until the loan and the apartment were finally purchased.
"We were satisfied with the first-floor variant. It was only at that time that either the consultants did not have the time or the service customers were not very interested in raising the handset by only a fifth. Communication with customers is There were difficulties in planning the layout of sockets We sent our version, but with the contract we brought another plan But we said it was not our option and everything was solved But they are all trivia .
Allowed to purchase a parking space for the car. The brother is now buying an apartment with this service and has also made it possible to buy a car straight away. He also introduced a joint project, pointed out that another building would be built in the future and would close the picture, "says Egle.
In her story, the project developers also bought the installation services and all the furniture and after a few years she did not leave the house. The quality of the girl remained satisfied, so in the future, if needed, you would use this service again. It ensures that no problems have arisen with the banks.
"If you are afraid that you will be unemployed after 2 years, solve these problems now, not within 2 years. (…) So & # 39; n service is not a bad option. Don't be afraid. When we got it bought it, it was the first apartment and we couldn't imagine how we would like it. Now we would know that you don't like the built-in fridge, some shades of cupboards. It would be like that if we didn't buy it just because we could choose the interior differently, "says Vilnius.
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