How to buy a house without a mortgage

How to buy a house without a mortgage

Having your own home is the dream of everyone. Houses, in fact, have always been the safest type of investment to be realized, although in recent years there has been a gradual decline in sales and, therefore, to a decline in the housing market. This factor is due to the impossibility of a mortgage, where there are many people who are unfortunately deprived of the guarantees required for obtaining this form of financing. Not everyone, however, knows that the fact that he can not get a loan does not mean having to give up the dream of a house. It is possible, in fact, along the alternative routes. Let’s see, therefore, how to buy a house without a mortgage, taking into account the two most commonly used formulas and seeing them in detail, the sale with reservation of ownership and the rental with purchase option.

There is a way

There is a way

Let’s start by saying that even if you take advantage of an alternative to the one that includes the lighting of a mortgage, these formulas are regulated with legal valid contracts in all respects. So if you have actually decided to purchase, there are no particular surprises for those who neither sells nor for those who buy.

The sale of property that is subject to the formula that is more preffered is when it comes to buying a house without resorting to the getting of a mortgage. The one who makes the purchase shall be immediately at home with the legal promise to pay the house itself through the payment of monthly dues. It seem like how, in practice, you would pay the rent. Anyone who buys it does not become the owner until he has finished paying all the installments provided. In the event that he does not comply with the agreements, the seller returns the amount paid with the exception of a sum received as if the house had been rented and a further sum for compensation for damage suffered due to lack of sales. This is a good solution. The only drawback, for those who buy, is that all the costs are solely dependent on him.

With the other option you have, you may continue to pay the rent as if you were a regular tenant, with the only variant being that you have the exclusive right to buy the house after a certain period of time at a set price. All of this is governed by two contracts: one for the rent itself and one for the option to purchase. The monthly fees paid shall be deducted from the final price of the property and expenses, in this case, are the responsibility of the owner.

About Nikos Kontorigas

Leave a reply translated

Your email address will not be published. Required fields are marked *