The effects of leasing real estate for individuals
Ktimatoemporiki Real Estate - 2022-01-28
The effects of leasing real estate for individuals / The effects of buying real estate for individuals through leasing
Significant real estate market stimulation, as well as a de-escalation of rental prices that have hit record highs, is likely to encourage individuals to purchase real estate through leasing.
The financial leasing of movable and immovable property to firms, freelancers, and individuals has been extended thanks to a recent government modification to the new Development Law.
Until now, you could lease moveable assets like a car from individuals, but not real estate, because the the law restricted its use only for commercial use.
Ordinary people will now be able to lease real estate, such as housing, as a result of the legislation. Simultaneously, it enables the purchase and re-leasing of real estate, causing dramatic shifts in home sale and rental prices.
According to real estate market executives, leasing - financial leasing as an alternative form of financing for private homes opens the door, among other things, to the acquisition of real estate by individuals who were previously
unable to enter the housing market because they lack the 20% -30% of the property's value required to obtain a mortgage.
With the new data, the pre-agreed transfer price of the property at the expiration of the lease might be 20% to 30% of the same participation (needed to acquire a mortgage).
At the same time, depending on the lease's operating data, the lessee can choose to pay a higher monthly rent to cover the same 20% -30% of the property's worth that he does not now have during the lease, but will be required to pay at the lease's end.
In addition, unlike the granting of mortgages, the bank retains ownership of the property throughout the term of the lease.
At the same time, the buyer is not charged with tax or real estate transfer charges when leasing, but only at the end of the lease.
If the tenant does not pay the monthly rent - or does not comply with the lease agreement - he automatically loses his right to expect ownership of the property, whereas the bank has fewer expenses because the lease agreement will be terminated without auctions and at no cost to the tenant.
Significant real estate market stimulation, as well as a de-escalation of rental prices that have hit record highs, is likely to encourage individuals to purchase real estate through leasing.
The financial leasing of movable and immovable property to firms, freelancers, and individuals has been extended thanks to a recent government modification to the new Development Law.
Until now, you could lease moveable assets like a car from individuals, but not real estate, because the the law restricted its use only for commercial use.
Ordinary people will now be able to lease real estate, such as housing, as a result of the legislation. Simultaneously, it enables the purchase and re-leasing of real estate, causing dramatic shifts in home sale and rental prices.
According to real estate market executives, leasing - financial leasing as an alternative form of financing for private homes opens the door, among other things, to the acquisition of real estate by individuals who were previously
unable to enter the housing market because they lack the 20% -30% of the property's value required to obtain a mortgage.
With the new data, the pre-agreed transfer price of the property at the expiration of the lease might be 20% to 30% of the same participation (needed to acquire a mortgage).
At the same time, depending on the lease's operating data, the lessee can choose to pay a higher monthly rent to cover the same 20% -30% of the property's worth that he does not now have during the lease, but will be required to pay at the lease's end.
In addition, unlike the granting of mortgages, the bank retains ownership of the property throughout the term of the lease.
At the same time, the buyer is not charged with tax or real estate transfer charges when leasing, but only at the end of the lease.
If the tenant does not pay the monthly rent - or does not comply with the lease agreement - he automatically loses his right to expect ownership of the property, whereas the bank has fewer expenses because the lease agreement will be terminated without auctions and at no cost to the tenant.
