Structuring a Rent-to-Buy Deal

Rent credits, purchase price and returns for both sides

A rent-to-buy deal rests on figures set at the start that are hard to change later: the rent the buyer pays and how much of it is credited towards their purchase, the purchase price agreed now for a sale years away, and the returns those figures produce for both sides. This book teaches you to set them fairly and soundly. It explains the handful of numbers that decide a deal and how they pull against each other, and where to find reliable local data for free so the forward price and rent are not set on optimism. You will learn why counting income that is not really yours to keep is the commonest way to lose money, and the costs unique to rent-to-buy on top of ordinary rental costs. The deal is stress-tested for a bad month, a void and a rate rise, and an honest worked example brings everything together. It ends with building your own calculator and the legal questions it cannot answer. Next in this series: “Regulation, Consumer Credit and Fairness”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress-testing for the bad month, the void, the rate rise
• A complete worked example, start to finish
• Your deal calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.