Rent-to-Own Service as an Alternative for Home Buyers in Chaotic Times

An interesting time has arrived for the real estate market: on one hand, home buyers are pleased with the decline in property prices, on the other hand, euribor is on the rise and banks are tightening their lending. People planning to buy a home are seeking alternative solutions to move into their own home before they have fully saved the down payment for a bank loan.

Real estate company Numai, which offers a "rent to own" service, has observed that people looking for family homes are currently in a somewhat more difficult situation, as their need for larger living space is hindered by high interest rates, greater loan burdens, and banks' caution.

Still, the buyer is in a rather favorable position: the selection is wide, there is no need to rush when choosing a home, prices can be negotiated relatively successfully with the seller, and thanks to the "rent to own" service, there is no need to necessarily postpone the home purchase decision or spend years in rented space where one thing, another, and a third are not allowed, and where a sense of home does not develop.

Rental prices have indeed come back down to earth, but families looking for homes face quite different problems here. For example, the condition of the offered apartments leaves much to be desired, there is a refusal to rent to families with small children or pets, and against the backdrop of sharply increased utility bills, the motivation to save money to purchase one's own home is significantly hampered.

There continues to be a vague understanding in the market regarding future prospects: how will real estate prices change over time, what requirements will apply to the buyer's financial situation in the future, how to better plan one's finances, etc. For many, this does not provide sufficient clarity to properly plan a home purchase.

Numai's "rent to own" home purchase plan is certainly helpful here. With us, the buyer selects suitable living space, Numai purchases it, then by renting the living space to the client, who can move into the chosen new home immediately, furnish it according to their taste, and initially pay rent to Numai while saving money to purchase the home or for a bank loan down payment. This way, the buyer knows exactly at what price they will purchase their property in the future and what steps they need to take to successfully move toward owning their desired home.

Numai, bringing novelty and innovation to the market, makes the path to homeownership clearer, more convenient, and often faster. For example, at the beginning of this year, Numai concluded its first purchase and sale agreement with a client, and immediately the company's first rental client became the owner of their home. From rental client status to homeowner status, the client reached in just six months!

The experience of Numai's parent company in Lithuania shows that the rental contract length for the "Rent to own" service averages 2.5 to 3 years, and typically during this period the buyer has resolved their financial matters and becomes the full owner of their home. Statistics show that it takes Numai clients two years less time to accumulate the necessary down payment than it takes people who make a home purchase in the traditional way, who rent someone else's living space and save in parallel.

Thus, the "rent to own" service has several advantages: you don't have to move multiple times but can move in immediately when the transaction takes place and the keys are handed over, and begin to furnish it according to your taste. This opens the opportunity to feel like a homeowner from the very beginning, which you certainly cannot feel when renting someone else's home in the traditional way. Additionally, you don't have to worry that while you are sorting out your financial matters, someone else will become the owner of the living space you found and grew to love and you'll have to start viewing new properties again. Numai's service can also be used to purchase a home in new developments.

Article author: Numai Estonia