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Thread ID: 94072 2008-10-13 01:28:00 Rent to Own a home never-u-mind (6500) PC World Chat
Post ID Timestamp Content User
711929 2008-10-15 21:36:00 I think I'm going to do a bit more digging to find out whats the worst that can happen .

If, for some unforeseen reason, she didn't pay the stipulated weekly amount in the 2 year period before taking a mortgage (eg: he wasn't able to work), what would happen? . . . . . . would they then cancel the contract, meaning she payed $10,000 to live in a very expensive rental, hopefully learning a valuable lesson and move on and not be bound to then purchase the house?

What would happen after the 2 years if the finance place, where and who ever they are, decided not to give her a mortgage? Again a very expensive mistake but one which may not end with hundreds of thousand of dollars in debt??

I wonder what the worst case scenario would be ????? Or do I not want to Know . :(

Yes the economy is very unstable and I agree absolutely that now is not a good time to buy anything let alone a house . Even my son is watching the finance reports with a sense of foreboding .
never-u-mind (6500)
711930 2008-10-15 22:02:00 Yes good idea. This came up on Fair Go a year or 2 ago and people got there fingers seriously burnt and lost heaps of money.
:)
Trev (427)
711931 2008-10-15 23:26:00 This from Consumer Mag.

Our advice
Rent-to-buy schemes are complex agreements, with plenty of downside. You need to get a contract drawn up. You also need to get independent legal advice and make sure you understand the fine print.

Exhaust all other options before entering any sort of rent-to-buy agreement.
Talk to your bank or a mortgage broker about your mortgage options. If your bank can't help, shop around other mainstream lenders. A family member might give you a deposit or an interest-free loan to help you raise the deposit money for a standard mortgage.
If you decide to enter a rent-to-buy agreement, make sure the details are clearly spelled out, in writing. Will you get a refund of your deposit if your mortgage application is declined? How much of it will you get back? Is it clear how much of your payments are "deposit" and how much are "rent"?
Make sure you haven't just signed a regular tenancy agreement. A genuine rent-to-buy agreement will include documents showing the instalment payment schedule, your licence to occupy, and a conditional sale-and-purchase.
Whichever option you choose, seek independent legal advice - don't just rely on advice given by the vendor or their advisers.
Set up a direct debit for payments, so that there is a clear electronic trail of what has been paid and when.
Have your deposit money paid into an independent trust fund if possible.
Clearly stipulate who is responsible for costs which are typically borne by homeowners - such as maintenance and repairs, rates, and (if applicable) body corporate fees.
More help
The Mortgage Insurance Scheme: www.kiwibank.co.nz
Housing New Zealand Corporation: www.hnzc.co.nz
More information on rent-to-buy schemes: from the Commerce Commission and Ministry of Consumer Affairs.
To check whose name is on the title deed: Land Information New Zealand (LINZ) 0800 665 463


:)
Trev (427)
711932 2008-10-16 22:08:00 I will pass on his info and maybe, just maybe its not too late.

Thanks heaps for this, it will help a lot to pass on this type of information as it doesn't seem to be enough that her family and friends say its a very bad idea. :thumbs:
never-u-mind (6500)
711933 2008-10-16 22:11:00 Also, can you ask her if she went through a company? Just so others can be aware that they may be being preyed upon if they come across the same company. ie, name and shame utopian201 (6245)
711934 2008-10-16 22:39:00 Also, can you ask her if she went through a company? Just so others can be aware that they may be being preyed upon if they come across the same company . ie, name and shame


. rent2ownnz . co . nz/Home . aspx" target="_blank">www . rent2ownnz . co . nz


Thats the link for the place she went through . I guess its a good place to start in finding out some information .

I have been dodging the prompts for surrendering their name as I have no idea if they are good or not and didn't want to say bad things about something I know nothing about .

Yet . . . . . .
never-u-mind (6500)
711935 2008-10-17 00:17:00 Rent to Own a homeFrom the few experts I've spoken to you'd be nuts to consider it. Greg (193)
711936 2008-10-17 02:54:00 . rent2ownnz . co . nz/Home . aspx" target="_blank">www . rent2ownnz . co . nz


Thats the link for the place she went through . I guess its a good place to start in finding out some information .

I have been dodging the prompts for surrendering their name as I have no idea if they are good or not and didn't want to say bad things about something I know nothing about .

Yet . . . . . .

ok maybe name and shame was the wrong term . Rather, give us the name so we can investigate and see for ourselves :p

ps Its not Blue Peak wealth management right?
utopian201 (6245)
711937 2008-10-17 09:10:00 Hey Never-u-mind, hate to say it but from the sounds of it there isn't that much you could have done to change your sister's mind. We can sit here as armchair spectators and say what should have been done, but alas too late... it might be worth finding out if there is a get out clause or a cooling off period though. Sick Puppy (6959)
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