Rent first, then buy: For whom this living model is worthwhile

“We would do it the same way again,” they say. “The rental purchase was the ideal solution for us. We were able to live in the property for several years and make sure that it really suited us before we made the final purchase Purchase decision have met.”

In fact, the road to property is a rocky one for many today. Height own fundsstrict lending even after the expiry of the KIM regulation and a challenging interest rate situation often postpone major decisions until the future. Rent-to-own is now becoming more of a focus again. “Most recently, around 28 percent of the newly completed apartments of non-profit building associations (GBV) were models Purchase option“says Lorenz Sigl, Head of Infina Real Estate.

Not as a quick shortcut, but as a clever intermediate step. Rent first, then decide. “The non-profit rental apartment with a purchase option is an established part of ownership in the Austrian housing market,” says Sigl. “Especially in the current market environment, it remains a relevant route to ownership because it enables entry gradually.” That means: no immediate loan, no final decision under pressure. Instead, a phase in which you arrive, check, calculate – and ideally build up equity at the same time.

That’s exactly what makes it so appealing, but at the same time it causes misunderstandings. The widespread idea that you pay rent over the years and thereby automatically “pay off” part of the purchase price is persistent. In reality, the model is much more sober. In Austria it is usually not a classic one Purchase on installmentsbut rather a rental apartment with the option to buy.

The current rent remains Usage fee and does not, as with leasing, already cover part of the purchase price. “It is crucial to take a close look at the specific design,” says Karina SchunkerManaging Director of EHL Wohnen. “Purchase price, calculation and terms can vary greatly. The purchase price can either be fixed at the start of the rental or set later.” If it is calculated based on the so-called intrinsic value, it is often below the market price. “These different designs make the model variable, which is why interested parties should find out more about the individual variants,” advises Schunker.

Manuel Tauber, 35, and his wife completed their new 100m last year²-Apartment in Kaltenleutwegen Lower Austria related – and are happy here. They can purchase the property in four years. “We plan to do that too,” says Tauber. “We wanted to look into property, but we couldn’t afford it yet. We can save until 2030.” The Purchase price was already contractually agreed upon and the couple paid a ten percent down payment. “If we decide against the ownership option or move out again, we will get the majority of the deposit back.”

The advantage is that most rent-to-own properties come from the subsidized housing and can therefore be transferred on more favorable terms than freely financed properties. “It usually starts with something Financial contribution“, often in the range of ten to fifteen percent of the purchase price,” explains Schunker. This is followed by the rental phase: five, ten or fifteen years are common. Only then can the purchase option be exercised, often within clearly defined time windows. It is precisely this variety that makes the model exciting – and at the same time demanding. Because rental purchase is not a standardized product, but a construct with many adjusting screws. Purchase price fixed or open, rent with or without credit, indexation and option periods.

Check advantages and disadvantages

“In the Austrian Civil law “Rental purchase is not standardized as an independent contract type,” says Peter Lazar, CEO of Vienna Estate Immobilien AG, to consider. “Rather, it is a mixed legal transaction that cannot be assigned to a single legal contract type – purchase or rental agreement – ​​but rather contains both provisions under existing law and under purchase contract law.” The advantages are still obvious: you can experience the property in everyday life instead of just visiting it selectively. You gain time to catch up financially. And you postpone the big decision until a phase of life that is often more stable than the first Real estate desire at a young age.

Nevertheless, it must be clear: “A rent-to-own model cannot be an escape from a credit check,” emphasizes Peter Lazar. “The economic viability must be ensured, otherwise the model becomes an incalculable danger for everyone involved.” In other words: Even if the purchase comes later, it must be realistic from the start. There are also other points that are often underestimated: the current rent is often higher than for comparable properties without a purchase option. The initial personal contribution (financing contribution) ties up capital. And if the purchase price is not fixed, there remains uncertainty that only disappears years later.

A look at alternative models shows that the market is constantly evolving. At the “Step purchase” For example, attempts are being made to defuse the central weaknesses of classic rental purchase. “The monthly net rent becomes direct Redemption used and the purchase price is fixed from the start,” explaint Pascal Kohlhauptmanaging director of the private housing developer RIVA home. If the value of the property increases in the meantime, there is a financial advantage for buyers.

“This delta between Market value and agreed purchase price is the decisive lever,” says Kohlhaupt. At the same time, ownership is not just lived in, but property is gradually built up. After around ten years, a noticeable part of the property is financing removed. The model is intended for those who fall through the cracks in the current system: too little equity to buy immediately, but too high an income for subsidized apartments. “Many people are stuck in the hamster wheel of rent and come with it Equity capital Hardly any progress,” says Kohlhaupt. However, this model doesn’t work without rules. You legally remain a tenant during the term, the purchase option is tied, passing on or renting is restricted. – Susanna Pikhart

Things to check before renting

• Is the purchase price fixed? If the price is already in the contract, this creates planning security. If it is open, it is only determined years later – often based on market value, which can be significantly more expensive.
• Is the rent counted towards the purchase price – or not?
  In Austria, the current rent is usually not counted towards the purchase price. Anyone who buys later will pay the purchase price in addition to the rent they have already paid.
• How much is the advance payment? The financing contribution is often 10 to 15 percent of the purchase price and is due upon moving in. This capital is tied up and will only be refunded at a reduced rate if the purchase is not made. When can the purchase option be used? The opportunity to purchase usually only exists after several years and only within certain time frames. Anyone who misses this may lose their right to option.
• Are there indexations or price adjustments? Both the rent and the purchase price can be secured in value. This has a significant impact on the actual total costs for buyers and should be examined carefully.
• Can you resell the apartment you have already purchased? When reselling a subsidized rent-to-own apartment, the statutory speculation period of 15 years must be observed.