Looking to purchase a home but facing challenges securing financing from a bank? Uncertain about committing to a purchase without knowing if it’s the right timing?
Enter the Italian law’s solution: the “Rent to Buy” scheme, also known as “affitto con riscatto”. This initiative allows you to take immediate possession of your desired property, allowing you to test it out before making a final purchasing decision.
Here’s how it works: You’ll provide a down payment, typically around 10% of the property’s price, and this, along with the rent you pay, will be deducted from the property’s price if you choose to exercise the purchase option at the end of the agreed-upon rental period, which typically spans from 3 to 10 years.
To get started, you’ll need to search for properties available under the Rent to Buy scheme. Upon finding a suitable property, you’ll make the initial down payment, granting you immediate possession of the home. This initial payment also locks in the final purchase price of the property based on its current value. Subsequently, you’ll begin paying a monthly rent, which may be slightly higher than market rates.
At the end of the rental period, you have two options: You can either opt to relinquish possession of the property and move out, or you can proceed with purchasing it at the pre-agreed price. The amount you initially paid as a deposit, as well as all rent payments made, will be fully credited toward the property’s sale price. Additionally, you may have the opportunity to negotiate a discount if you decide to purchase before the rental period concludes.
It’s important to note that the availability of properties under the Rent to Buy scheme is limited, primarily to suburban and rural areas. Properties in highly desirable locations are unlikely to be offered under this scheme, as owners typically have no difficulty selling them outright for cash.
Who pays the IMU in the case of rent to buy?
As in any rental agreement, the IMU (property tax) and all taxes related to the property ownership are the responsibility of the seller, who remains the owner until the eventual sale.
The Rent to Buy scheme provides a flexible and accessible option for individuals seeking to buy a home in Italy, offering the chance to test out a property before committing to a purchase. However, it’s essential to thoroughly research available properties and consider all factors before proceeding in this way.
