Developers finding new ways to market their developments: Rent to Buy

Firstly I hope that this is in the right section.

I was reading a newspaper(cant remember which one) and it had an article about one developer (Roche Group) who was giving new incentives to sell his developments. He rents the house to the customer for twelve months to see if they like it and if they do a percentage of the rent paid is subtracted from the selling price.

I wish to incorporate a piece in my dissertation about a number of different developers giving similar incentives. If anyone has any experience or knowledge of developers incentives I would be very grateful if you could post a link or short pice here.
Thanks

Re: Developers finding new ways to market their developments

why not get the sunday papers (or appropriate weekday ones) and check the property supplements - they're sure to have details.

Re: Developers finding new ways to market their developments

Its called rent with an option to buy. This method has been around a very long time in the US and is very effective. My Father sold a house this way many years ago.
This is great news in my opinion and shows there is plenty of wiggle room in this downturn economy for people to be creative.

OP - can you most a linky if you find any?

Re: Developers finding new ways to market their developments

@rmelly - i have been doing this, that is where i saw the rent to buy, I was hoping that people who have read similar stories be it givng a free car with the house ( which I have also heard) or doing other things that they post them up here to make it a little easier for me.

@yankinlk - its a Limerick based group called Roche Group - here is the link -
[broken link removed]

Any other info anyone?

Re: Developers finding new ways to market their developments

If you look at foreign properties, in Dubai at the moment they are giving away BMW's and Bentleys with apartments and when you buy you are also entered into a draw for a private jet!

Re: Developers finding new ways to market their developments

So you're effectively rolling the cost of the BMW into your mortgage and paying for it over 20 years +. I'd rather just have the house reduced.

Re: Developers finding new ways to market their developments

Which leads to the question, if you receive a free car/kitchen/holiday/boat/mooring when you purchase a house is this subject to gift tax?

Re: Developers finding new ways to market their developments

There was an article in the Examiner on Saturday about a developer who will take your old house as a trade-in against the new one.

Link here: [broken link removed]

Re: Developers finding new ways to market their developments

So you're effectively rolling the cost of the BMW into your mortgage and paying for it over 20 years +. I'd rather just have the house reduced.

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It think thats what most people do in this development, but the price of these cars doesn't quite reflect their market price here so savings aren't as great as they sound.

Re: Developers finding new ways to market their developments

Thanks Mel for the link thats exactly what im looking for, anyone got anything else?

Re: Developers finding new ways to market their developments

Try & buy, thats been going on in NZ for years, it's not such a bad idea.

Joejoe

Re: Developers finding new ways to market their developments

Its fantastic, it shows Irish developers are using innovative ideas to sell their products, any more examples people?

Re: Developers finding new ways to market their developments

The deveoper of a scheme in Milltown (I think - heard on radio advert) is offering 4% interest on deposit. Have also heard of vouchers of up to €22k for a development in Swords.

Re: Developers finding new ways to market their developments

Michael Lavelle Auctioneer in Dundalk has been offering 'a deal' buy a house and get your mortgage paid for a year on a particular development that has not been selling (College Heights).

Mary Wilson interviewed his daughter on RTE 1 drive time about this offer and she took the gloss off with her sweet sharp tongue

She basically asked Ms. L why don't u simply reduce the price by the amount that u r offering in the deal and make it more attractive to the buyer! Ms. L was unable to keep pace with her questions and this opportunity to impress with some murketin was dismantled....

When I bought my last house the auctioneer made much of the €1000 voucher for a tv / whites / tiles... I however seen this as a curse as I would be paying this €1000 back over the next 25 years and would have prefered the 1000 off and got a loan in a credit union if I was stuck for a TV....

Re: Developers finding new ways to market their developments

I heard of obe developer last year who was offering to pay your mortgage for the first year ... don't know the exact details....

Re: Developers finding new ways to market their developments

Vouchers/ cash back etc can cause other oproblems too. As a valuer we are obliged to mention any special offers/cash back on a valuation and the bank will take this off the purchase price of the house and only lend against this amount.

Re: Developers finding new ways to market their developments

Camry said:

Alternatively, it shows how gullible some consumers are, or how detached from reality some developers are.

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Well it makes a change from what they were doing in my locality for the last number of years, which was buy it if you want if you dont theres plenty in the queue behind you to buy it

Re: Developers finding new ways to market their developments

Lobby said:

As a valuer we are obliged to mention any special offers/cash back on a valuation and the bank will take this off the purchase price of the house and only lend against this amount.

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Absolutely right too. Inflating the mortgage valuation of a house is out and out fraud against the bank.

The loan is secured on the value of the underlying asset, not a load of makey uppey developer concocted 'incentives'.

Re: Developers finding new ways to market their developments

Cant see how its not different, obviously Im only speaking about my experience in my area but dvelopers and auctioneers have become quite attentative lately compared to the "not really fussed" attitude of years gone by. Soem of them really thought they were gods going around the place so its nice to see sweat a little bit now.

Re: Developers finding new ways to market their developments

Having a wee bit of bother opening the link that was posted on a previous post on thhe thread, any ideas?

[broken link removed]