Homely for Entrepreneurs
For entrepreneurs, gig-economy and self-employed workers looking to get on the property ladder, traditional routes to homeownership may not always be available. Irish banks have strict lending criteria focused on PAYE income or evidence of strong business profits extending over several years. Even if you manage to save up a substantial deposit, other financial hurdles can impede your progress.
Homely’s model could be a valuable and flexible solution, offering business owners, entrepreneurs and sole traders the opportunity to transition into homeownership.
Let’s jump into the benefits of the rent-to-own model for these individuals, providing a pathway to owning a home when banks are less accommodating.
Lower Initial Costs
A key advantage of the rent-to-own model is its lower barrier to entry. Traditional mortgages often require substantial deposits exceeding 10%, making homeownership seem unattainable for many entrepreneurs. Homely’s rent-to-own arrangement, allows you to enter our structured programme with usually a more manageable upfront payment, typically ranging from 2% to 4% of the initial property purchase price. This is particularly beneficial for business owners who may need to allocate their financial resources to get their idea off the ground and take low salary for a period, all while simultaneously progressing towards homeownership.
Rent-to-own agreements are generally known for their ability to be personalised to suit each customer.
Personalised Terms
Homely agreements can be tailored for individual financial situations, aligning with the fluctuating stages of customers’ lives and income profiles. This adaptability allows you to make monthly payments that accommodate your budget while maintaining the flexibility to adjust the terms as your financial circumstances evolve. In simple terms, Homely will look at how the level of your initial up-front payment impacts your monthly payments to us, and vice versa, and we will find a solution that works for you.
Better Value
One of the most significant advantages of the rent-to-own model is that once committed, you have a legal right to purchase the property from Homely in the future, at potentially far more favourable terms than if you just waited, rented, and saved. Whilst renting from us over a three or five-year term, an amount equivalent to up to 20% of your monthly payments could be offset against your future purchase price of the property. This serves as a serious incentive for you to be able to benefit from the future value growth, giving you a financial head start when it comes time to buy the home. This ‘discount’ (as we call it) can then act as a de facto deposit when applying for a traditional mortgage and is a very practical way to bridge the gap between renting and homeownership.
Whilst renting from us over your three or five-year term, an amount equivalent to up to 20% of your monthly payments could be offset against your future purchase price of the property.
Credit Improvement
Even entrepreneurs who may have faced credit challenges in the past can use their time with Homely as a means of passively improving their creditworthiness. In Ireland, your credit history (or ‘payment performance information’) is stored on the Central Credit Register for a maximum of five years.
Consistent and timely payments over long periods help hugely when a traditional mortgage lender comes to assess your monthly repayment capacity. Paying your Homely payments on time and monthly for over three years could enhance your credit profile in the eyes of your bank, and allow you to be in a better position when looking for a mortgage. This improvement can even be a stepping stone toward securing a mortgage, potentially even at more favourable lending terms.
Homeownership is often regarded as a symbol of stability. Entrepreneurs can appreciate the security that comes with homeownership.
Stability and Homeownership Aspiration
Homeownership is often regarded as a symbol of stability and good long-term planning. Entrepreneurs, who inherently must take risks in their business ventures, can appreciate the security that comes with homeownership. Achieving this aspiration can instil a sense of accomplishment and stability, ultimately enhancing overall well-being. At a time when founders face the myriad stresses of starting and growing a business, the prospect of being evicted from their rental property or having to live far away from HQ can have serious ramifications on the business trajectory. Our ambition is to alleviate some of that stress for business leaders as they focus on their entrepreneurial mission.
Modifications and Improvements
Rentals are often drab and boring. Rent-to-own homes often provide an opportunity for personalisation. You can gradually transform the property to align with your personality, knowing that your input will ultimately benefit you as a future homeowner.
Within your Homely tenancy agreement, a section specifically sets out your right to personalise your property, empowering you to make it your own without unnecessary hurdles.
This level of control over your living space can be particularly appealing to new families and those buying their forever home. Within your Homely tenancy agreement, a section specifically sets out your right to personalise your property, empowering you to make it your own without unnecessary hurdles. Whilst this of course has some limitations, our role is to empower you to make the property your home, so we don’t stand in the way of you making it more homely.
For budding entrepreneurs or seasoned business owners who may not find traditional mortgage options readily available, our rent-to-own homeownership model presents a genuine solution. It offers accessibility, flexibility, and a pathway to ownership while building a positive credit history. With potential lower initial costs, the ability to personalise the property, and the assurance of stability over a fixed period, rent-to-own can be the ideal approach for achieving homeownership and turning your entrepreneurial dreams into a reality, all while maintaining the financial flexibility to support your business ventures.
Ready to embark on your journey to homeownership with Homely? Take the first step today by booking a chat with a member of our team. We’re here to guide you through the process and help you achieve your homeownership goals. Don’t let traditional barriers hold you back – seize the opportunity with Homely and turn your entrepreneurial dreams into a reality.
