How Rent-to-Own works
Select your dream home. Homely will buy it and rent it to you for between three and five years. You can then buy it from us - it’s that simple.
Let's run the numbers for you
Rethinking the traditional home ownership model - how rent-to-own works in terms of costs and discounts. Use our calculator to learn more about how our monthly payments work!
Home Price
Initial Payment
€0You pay just 2.5% of the purchase price (minimum €10k) and Homely buys the property.
Monthly Payment
€0 Per Month20% of your total monthly payments will be discounted against the market value of the property at the end of your programme term. In this example it's about €0 each month. Your monthly payments will increase marginally each year.
| Buy | ||
|---|---|---|
| Year 3 | Year 5 | |
| Potential Market Value* | €0 | €0 |
| Monthly Payment Discount | €0 | €0 |
| Market Value Discount | €0 | €0 |
| Your Purchase Price | €0 | €0 |
At the end of a 3 or 5 year tenancy period, you'll be ready to purchase your property at a discount to its then market value.
*Based on a sample 3.5% property value increase annually.
The above is an example of how rent-to-own works for illustrative purposes only. All monthly payments, base costs, and discounts will be agreed between Homely and each customer at the outset but will be strictly dependent on your personal circumstances, property type, and location.
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Your Purchase Price Discounts
Reap the rewards
Homely provides clarity and stability for you to build your own personal savings pot through your tenancy period. If you wonder how rent-to-own works from discount perspective, when you purchase the home at the end of the lease period, we’ll give you two discounts against the market value at that time:
- You’ll receive a discount equivalent to 20% of the monthly payments you have made over the tenancy period.
- You’ll receive a discount equivalent to approximately 20% of the difference between your home’s market value* at the time you buy it (assuming the market value has increased) and Homely’s original purchase costs and expenses (which are determined and provided to you at the outset).
*If at the end of your tenancy agreement, the market value is lower than Homely’s original purchase costs and expenses, you’ll have a few options.
- You can cover the cost difference yourself and purchase the home.
- You can request a lease extension of up to 24 months. This will allow you to continue to save or wait for the market value to increase.
- You can also choose to hand us back the keys and leave the property.
Costs
- It’s completely free to apply and seek approval from Homely. Once you find your preferred home with us, you’ll be required to pay an initial option fee equivalent to 2.5% of the purchase price upfront, with a minimum of €10,000.
- Homely covers all acquisition costs, excluding any fees associated with your legal review of our tenancy and option agreement. We won’t proceed with any application until you provide evidence of having received independent legal advice.
- Your tenancy agreement adheres to market standards and is registered with the Residential Tenancy Board (RTB). In instances where the property is located in a Rent Pressure Zone, we factor that in from the outset, ensuring clarity and understanding of every aspect of your Homely agreement.
- Separate from tenancy payments, you’ll also make monthly option payments throughout your tenancy. Should you choose to discontinue these payments at any time, you’ll forfeit your right to buy the home at the end of the period. However, you’ll retain all tenancy rights as outlined in your agreement.
- You’re responsible for covering your closing costs and stamp duty when you purchase the property from Homely at the end of the rental period.
And remember, if and when you decide to purchase the house at the end of the lease, you’ll receive two discounts on the purchase price.
FAQ
Questions & Answers
Change your mind?
We understand that sometimes life doesn’t work out as expected. If for any reason you decide not to purchase the home at the end of the tenancy period, you can simply hand us back the keys. As long as you have paid all outstanding tenancy payments and there is no damage or repairs needed, you will not have any further liability or obligation to us.