Alternatives to hire purchase

When you would like to buy a home or other real estate but lack sufficient financial resources, it can seem like a daunting challenge. Lease-purchase is an option often considered in such situations. At hire purchase an agreement is made where the buyer rents the property with the option to buy it later. However, there are also alternatives to lease-purchase. Below, we discuss some of these options:

1. Lease option: This is similar to lease-purchase, but with some nuances. In a lease option, a buyer rents the property for a certain period of time with the option (but not the obligation) to buy it later on predetermined terms.
2. Leasehold: In this, the land remains in the ownership of the original owner, while the superstructure (the building) is bought. The buyer then pays a periodic fee for the use of the land.
3. Collective private commissioning (CPO): This is a form of cooperation in which future residents are joint principals for their own housing project. By joining forces (and resources), more can often be achieved than alone.
4. Property sharing: In this, you buy part of the property and rent the remaining part. Over time, you can 'buy' more of the property, thereby increasing your ownership percentage. Immotokens offers this sharing of ownership with outside investors.
5. Family mortgage: In some cases, family members are willing to provide a mortgage. This can often involve flexible interest and repayment arrangements.
6. Crowdfunding: Although less traditional, some people use crowdfunding platforms to raise money to buy a home. Of course, there are risks involved in borrowing large sums of money from the public.
7. Anti-squatting living: While not a direct alternative to buying, anti-squatting can be a temporary, low-cost housing solution. In this, you occupy empty premises to prevent vandalism and squatting. This gives you more time and space to save up for a home of your own.
8. Starter loan: In some municipalities, it is possible to get a start-up loan. This is an additional loan on top of the regular mortgage that can be used to bridge the difference between the price of the house and the maximum amount you can borrow.

Rent-buying or sharing property with investors remain one of the most interesting options. Find out how Immotokens can help you buy your property. Are you looking for an interesting investment? Read more about investing in lease purchases.