Good deal?



New Member
My wife and I are moving back to Spain. We know the are where we want to live, as we’ve lived there before (It’s in Andalusia). We have been offered a property on a rent-to-buy deal just before, the price of the property has dropped from 260k to 175k, and it is now at 100k. I can't see it depreciating in value any more, so I'm thinking it’s a good deal…

We want this house as it ticks all the boxes for us, so a rent-to-buy deal seems like a very good option. The owner has asked us to make him a proposal, so we're trying to work out all the costs we'll need to be putting away towards our deposit for the mortgage when the rental term is up.

I’m working backwards from the total cost incl legal fees etc, so I can work out how much, and for how long a period,we want to pay rent, and I'm just wondering how far off the mark I am so far. Any advice would be much appreciated.

Purchase price: 100000€

ITP (8%): 8000€

Legal fees (@1%): 1000€

Notary fees (@1%): 1000€

Property registry fees (@1%): 1000€

Subtotal fees: 11000€

Total: 111000€

We were thinking of proposing a rent of 550€/month for 3 years, giving us a 19800€ deduction from the purchase price. This means we need a mortgage for 78,200€. Am I right in thinking we will need 20% of that as a deposit (15640€),or would lenders consider a 10% deposit when the purchase price is quite low? So in total our monthly costs would be 1289€ (550 rent, 434 towards deposit, 305 towards fees).

Are there any other costs I've missed out, apart from living costs, utilities etc? Who normally pays the community fees? Thanks in advance!

We can't afford to pay a large deposit right now, but I'm thinking of increasing the rent instead to make the deal more attractive for the owner. Is this a good idea, do you think? Any other advice regarding rent-to-buy which might help us clinch the deal, would be much appreciated.