Rent with redemption – rent to buy

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To date, one of the simplest methods to buy a house without a mortgage seems to be that of rent to buy . The name is quite explanatory: a clause is inserted in the rental contract which specifies the possibility for the tenant to purchase the property in the future , thus putting the rental installments “to good use”. At the end of the lease you can then proceed with the classic sale – a mandatory step if you decide to opt for the rental with automatic redemption– which of course will take into account the monthly fees already paid. Also in this case the rent will be a little more expensive than normal, because it includes a small extra fee which is considered as a down payment on the future purchase, but it is a rather small percentage which, in general, does not exceed the 10%

Deductions for under 36s

A separate paragraph should be dedicated to young people under the age of 36 , to whom the government has dedicated a series of measures to help them achieve independence and buy the coveted first home. The first facilitation concerns the First Home Mortgage Guarantee Fund , an innovative instrument through which the State acts as guarantor for young people who apply for a mortgage for an amount exceeding 80% of the purchase value. This fund can be accessed until 31 December 2022 by young people under the age of 36 who have an Isee – the parameter used to assess the economic situation of a family unit – of less than 40,000 euros.

Furthermore, young people who intend to buy a house can have further deductions and benefits such as:

The exemption from the registration tax on the deed of sale

The exemption from mortgage and cadastral taxes

If VAT were due, they would enjoy a tax credit of the same amount

The exemption from the substitute tax on the mortgage, which corresponds to 0.25% of the total amount.

Buying a house without a mortgage and paying it immediately: is it worth it in 2023?

We talked about how to buy a house without a mortgage assuming that the potential buyer hasn’t met the bank’s requirements and doesn’t have enough capital to pay it off right away, but that’s not the only possible scenario.

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