So far, there have been two types of leasing purchase on the German real estate market: In the case of the classic model, the lessee undertakes to buy the property at a fixed final installment after a certain period of time. The deposit amount 20% of the purchase price. In the so-called option purchase, the prospective buyer rents the property to the developer and has the option to buy the property at a later date. He is not obliged to buy. Now there is a third model. It was developed by Gerald Evans, CEO of Gecci in Nettlingen near Hildesheim. He calls his product "Rent and buy". Again, a lease is set up - and second on the transfer of ownership of the property after the expiration of the contract period. A deposit before the start of construction is not required. However, if the renter does not pay the monthly fee, Gecci can terminate the contract prematurely. Consequence for the tenant: Contract gone and also the right to transfer of ownership.
Experts know: Hire-purchase is not the cheapest form of mortgage lending - on the contrary - but one that offers the opportunity to come home without equity. There are many providers in German-speaking countries, including the Volksbanken Raiffeisenbanken. On advertising markets such as www.mietkauf-suche.de are also offers. Gerald Evans wants to cheat on them all. He wants to build three model houses in southern Lower Saxony in 2019. He offers his rent to buy customers a massive house according to EnEV or KfW standards including solar panels. Prices start at 147,400 euros (living space: 106 square meters) plus land, planning and ancillary costs. Redemption lease: 23 to 32 years. Other suppliers of such solid houses are Heinz von Heiden, Town & Country House and Kern-Haus. Evans: "None of these competitors but offers the possibility of home purchase by Mietübangebungsmodell." If all is well
he expects that he will have "15 to 20 contracts" at the end of next year.
Evans calculates with annual investments of approx. 2 million euros. The financing is to be made 45% with investor funds. 6.5% per annum he offers the lenders and the repayment of the capital invested after ten years. As security, he offers a rent cancellation insurance, retention of title of the house and land and entry in the land register (Department 3, 1st rank). The contractor and his fifth investor just went to the notary. "The market for such a model is there," is the head of an engineering office in the Black Forest, who wants to be named by name, optimistic. "Since the banks are restrictive in mortgage financing, many people who want to fulfill the dream of owning a house no longer come to the necessary capital. For them, Rent and buy is an alternative. "Gerald Evans makes no secret of his target group:" Families and smaller businesses that want to buy a property, but get no credit from their bank. "Evans is convinced of his concept, wants it first market and later "sell the rights of use to interested companies under a franchise model".
Source: Der Immobilienbrief, NR. 437 I 46. KW I 16.11.2018 I ISSN 1860-6392 I PAGE 30