The house as the car. From 1 January 2016, real estate leasing is in force. Introduced by the latest Law of Stability, this tool is intended for the purchase of the first home. All those who are not already owners of a property and who, if they are less than 35 years old, can count on an annual income of less than 55 thousand euros can take advantage of real estate leasing. Let’s try to understand what it is.
This procedure provides for the payment of an advance
In real estate leasing it is the provider (bank or financial intermediary) who buys the property and grants the lease to the future owner. This procedure provides for the payment of an advance amounting to 15-20% of the total amount of the property and the subsequent stipulation of a rental contract. The customer will then pay the agreed fee each month until a maximum final installment is paid, which will bridge the gap between the amount already paid and the starting price of the property. Once all is paid, the customer will become the homeowner for all purposes.
Real estate leasing is even more attractive
In the case of young couples (at least one of the two must not be older than 35) real estate leasing is even more attractive as tax reductions allow the deduction of 19% of rent paid and ancillary charges (l ‘maximum amount on which to determine the deduction is 8 thousand euros). In addition, they can also deduct 19% on the maxi final installment (in this case the maximum limit is 20 thousand euros).
There are also other facilities for those over 35 but the values are halved.
Higher percentage than mortgage rates
And so far we’ve seen the advantages. But there are also some disadvantages. First of all, the interest rates applied: on average, it is around 3%, therefore a higher percentage than mortgage rates. Moreover, a not negligible aspect, the house remains the property of the provider until the last installment is paid, which is not the case in the case of the traditional mortgage. Finally, real estate leasing can have a maximum duration of 20-25 years, against 30-35 of the loan; consequently the installment will be higher in the first case.