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Morgage Vs Tenant Purchase
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Nobby
#1 Posted : Wednesday, December 21, 2011 12:04:45 PM
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Joined: 2/8/2007
Posts: 625
Location: Nairobi


What are the pros and cons of the above and which one is better?
The future belongs to those who believe in the beauty of their dreams.
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Impunity
#2 Posted : Wednesday, December 21, 2011 2:44:55 PM
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Joined: 3/2/2009
Posts: 26,328
Location: Masada
Nobby wrote:


What are the pros and cons of the above and which one is better?


What is this Tenant purchase?
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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freiks
#3 Posted : Wednesday, December 21, 2011 3:58:04 PM
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Joined: 6/8/2010
Posts: 1,729
If you ever get a chance for tenant purchase go for it.
Its the most sure way of owning a home. A friend of mine got one with NHC and whatever he had paid before occupying the house was interest free. Imagine u get an apartment for 5M and you manage to pay 3M interest free before occupation, then the rest you can pay in the next 18 years.....this is a real deal
Life is an endless adventure
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Gordon Gekko
#4 Posted : Wednesday, December 21, 2011 4:07:30 PM
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Joined: 5/27/2008
Posts: 3,760
The two products are similar in that at the end of the process you own a house/apartment.

The differences are:

TPS have a less rigid qualification criteria than mortgage, hence easier to qualify for ie. TPS have no downpayment, you usually just pay two/three months rent upfront.

TPS interest rates tend to be lower and constant for the life of the scheme.

TPS is like a rental payment, and that's where the risk is - if you default, your contributions are treated as rent and you just walk away. With mortgages you build up equity through the repayments and when you are unable to service, you can sell the house and get some stash back.
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Nobby
#5 Posted : Thursday, December 22, 2011 11:30:08 AM
Rank: Member


Joined: 2/8/2007
Posts: 625
Location: Nairobi
Gordon Gekko wrote:
The two products are similar in that at the end of the process you own a house/apartment.

The differences are:

TPS have a less rigid qualification criteria than mortgage, hence easier to qualify for ie. TPS have no downpayment, you usually just pay two/three months rent upfront.

TPS interest rates tend to be lower and constant for the life of the scheme.

TPS is like a rental payment, and that's where the risk is - if you default, your contributions are treated as rent and you just walk away. With mortgages you build up equity through the repayments and when you are unable to service, you can sell the house and get some stash back.



When does ownership change hands in both cases?
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