The emergence of lease-to-purchase transactions is dictated by the understanding of some sellers that under current conditions their property cannot be sold. The logic of the transaction is that the seller, who uses the property for rent, does not freeze money in his property, and the buyer generates profitability from the transaction.
A lease with an option to purchase is a contract in which the buyer wishes to acquire a property for permanent residence, and wants to live and use it immediately, but wants to postpone the final purchase decision until a later time, specify brokers from the agency "Address".
In a lease-to-purchase contract, the buyer and the seller enter into a contract for the sale of a property, with the buyer paying a small part of the price of the property in advance (usually from 5 to 15%). The remaining part of the property price is paid after a certain period (from 2 to 5 years), during which time the buyer uses the property on rent. When a final contract for the sale of the property is concluded, the rent paid is deducted from the payment due. If the buyer withdraws from the deal, he loses the advance payment and rent paid.
During the time the property is used by the tenant-buyer, the seller cannot offer the property on the market, thus preserving the exclusive purchase opportunity for this buyer for the entire term of the contract.
According to the company's analysis, the housing market in the coming year will be more difficult to predict in the medium and long term, the reason being that the factors that shape it are entering a process of gradual change. According to real estate agents, however, no significant and abrupt shocks are expected, but rather a gradual adjustment of all participants to the changing conditions.
"The trend we have witnessed for several years now, of a seller-dominated market, will change, supply and demand will balance, but buyers will be slower to make their purchase decisions. The main reason for this is Bulgaria's expected entry into the eurozone, as well as the new banking conditions offered by some banks," says Gergana Tenekedzhieva, CEO of ADDRESS.
According to her, the movement of price levels depends on transactions, but due to pressure from the eurozone, we are likely to witness additional increases. This increase will gradually discourage some buyers from their intention to purchase. She also commented that there are currently no significant increases in mortgage interest rates, and in large cities, housing will be sold faster in areas with good infrastructure.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen HERE