Together to homeownership - rent-to-own possible

Hello everyone,

I just went through your posts but didn’t really find anything relevant to my concern.

My question therefore is: Is a rent-to-own option possible or even sensible for a new build with a partner?

We (not married) are currently negotiating about a plot of land and want to build in the next few months.
Our plan would be that he finances it and I pay "rent." But since I would then not be an owner, I originally wanted to co-finance. However, from a financial point of view, I can’t do that. We estimate the construction of our bungalow in the district of Freyung at 450,000€.
An acquaintance told me that I could also do a kind of "rent-to-own." Unfortunately, I’m not quite sure if I can do that with a new build financed by my boyfriend and whether that would be sensible for both of us.

Please provide constructive contributions or a reference to a post I may have missed.

Thanks and best regards

Hi,

do I understand that correctly?
Your partner is supposed to finance the house and therefore should be 100% owner according to the land register at the beginning.
You want to pay rent to your partner and thereby gradually acquire more shares of the house (also according to the land register)?

Hello readytorumble, if "Mietkauf" is defined, then you have understood that correctly yes. I am also happy to receive other suggestions that take my financial situation into account (monthly max. 400 EUR available for house). Thank you

... suggestions that take my financial situation into account (monthly max. 400 EUR available for housing).
Thank you

Then I would stay in the rental apartment...

No, in my opinion, rent-to-own is not an option for this. You should consult a notary.

The purchase of a property/plot must always be notarized. It states the shares of who owns what. Changes to this notarization (e.g., regarding ownership rights) are of course always subject to fees.

With rent-to-own, you first pay rent and then buy the property completely. The rent/interest (possibly proportionally) is credited towards the purchase price. Or you pay a higher rent until the purchase price is paid off.

One should of course also check whether the whole project is realistic at all. How much equity and income does the partner have?

€450,000 is not much for the plot + house + incidental costs (so can you even get the desired house + plot for that?). On the other hand, €450,000 (or possibly more) is already ambitious for a single earner.

A relatively simple option would be the following: You buy the house in different shares.

Example: If you can only contribute 400 € monthly towards financing and your partner, for example, 800 €, then your partner registers for 2/3 in the land register and you only for 1/3.
It becomes more complicated, of course, if your partner also brings in equity and you do not.