Buying a house in Catania or in the Etna villages is a dream for many young people. However, the biggest hurdle often isn't the monthly mortgage payment, but rather the initial down payment required by banks (the dreaded 20%).
Fortunately, there is a formula that—while still underutilized—is incredibly advantageous and gaining momentum: Rent-to-Buy. Let’s explore how it works and why it could be your key to moving into your new home right away.
What is Rent-to-Buy?
It is not a simple rental, nor is it an immediate sale. It is a preparatory purchase program. You sign a contract that involves two phases:
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Enjoyment of the property: You move in immediately, paying a monthly fee (slightly higher than standard rent).
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Right to purchase: Within a set timeframe (usually 3–5 years), you decide whether to finalize the purchase.
The "magic" advantage? A portion of the monthly payments you’ve made is deducted from the final price of the house. In practice, you are building up your down payment while already living inside the home.
How is the monthly payment split?
Let’s say you choose an apartment in Gravina or Mascalucia for €150,000. Instead of a €500 rent, you pay €800. Those €800 are divided as follows:
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€400 as pure rent (non-refundable).
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€400 as an advance payment on the final price (forced savings).
After 5 years, you will have already paid €24,000 toward the house. At the time of the final deed (rogito), you will only need a mortgage for €126,000 instead of €150,000. This makes bank approval much easier!
Advantages for Buyers (Young Couples & Professionals)
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Immediate entry: No need to wait years to save up for a deposit.
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Price lock: The price is fixed today. If property values in the Etna region rise over the next 5 years, you save money.
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Home "Test Drive": You get to live in the property before committing. If you discover the neighbors are noisy or the area isn't for you, you can choose not to buy (though you will forfeit the accumulated down payment portion).
Advantages for Sellers
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Wider Audience: You reach buyers who otherwise couldn't afford the home immediately.
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Higher Yield: The monthly payment is higher than a standard rental fee.
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Guaranteed Maintenance: Since the resident intends to buy the house, they will treat it with much more care than a typical tenant.
What to Watch Out for in Sicily
Rent-to-Buy requires a watertight notarized contract to protect both parties.
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Transcription in Property Registers: This is essential to protect the buyer in case of the seller’s bankruptcy or foreclosure.
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Exit Clauses: You must clearly define what happens if, at the end of the 5 years, you are still unable to secure a mortgage.
Domus Sicilia Note: This formula is ideal for properties that have been on the market for a while or for owners who want to sell quickly without underselling their asset.
Our Consultancy
At Domus Sicilia Immobiliare | Dimore e terreni, we are ready to guide you through this negotiation. Whether you are a young person looking for your first home or an owner wanting to sell smartly, Rent-to-Buy could be the perfect solution.
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