Facts about rent to own home options
Suggested: Rent to own: Facts & Tips; All you need to know about the
‘rent to own’ option
The process of rent to own homes is very similar to the rent to own
car methods, where the potential customers of the car rent the
vehicle for a specific period of time and within this period if they
like the car then they go ahead with the decision of purchasing the
Before giving a full commitment on purchasing a house, real estate
investors can inspect the whole condition of the house by actually
lresiding in it as renters. The overall advantage of the rent to own
homes make them a good way to make a real estate investment.
The idea of rent to own home is fast growing and the business in
this sector is brisk as the future home owners can get comprehensive
information regarding the neighborhood before purchasing the home.
For the first time investors rent to own has become a good strategy.
Most of the times the first time home owners find to their dismay
that the down payments needed while purchasing a home is huge but
when it comes to rent to own homes the down payment is very low.
People who opt to buy a home through a rent to own home method can
have a first hand experience of living in the house and actually try
it out for a few years before making the decision of buying the
If you are a buyer then here are a few reasons why the rent to own
can be an effective tool for you. In case you are someone with a bad
credit record then it will be really hard for you to get finance for
your house acquisition. Even if you have a good credit and want to
take a loan mortgage, you will have to shell out twenty percent of
the price of the house as down payment. Most of the times buyers do
not have this kind of qualifications, compared to this the rent to
own is a much easier alternative if you are cash strapped.
The prospective buyers take the lease of the house for about two
years by paying a mere two percent of the price of the house as down
payment , and you have to agree to pay a monthly rent for the entire
span of two years. A part of the monthly rent will be accredited to
the rent credit account which will be taken away from the purchase
price of the house after two years, so that you will have to pay a
lower amount of money for the house.
The good part about the rent to own properties is that the buyers
are not obligated to buy the property after the lease expires, the
power rests in the hand of the buyer whether he wants to make the
purchase or not.
So in situation where you do not have enough money to make a direct
purchase, it will be a good idea to opt for the rent to own policy.
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