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
predetermined period of time and within this period if they like the car
then they go ahead with the decision of buying the car.
Before giving a full commitment on purchasing a house, real estate
investors can check out 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 rapidly growing and the business in this
sector is brisk as the future home owners can get comprehensive
information regarding the neighborhood before buying 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 asked for 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 process 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 house.
If you are a buyer then here are a few reasons why the rent to own can
be an useful 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 pay twenty percent of the price of the house
as down payment. Most of the times buyers lack this kind of
qualifications, compared to this the rent to own is a much easier choice
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 subtracted from the purchase price of the house
after two years, so that you will have to pay a lesser amount of money
for the house.
The good part about the rent to own properties is that the buyers are
not obligated to purchase the property after the lease expires, the
power rests in the hand of the buyer whether he wants to make the buy or
not.
So in case you do not have enough money to make a direct purchase, it
will be a good idea to opt for the rent to own process.
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