The Benefits of Rent to Own Homes
Even if you are raring to buy a home of your own, you may be overestimating your readiness to take on the responsibility of being a homeowner. To determine if you are prepared for this commitment, you should try living in a rent-to-own home first.
At present, many people are still confused as to whether buying a house for sale now would be the wise thing to do. The inability to get approval for a home loan because of a bad credit history is one reason. One other explanation is that they may not be prepared to face the finances that come with owning a house. If you find yourself in these scenarios, then one thing that you can do is to live in a rent-to-own property.
When you live in a rent-to-own property, you are basically leasing it for a certain term to get a feel of it, during which you have the choice to purchase the said property. Buyers are not the only ones who benefit from this set up; sellers who offer their houses for sale as rent-to-own homes can reap the rewards as well. Sometimes, a house being sold takes a while before getting an offer from a buyer, so renting it out will be a great way to earn off of it even before itís sold. These are some of the pros of a rent-to-own home.
For the renter/buyer
1.†††††† Like what was previously stated, you wonít have to purchase the home first to find out what it would be like to live in it. Renting it first will help you really figure out if it is the home for you.
2.†††††† As long as you are in the house, you are the priority buyer should you decide to make an offer; other buyers will not be a cause for concern.
3.†††††† The buyer wonít pressure you into buying right this minute; you can take your time (or at least spend the entire lease term) thinking about it.
4.†††††† There are certain arrangements where some of the rent money goes directly to the houseís equity. This money will also be subtracted to the down payment for the house if you decide to buy it.
5.†††††† While you are renting, you can take the time to repair your credit record so that you will be approved for a loan in the future.
For the landlord/seller
1.†††††† Even if your house hasnít been sold yet, youíre already gaining profit from it, and you stand the chance to get more should the renter make the decision to purchase it.
2.†††††† You wonít have to worry the way that a landlord does about the condition of the house; since the tenants have a choice to buy the home, they will make sure that it is in the best condition.
3.†††††† When your renter gets a first-hand experience of living in your home, you might stand a better chance of selling it. Even if they decide not to buy it, your house still may have gotten more attention from the visitors that they invite over during their stay.
Just because you want to buy a home doesnít mean that you are actually ready to own a home. Look for a rent-to-own home and find out if you can handle being a homeowner.
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
A senior web strategist at MyProperty.ph - the Philippines' fastest growing Real Estate portal with wide data base of condo for sale. Reagen is currently in-charge of planning, execution and monitoring of the company's search and social media campaigns.††