Rent To Buy Solves Buyer and Seller Problems
Wednesday, September 30th, 2009 | Great Sites
If you are a tenant who is tired of paying somebody else’s mortgage and desire to own your own house, there are many means to buy a home. One of those ways is the Rent to Buy option, a way of obtaining ownership over time without taking on debt. The renter agrees to rent the home for a pre-determined time usually from one to five years. More often then not, you will be required to pay a fee to enter into the agreement.
The seller allows the buyer to lock in a monthly price for the property till it is paid off. This is a way to settle on something that is adequate for you even if you are not in the position to make an immediate purchase. A lease purchase can make your rent money work for you instead of making your landlord rich.
Similar to a rent to buy for a TV you can have a rent to buy for a piece of real estate. In this case most vendors that are willing to do this will want you to pay a non refundable deposit on the home, then you pay the landlord rent until you can purchase the property. This is akin to a lease option as well, except all you pay is rent. The deposit is much less than an option and you do not pay the taxes or the mortgage, since you are still a renter.
The benefit of doing this is you get into your home with the intention of buying the house at a later date. A rent to buy arrangement, where the money goes directly to the payment of the house, could be saving you a lot of money in the long run. This type of agreement works well with those who are new to the housing market or have made a job transition. It also is positive for anyone who needs to strengthen his/her credit or pay off an obligation to qualify for a home purchase.
These rent to buy deals can work really well in country towns where the population levels are much less then in the city areas. They also work well in areas that have public housing mixed with private homes. If you are looking for Rent to Buy Colyton properties you may find this to the perfect solution.
The best part about this is that with a rent to buy home, you get to live in the home you want to buy while you work on fixing your credit up. The biggest draw back to this is quite often the agreed upon price is a future price of the home. If you have a house that is valued at $350,000, a rent to buy price would look closer to $370,000. That might seem like a rip off, but a lot cheaper than a rent to own with a TV where you would pay 2-3 times the price of the TV over a 5-year period.
This creative process of how to buy a rent to own house is getting more and more popular because it creates a “Win - Win” scenario. The Buyer is able to get into a home with limited money and credit, and the Seller is able to get a fair price for their home and get it sold more quickly.