Housing: Is renting-to-own a good idea?
There is no enigma attached with rent-to-own housing idea and it simply means that you can rent the house to start with and for some time period that will be mentioned in the contract you will have the option of buying that property or house. These are highly negotiable ventures and don’t make the mistake of believing that terms and conditions cannot be altered. However, once the deal is on and in case the buyer does not buy the property, the rental amounts as well as the home remain with the seller.
Win-Win Situation for Buyer and Seller in Most Cases
So what’s the difference when compared to traditional house buying activities and going for rent-to-own housing idea? From a general perspective this is a great option when markets are not performing well and as a seller it is hard to find the right deals for getting optimum returns. If you are a buyer, this is a sure shot way to minimize upfront payments as it allows ample amount of time to build on substantial liquidity before going for the actual buying process. You can easily get a time ranging from 2 to 3 years before making the actual purchase.
Is it always rosy?
As with all real estate agreements, the actual papers will be something that as a buyer you will have to pay attention. This is an ideal situation for “Look before you leap”. In most cases a fixed monthly credit will be deposited towards buying the house and should you decide not to buy the property, the credit stands forfeited. In some cases a forfeitable minimum deposit option may also be there. If you are very sure of buying the house right from the very start then all these credit hurdles will not be of much concern.
Rent-To-Own Housing – Time Equals Money
The time period that you are able to get during the buying process is the major attractor factor for this process. Rather than going for straight and direct finances this seems to be the better option. Make your calculations regarding monthly expenses for direct loan premiums so as to have active comparisons against rent to own buying process. If there are doubts regarding the overall planning then you can take active help from several online portals so as to have a comprehensive analysis regarding the benefits you may achieve.
For plans to work out you must have a fair idea regarding the investment you are willing to make in property purchase. This would provide a working basis for many subsequent calculations and put you in a state where you can clearly figure out the overall results. There is no rocket science involved in this process. Considering turbulent financial situations all over, a rent to own housing contract may provide just the right momentum.