The Advantages of Rent to Own Houses
It’s a fact that not all people have the capability of buying a home through conventional ways, which is why a rent to own houses are the best option when it comes to a home ownership. A rent to own option is able to help bring your dream of being able to own a home come true.
For most cases, rent money goes to the landlord to which they will pay to mortgages of the property and for supplementing their income. However, with the rent to own house option, a portion of the money will in fact go to the purchase of the property, which then helps in making it easier for renters to put an investment in a home.
This actually is also a good option for those having poor credit score. Because the rent payments will go to the purchase of the home, this will work like a mortgage payment. When it is time to make the last payment and the purchase of the property, the landlord could then use the credit which the tenant has established in justifying the transfer of the deed and the sale of the property.
When it comes to typical mortgage and home purchases, it would usually take months after the offer has been accepted on a home before buyers could then move in. But with rent to own houses, you could move in only within a week or two after the deal has been made and after the signing process of the documentations.
In rent to own houses, equity builds a lot faster due to the fact that the appreciation is faster than an average mortgage. If the tenant has control of the home, they are able to make improvements as they are paying the rent. If it is time to make the last payment, the purchase price is lesser compared to the value of the home.
After tenants move in, they could then get a full control of the property and can make adjustments that they think is fit. Due to the fact that the tenant has a high stake on the property, landlords usually don’t spend their own money in improving a home that they won’t live for a long time and eventually own, which is why landlords don’t worry of tenants damaging the property.
The fact that the home still belongs to the landlord, they are in fact still the one responsible on the property taxes until balance are paid in full and ownership are transferred to the tenant. This actually benefits the tenant because it becomes easier for them to save money until they own the property.
Though tenants will be paying a higher on rent compared to conventional renting situations, the rent increase is worth it because the property will become their own in the future.