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. Rent to own methods help in bringing your dream of owning a home come true.
In many situations, rent money will go to the landlord which they pay to mortgages on the home and will supplement their income. With the rent to own house options however, a portion of the money is going to go to the purchase of the property that will be able to help in making it easier for renters in placing an investment for the home.
This is also a good option for those who have bad or poor credit. The fact that the rent payments are going to go to the home’s purchase, it will work like a mortgage. If it is time to make the last payment as well as the purchase of the property, the landlord then can use the credit that the tenant established to justify the transfer of the deed as well as the sale of the house.
When you go for a typical mortgage and home purchase, this will mostly take months first from the time the offer has been accepted on a home before the buyer could actually 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, purchase price is much lesser compared to the property’s value.
When the tenants will move in, they are able to get a full control of the home, which means that they can make any adjustments they find necessary. 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 will benefit the tenants because it makes it easier for them to save money until they are able to 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.