When buying a rent-to-own home, you’ll find that there are a lot of advantages to you (the buyer) for having a rent-to-own contract. Below are 7 advantages for the buyer in a rent-to-own agreement:
1.) Rent-to-own surpasses the traditional non-private apartment setting. Most people, when they think of renting, an apartment usually comes to mind. When you’re looking for a rent-to-own home, there’s a lot more freedom because you’re not stuck in an apartment with no yard. These transactions are usually in townhomes, condominiums, or houses. The luxury is that you have a little more freedom to choose something you wouldn’t mind spending the rest of your days on. Some homes have swimming pools, beautifully manicured gardens, and many times you will have full access to all amenities if the home of your choice is located in a community or subdivision.
2.) Build up money for a down payment and credit while living in the home of your dreams. Since mortgage companies and banks are tightening lending and not many people have a twenty or thirty percent down payment, renting a home to own allows you to work with both your credit and your down payment money. You no longer have to wait for someone to move into your dream home because of credit and money.
3.) The purchase option belongs to the buyer. If the market changes, the buyer can change with it. When the term of the contract ends, it is up to the buyer to decide whether or not to buy the home. Although the option deposit that was made at the beginning of the transaction is non-refundable, it may be better to find another home to buy because the real estate market may have changed for the better.
4.) Even if a buyer doesn’t qualify for a conventional mortgage, they can still live in a home. Let’s face it, the lending market is tough right now and it will probably get even tougher. Looking for a rent-to-own home gives you a much better way to qualify than traditional mortgages. Everyone needs a place to rest their heads for the night.
5.) The properties are usually in much better shape than traditional rentals. This is a big one. Have you ever walked into a house that she was going to rent and saw that a cardboard box might be a better place to rest? Most of the homes on the rent-to-own market are in spectacular shape. Some are houses that could not traditionally be sold. This leaves you with a large inventory of nice houses to choose from.
6.) You don’t have to move twice. Find the house you want, honor the agreement, and you won’t have to move again. Keep building your credit and your money. When the lease option time is up, you should be in a much better position to buy.
7.) Buyers don’t have to wait long to move in. Houses are usually move-in ready. Since many of these homes have been on the market for a while, they are move-in ready. Owners often give their homes a good clean and check it out thoroughly before putting it on the market, which in turn means you’ll have to wait to move.
Since the economy is changing so drastically, people are turning to alternatives other than the traditional way of buying a home. Renting to own homes is becoming a growing trend across the country due to these changes. Keep in mind that there are many advantages to buying a rent-to-own home.
