With the financial recession setting in, people who want to go in for ownership houses are not able to get loans either due to very high interest rates or due to bad credit rating. Hence, the need for going in for rent to own homes. If you buy the home property by opting for a rent to own method, it helps in easy possession of the homes later. You would not have to rake your brains with the mortgage companies and the Banks.
The concept behind rent to own the property is gaining immense popularity and everyone is opting for this method. The advantage in going for this method is to ensure that you are happy with the neighborhood even before actually buying the property outright. It is advised that you stay in the rented home and see for yourself whether you are comfortable with the house and the surroundings and then give your commitment on purchasing the house. This option is the ideal solution for investors.
Many of us are lucky to have a way out by going in for rent to own homes. If you are a first time investor in the realty market, then it makes sense that you go in for rent to own homes. This method is also adopted for vehicles wherein you first go in for a lease agreement with the company and later during the lease period, you could always buy the vehicle if you are happy and satisfied with the vehicle.
With the increase in the interest rates charged by the Banks, buying ownership property is not a preferred choice. Moreover, the down payments which need to be effected keep on increasing day by day. When we are faced with such a situation, going in for rent to own homes is definitely a practical choice. The down payments which need to be made are also minimal. The other great advantage when it comes to opting for rent to own home is the fact that people do not have bother about the property’s closing costs. A mutual agreement is established between the landlord and the buyer.
In few cases, payments made as rent are accumulated as payment effected towards the cost of the property. Sometimes, the landlord insists on some extra payment which is normally higher than the monthly rent. Instead of making a down payment, you would have to make this additional rent amount. These rates are however negotiable. The tenant has the option of shifting to another home if he is not very satisfied with the property. He has the flexibility of not purchasing the property. He can take this step without any repercussions.
There would be absolutely no increase in the cost of the property and it would remain constant throughout the tenure of the lease. The landlord does not have a right to increase the cost during the lease period. The risks associated with rent to own option has to be borne by the tenant since he needs to keep in mind that he is dealing with an individual landlord and not with a Bank or any financial institution.
Hence make sure you do not cheated by unscrupulous investors who want to make a quick buck out of the deal.
Sample lease purchase agreement is available at http://www.leasepurchasemadeeasy.com/