Real Estate Pro Articles

Rent-to-Own Homes: Is it Really a Worthwhile Investment

[Valid RSS feed]  Category Rss Feed -
By : Liane Canonigo    99 or more times read
There are several advantages that you can avail when you choose to invest in rent-to-own homes. Purchasing these houses can make your dream come true of living in your own house. This is perfect for first times home buyers who do not want to go through tedious bank process and other lending companies in their home purchase procedures.

The whole concept of these properties has slowly paved its way on top of real estate investors. So many individuals prefer to enter in this option because they want to get the feeling of living in a certain community. This is the ideal solution to their problem.

Majority of aspiring homeowners end up living in rent-to-own houses because they can own in the future if they choose to. You are basically leasing the property and when you finally decide to stay forever, you can have the chance to buy it. You simply have to pay off the remaining balance of the price through your monthly amortization.

Although you have to secure for down payment but in this option the rates are significantly low compared to regular houses. Thus, even if you are just starting out in your family, you can have the chance to own a house without having to avail of loan mortgages.

Aside form that, you can also save yourself from facing closing costs when you avail rent-to-own homes. The deal about the appropriate value will only be limited between two parties—the buyer and the landlord. No need to worry for additional expenses later on.

In some cases, your monthly rent is accumulated by landlord as your payment for the property. Thus, do not be shocked if you will be asked to pay a higher monthly rent than the regular one. This is also one way of compensating the low down payment offer for rent-to-own homes. But then again, you do not have to bother yourself looking for huge sum of money. The rates are negotiable.

You also have to take note that you are not forced or compelled to buy the house at the end of the rent period. You are given the full right to decide whether or not you will push through in buying it. No pressures from the landlord or owner because you are given the whole time to think it over. Consider all the upside and downside of the deal. If you are on the losing end then for go the chance. There will still be more options for you to come. But if you think this is really the way to fulfill all your plans then go for it.

Another good thing about rent-to-own houses is their prices do not vary within the rent period. Landlords do not have the right to adjust the price. Even if the value of the properties in the market fluctuates, rent-to-own houses stick to their own price. This can definitely be favorable to you if prices have gone up but it becomes unfavorable if the prices go down.

Before entering into any agreement, be careful in dealing with the brokers and investors. There are some that have been long in the business, they can already fool you if you do not know anything about the transaction. As much as possible get to know different transactions and bylaws relating to real estate, or you can consult your legal counsel about it. This will prevent you from being scammed.

Related Articles

Print This Article
Add To Favorites




© All rights reserved to Real Estate Pro Articles