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From A Small Rat Hole to A New Home: Why Rent When You Can Rent to Own?



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By : Karim El Sheikh    99 or more times read
For most of us, we feel that buying a home is problematic, particularly when it comes to the financial costs. In another light, some people do not buy homes because they are unsure of how long they will stay in that place. However, if you are sure that you want to stay in a certain area, then you need to ask yourself why you are renting when you could actually be paying your way to a house of your own.

Enter the concept of “rent to own.”

Under this scenario, parts of your monthly rental payments are actually going to the payment of the house. The idea is that after a period of time renting the house, you will earn ownership from the current owner. It sounds like the best of both worlds – you get to own the house later on, but you retain the option to leave when you need to.

Rent to own payment schedules are more expensive than regular renting, but they usually do not match the same amounts as for mortgage payments. It lies somewhere in the middle of those two. In terms of the length of the payment period, rent to own payment plans are usually slated for longer than mortgaged homes with the same value.

Imagine this: You are paying $400 a month for your house, which you are renting from someone. However, you can find a rent to own place for $600 per month, which might cost $800-1,000 dollars monthly if you were to take out a mortgage on it. Since you plan to establish yourself in the locale, the rent to own place is a good choice because it is affordable and will eventually become yours.

The full purchase option is the best choice in this case, as long as your current income can support the payments, but the rent to own option certainly is nothing to turn your nose up at.

When you crunch the numbers, a rent to own property will be more expensive in total as compared to a mortgaged property of the same real estate value. In the long term, renting the place is the most expensive, but it does have the most manageable monthly payments.

Many foreclosed homes are now being leased out on a rent to own basis. This is a way for banks to recoup some of their losses while ensuring that the properties do not devalue too quickly. For us, it is a great opportunity to upgrade our lives with potential for complete ownership of the home later on.

Some tenants are not particularly caring for the units or houses that they rent. However, in a rent to own house or unit, you have an incentive to keep things in good condition – after all, you will become the owner at some time in the future. In any case, it’s good manners for a tenant to care for the rented unit or house.

It is not hard to find rent to own units and houses. These will be listed in real estate offices and real estate publications. You can also inquire with a property owner seeking to rent out their property. If you get lucky, the house of your dreams can be yours through a rent to own system!
Renttoownhomes.cc is your source for finding rent to own homes nationwide. Search all the latest rent to own properties.

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