subject: Affordable Housing In Today's Economy [print this page] Over the last couple of years, the news on the economy and housing has been so bad that most people are not even turning on the television anymore! Crisis after crisis has crashed the housing market and made lenders pretty tight fisted and choosy. This means that through traditional channels the only way you are buying a home is with a good chunk of money down and excellent credit! The good news is there are several schemes that can provide you with affordable housing today.
Rent to Buy:
Commonly referred to as rent to own this is a wonderful scheme for those who are in dire need of a house or flat but cannot afford a huge down payment or pass stringent credit checks. Many people find themselves renting when they first start out and this is not a bad plan, however as time carries on the housing prices will continue to climb meaning if you rent until retirement age the money you have saved up over the years will not come close to touching the purchase price of a home.
Rent to buy schemes are available to prevent this from happening to you and to provide a cheaper alternative to standard mortgages and rent. There are several variations on the rent to own schemes and you will want to choose the one that best suits your current and future needs.
Below are a few of the most common:
Basic Rent to Buy - in this scheme you will pay a specific monthly fee, say 500 sterling per month on a 115,000 sterling home. At the end of one year, this money will be 'returned' to you as a deposit toward the full purchase price.
Stepped Down - This is pretty much the same scheme as above with a variable return and timetable. Instead of one year, you can receive 100 percent of rents paid if you decide to purchase within six months. In a year, it would be 75 percent, 18 months would equal 50 percent and 2-years you would receive 25 percent.
Private Owners- There really is no limit to the conditions of rent to own that you may find with a private owner. The rents may vary as well as the time frame to purchase affordable housing.
Shared Ownership:
Shared ownership is slightly different from rent to buy schemes. For starters, you have to qualify to participate in these programs. Generally speaking, you must earn 60,000 sterling or less per year and have own no other homes or property. You can get into these types of lease agreements as an individual, couple or on a co-buying plan with four or more individuals but each person must meet the qualifications.
Conclusion:
There are many avenues to affordable housing, if you know where to begin. Either of the above options offers you a way to purchase your home without all the hassles of traditional financing. You can rarely go wrong with property investments, with very few exceptions a home will continue to gain value over time making it one of the most secure investments you can make. Besides nothing beats the feeling of owning your home or flat.
