subject: Rent To Buy Is A Superb Alternative [print this page] Everyone desires to have a dream home of their own. There are many instances which provide a stumbling block in the process of making these dreams come true. With the economic recession setting in, these dreams may only remain dreams.
People are now thinking twice of whether they really want to invest all their hard earned money on property or a home. There are a number of options now available like lease options and rent to own home options. With these options, owning a home can be achieved. Let's now check out how this is achievable.
We come across advertisements stating rent to own homes or lease contracts options. These terms do not mean the same thing. Under rent to own options, a specific amount is set aside or the entire rent goes towards the deposit for the home. The individual may want to purchase the house within the stipulated time frame. Under the lease method, the renter and owner enter into a lease contract agreement. An initial down payment is made and the period of lease is brief.
The difference in lease options is the buyer can decide whether he wants to purchase the property or not.
The greatest advantage in the rent to own home is that you stand to benefit irrespective of the economy rising or falling. Under the conventional mortgage method, you end up spending more if the economy falls, whereas under rent to buy properties, the price is fixed permanently.
The buyer has to make a few monthly payments in the beginning and some of it is actually an advance payment. You are eligible to buy the home usually after a period of two to five years.
A rent to buy home is ideal when you deal with costly homes as you have the choice to either buy or decline to buy the home or property. People who have a bad credit history may want to go in for this option as you need not have to please the lender corporations and banks. Under this scheme, the renter pays the monthly rentals till the date he buys the property. You need not necessarily have a good credit rating but you should be able to pay the monthly rentals on time.
If you are one of those individuals who want to buy a nice little house or flat or are tired of staying in rented accommodation, then this option is the ideal one.
It has been researched and established that youngsters do want to purchase their dream home, but are not able to do so without the help of their parents. The next best option is to borrow money from a lender. Only twenty five percent of people believe that it is possible to own a dream home without taking any help from anyone absolutely.
With such a low percentage, the concept of renting property is fast gaining popularity. In fact, youngsters tend to forget that they shell out big money by way of rentals. This is indeed a vicious cycle.
