subject: Rent To Buy - The Cheaper And Economical Option [print this page] It is a dream for many of us to possess our own home. But how many amongst us are ready to undergo the troubles associated with buying a property? Definitely, not many of us at all. Thus, rent to buy may be the next preferred option for many of us. Owning a home also has its own share of problems when compared to rented homes and property.
Given below are some tips that could help you make a rational decision, and also narrow down the process of selection between buying your own home and a rented home.
1) Possessing your own home may put you into some difficult situations.
Though home ownership is definitely a reflection of your financial standing, it no longer holds true in today's property market, thanks to the economic and property recession. This has put many people (who have taken a mortgage loan) into serious predicaments. Many of the house owners have landed in debt, and the debt amount totals to much more than the original property cost. This is indeed an alarming situation that many homeowners are facing.
2) Home ownership also implies responsibility to maintain your property.
Unlike rent to buy properties, where the tenant pays you the monthly rent and the maintenance costs are taken care, property owners with home ownership rights also have to pay for the repairs, maintenance and other property related expenses. This raises their budget and sometimes it becomes difficult for people with a tight budget. Moreover, there is a substantial increase in homeowners' association fees. On the contrary, once you have rented out, some part of these repair expenses are contributed to by the tenant. This reduces your burden as a house owner considerably.
Nevertheless, there are also some benefits of maintaining an ownership property. When an individual rents the property and then purchases it, it becomes important for him to tackle issues only with the consent of his landlord. This is not true for ownership homes as the landlord has full right to make a decision without having to take anyone's suggestion.
People purchasing ownership homes are at an advantage when the real estate market is booming. On the contrary, rent then buy homes would vary depending on many market conditions. It is imperative that a tenant decides on the period i.e. number of months he would be occupying the property. It is advised that if you have sufficient funds, then go for ownership homes. However, people who are on a transferable job should opt for rented homes as they are the best and ideal practical solution.
The main objective behind rent to buy is to give potential buyers who have stayed in rented homes a fair chance to buy the property outright at a later date. This provides the tenant with the benefit to stay in the property and then buy it only after they are fully satisfied. Rent to buy homes are thus undoubtedly the best option for first time buyers.
