Rent to own homes, villas, and condos were introduced so everyone could own their house. An agreement for this property acquisition includes monthly payments for the whole renting period and the option to buy the property or leave the deal before the lease ends.
But others advocate that renting a house would be a better choice for several reasons. It might become difficult for clients to decide if leasing is a better option or owning a house through rent to own homes. The advantages of rent to buy and renting a house will be discussed.
Benefits of Considering Rent to Own Homes
Buyers need to know the advantages of rent to buy homes to make the correct decision. The rent to own house-buying schemes will provide the excellent benefits mentioned below.
Apply for a Loan with a Bad Credit Score
The most significant advantage of rent-to-own houses is that you can sign a contract even with a poor credit of five hundred points. The contract terms and conditions state that you will rent the property and have the option to buy it before the contract ends. The monthly rental payments will increase the credit score, making the mortgage application approvable.
Testing the House by Living in it
This could be one of the best benefits that you would imagine. Living in the rent to own properties before finalizing the purchase is a great way to test the property before deciding whether or not to buy it. Buyers can have a general evaluation of the leased property.
A Good Unconventional Choice For Buyers
If someone does not have the money to buy a house or lacks a good credit score, rent to own houses can be a good option. The renting period will provide them more time to save money so they can live in their dream home. The renting period lasts one to three years.
Building Equity as a Good Investment Option
This process could help you increase your wealth which can be used over time. In addition to the house of your dreams, you now have an additional source of income.
Access to Different Facilities
When you stop renting today and buy a house, you will have access to facilities like a pool, a gym, and a lounge. Homeowners can enjoy these amenities with their neighbours, friends, and family. Since you can avail all of the property’s exclusive benefits, this makes life easier for you.
Don’t Wait for Long to Move in
Clients can move into the rent-to-own property as soon as the contract is signed. They don’t have to wait months or years to shift as in the conventional house-buying scheme.
Buyers are not Bound to Pay Property Taxes
The rent-to-own property buyers don’t have the house in their names until the closing amount is paid. So, according to experts like Stop Renting Perth, the advantage they get is that no one can compel them to pay property taxes. But as soon as the house becomes the buyer’s possession, they can pay the taxes.
Benefits of Renting a House
Clients need to know both sides, meaning the benefits of renting a house. This will help buyers make the right decision. Here are the advantages of renting a home instead of you buy a house in Perth.
1. Clients will have complete freedom from paying house repairs or maintenance bills. Under the rent to own contract, the owner pays for repairs and maintenance during the rental period.
2. The tenants are exempted from paying the property tax because it is the landlord’s duty. Real estate taxes are paid yearly based on the property’s current market value.
3. You can conveniently move from one location to the other without any hassle. This situation can occur when you have a job that allows you to travel from one to the other.
4. You don’t have to pay the down payment and the closing amount that takes a large amount of your investment.
It is up to the clients to decide if they want to live in a house on rent or sign a rent to own homes contract.
Below are three questions that will help buyers decide with the right decision.
Frequently Asked Questions
How does someone find a rent to own home?
House-buyers can use different sources to find rent to own homes. These include the following;
1. Searching the internet.
2. Hiring real estate agents and agencies.
3. Asking for help from family, friends, and colleagues.
4. Posting the requirements on social media platforms.
What are the advantages of rent-to-own home versus just renting month-to-month?
Buyers can apply for a loan with a bad credit score. They can live in the house during the renting period. The property value increases. Buyers can quickly move into the house. They don’t have the tension of paying property tax during renting.
How much money do you have to put down as a deposit on a rent-to-own home?
To buy a house, clients should arrange twenty-five to forty percent of the property’s value as a deposit.
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