Are you planning to buy a house or an apartment? Traditionally, you would purchase the house outright, or get a housing loan or mortgage or any other financial help.
Well, now, you don't have to stick to the old ways as new methods are in place.
Today, there exist new concepts like "rent to own houses".
Yes, you can just pay the rent and after a while, when the term for the rent is over, you have the option to purchase the property by paying a nominal purchase fee or nothing at all.
It all depends on the agreement between the owner and you.
It is also known as a lease to purchase option.
This concept is not very new in the market, but it has gained much popularity since the economic crash and the credit crunch.
The lease is something like a normal rental agreement and the tenant agrees to pay the monthly rent as long as the rental term exists and then the tenant can exercise the power to buy the house.
The rent paid is usually deducted from the purchase amount of the house.
When the renter is considering the rent to own houses option, the rent is a little higher than usual but works as a way to create a housing deposit with the landlord in case of eventual purchase.
Rent to own houses give opportunities to people with a poor credit history to be able to buy a house.
This is because the tenant or the potential buyer need not make a hefty down payment in order to buy the house; he may just have to rent the house for a fixed period and then he will have the option to buy the house.
This way he may have enough time to collect some money to purchase the house.
As for sellers, when there are so many houses available for sale, it may be difficult to sell a house.
And if the reason for the sale is the purchase of new house, then paying the mortgage on both places will be very difficult if he cannot sell the old house.
In this case, the seller can give his house out on a rent to own houses basis and then he will be able to make the mortgage payments on the new house as well as create some savings.
Also, in the long run, he will be able to sell the house to the tenant, thus making a capital gain.
For renters who have always dreamed of having their own homes, it may just become a reality and the house that they rent may become their own if they choose to purchase it at the end of the rental agreement.
The plus side of rent to own houses is that very little or no down payment is required.
And a part of the rent would have gone towards the purchase of the house.
Well, now, you don't have to stick to the old ways as new methods are in place.
Today, there exist new concepts like "rent to own houses".
Yes, you can just pay the rent and after a while, when the term for the rent is over, you have the option to purchase the property by paying a nominal purchase fee or nothing at all.
It all depends on the agreement between the owner and you.
It is also known as a lease to purchase option.
This concept is not very new in the market, but it has gained much popularity since the economic crash and the credit crunch.
The lease is something like a normal rental agreement and the tenant agrees to pay the monthly rent as long as the rental term exists and then the tenant can exercise the power to buy the house.
The rent paid is usually deducted from the purchase amount of the house.
When the renter is considering the rent to own houses option, the rent is a little higher than usual but works as a way to create a housing deposit with the landlord in case of eventual purchase.
Rent to own houses give opportunities to people with a poor credit history to be able to buy a house.
This is because the tenant or the potential buyer need not make a hefty down payment in order to buy the house; he may just have to rent the house for a fixed period and then he will have the option to buy the house.
This way he may have enough time to collect some money to purchase the house.
As for sellers, when there are so many houses available for sale, it may be difficult to sell a house.
And if the reason for the sale is the purchase of new house, then paying the mortgage on both places will be very difficult if he cannot sell the old house.
In this case, the seller can give his house out on a rent to own houses basis and then he will be able to make the mortgage payments on the new house as well as create some savings.
Also, in the long run, he will be able to sell the house to the tenant, thus making a capital gain.
For renters who have always dreamed of having their own homes, it may just become a reality and the house that they rent may become their own if they choose to purchase it at the end of the rental agreement.
The plus side of rent to own houses is that very little or no down payment is required.
And a part of the rent would have gone towards the purchase of the house.