Every body wants to buy a home. Everyone has a dream that one day he will be able to save up to buy a home for himself. But for many it remains just a dream for they are not able to either save enough or they are not eligible for getting a loan from the bank because of poor credit rating. They end up renting a home for years and years. The dream of such people can come true with the rent to buy option that is available in the real estate business. People rent houses so that they can buy it at a later stage. This new phenomenon is gaining much popularity in the real estate business. You will see such sign boards at number of places. You will see advertisement that reads like if you're fraught with a deposit or can't get a mortgage but really want to buy your own place. Rent 2 Buy is for YOU! Property dealers are now using this scheme to sell houses which are not being sold for some time due to the slump in the market.

Rent has traditionally been seen as dead money and these schemes allow you to put some of that money towards saving up a deposit for your future house. When you sign a rent-to-own contract, you make an agreement to pay weekly or monthly for a definite period of time in hope that you will own the house soon. Even though the weekly payments may be low, the numbers of weeks you pay are usually high. So you end up paying over and above market rent. Not all the money that you pay goes for the down payment. This amount is non-refundable. With this scheme you build up credit in the home which you want to buy. This will also allow you to prove to your bank that you are proficient of saving.  If you prove that some amount of value of the house has been paid as deposit then you might stand a better chance of being given more money. But in the end we see that the developer takes the credit you have saved up off the purchase price of the house.  People believe that going in for a rent to buy option is not all that a good idea for you ends up paying much more than you bargained for. It is seen more as a rent to buy scam.