by Jeff
4. October 2011
A lot of people have probably wondered what makes rent to buy so different from your average renting? Even so, some actually think of it as a joke considering the amount of money you get in return for renting with the owners. What is rent to buy? in plain English, you get to rent the place up until the time you're ready to buy it after saving up for some time or once you're ready to get a mortgage or home loan. It's doesn't take rocket science to understand the concept behind it, practically this program is tailored for people who need a place of their own fast and easy.
Unless you’ve been stuck under a log for the past year, you’ve probably heard of lease to own and the variants of the concept behind renting to buy a place of your own. Aside from this, you get to be tied up to a contract that states your land owner keeps the title or deed of the property and that a portion of your repayments get applied as credit to when you purchase the property after a year or so. An initial deposit is required for applying to the program much like applying for a loan or buying a new car. Your motivation to secure a home dwelling for your family’s future is measured by how much money you can save for a your own home.
The flexibility of owning your own place with lite and easy terms of renting. What more can you ask for? Perhaps you’ve been in the renting scene for quite some time 5, 7, 10 years maybe? Can you imagine how much money you’ve put into the deep pockets of your landlord and never get anything in return? With rent to buy you actually a return investment with every repayment you make, think about it as a small bonus for having signed up with the program. What’s more, rent to buy safeguards your from any unusual market fluctuations in case the market price of the house goes up, whatever the price that was agreed upon in the contract is what you pay within the renting period.
Another plus to rent to buy is the freedom to do minor renovations than compared to traditional renting that you can’t even hang your favourite portrait or painting without your land lord pestering you. Now, you don’t get any closer to owning your home fast and easy than this.
All in all, rent to buy is a worthwhile alternative than the conventional renting or if you are unable to secure a bank loan presently. Why rent when you can rent to buy? So the next time people ask you what is rent to buy, you’d know that securing a bright future for your family means having the stability and security of a place of your own. Rent to buy does just that, easier and faster thank buying a property outright.