by Jeff
13. September 2011
Any average renter may have noticed or come across rent to buy deals and wondered what makes rent to buy different from the conventional renting scheme? Is there really anything that makes it special aside from the fact that I get to rent on it for a while then after sometime I can get to purchase it (if and when I get the money to pay off the mortgage). Well course there is more to it than just “renting” for starters it’s just like investing in something that can be yours earlier on and gradually increasing your ownership of it with every weekly repayment you put into it. Then of course there’s the usual deposit that gets applied to the principal price of the property once you’re ready to purchase it.
Of course it’s not just your usual renting scheme, because you get 30% of your payments applied to the price of the property as well, making it a worthwhile investment as you gradually take ownership of the property through every repayment that you make. On another plus side, the repayments are flexible enough to fit your budget. Rent to buy programs are flexible enough to fit just the right size of house for you, or something that would be right about your budget all because of the constantly growing listings that are available almost everywhere and even through the Internet.
To begin with, try to look up different institutions that offer rent to buy in your area. Ask around for sellers and vendors that offer it. Chances are you’ll find quite a number of sellers that have houses up for grabs. Check the details and the area of your preference then inquire of the repayments. First home owner’s grants are also accepted up to the maximum allowable amount and may be used for your deposit.
The rent to buy programs are actually designed for people who are new to buying homes, and even folks who are either recovering from a bankruptcy or are establishing their credit for a future mortgage. Within a year’s time of rent to buy, you may decide and get a feel if the program is for you. In the event you change your mind, you may opt out of the deal without any hassles. For people who are a bit short on funds, you may inquire about the availability of owner/vendor financing wherein the seller decided to finance a portion or all of the fees for selling the property and offers it as a rent to buy property.
With this kind of offer, rates are more flexible plus a possibility of cheaper deposit may be available. Having said all these gives you reason enough to understand what makes rent to buy different from any other renting program. Owning your own home couldn’t get any easier.