Why look for rent to own real estate?
Save time! Life is all about taking reasonable steps toward our goals. While it is undoubtedly the “American Dream” to own a home, it is also one of the biggest investments we will ever make in our lives. As we’ve witnessed with the mortgage meltdown, buying a home isn’t something that should be rushed into prematurely. Buying a home intelligently involves having stable employment, a sizeable down payment saved, good credit and a reasonable interest rate, in addition to learning to budget. Looking for rent to buy homes can help alleviate the hectic rush typically associated with buying a house.
Save a down payment in the short run! While the cost of rent to own property may be more than a regular mortgage initially, it affords you the ability to gradually save up a down payment. Not to mention — instead of throwing money away to someone else’s mortgage, you will be taking a logical step toward home ownership (without leaping into a high 30-year mortgage). With rent to own real estate, you will always have the option to decline the offer once your grace period is over (generally 3-5 years), in which case — nothing gained, nothing lost.
Save money in the long run! When you look at rent to own homes, you will be guaranteed a fixed purchase price so you can profit from the appreciation over time. Since the housing market bubble has popped and housing values are low, now is a good time to look! Many places also offer 5-15% off the final sale price as a reward to tenants who are pre-approved for mortgage financing before the end of their term.
Whether you have poor credit, no credit or whatever the case may be, rent to own homes are a great way to rehabilitate your life and test drive a new home, without sacrificing the space or your family’s needs.