While we’re sorting through the dissolution of the American Dream, we can take a few pointers from England, where homes for rent to own is saving the day for their own mortgaging crisis. Peruse the British papers and you’ll find dozens of articles on homes for rent to own.
The successful sales team at Dunelm Homes says THE secret of their success in a slow market is their offer to let owners “try before they buy.” They offer prospective tenants a 3.99% fixed-rate mortgage and allow people to move into the homes for rent to own.
“We’ve created a rich variety of homes in sought-after locations,” explains marketing director Colin Willetts. “But while we know they are desirable, it’s important to make sure people are able to make these homes a reality. By responding to the beckoning credit crunch with some great deals, we really believe we can give buyers a greater chance of living the life they aspire to.”
If the tenants of homes for rent to own buy at the end of the two-year lease, Dunelm Home will give them a rent refund, allowing them to save money that can be used for other things – like furniture and decorations. If the tenants decide to pass on the deal at the end of the term, they can simply walk away. The homes for rent to own even cover luxury homes with high-quality craftsmanship and coveted locations.
“It’s good that the Government is thinking creatively about addressing our affordable homes shortage, supporting current homeowners and assisting housebuilders in the current challenging environment,” says David Orr of the National Housing Federation. “Try before you buy schemes make a lot of sense.”