These days rent to own real estate is very popular. Many current owners find it is a way for them to sell the property the have now instead of later on. It can easily become a burden for them to make the ongoing payments while they are waiting for someone to buy it. This pertains to both commercial and residential property out there. The real estate market has certainly suffered in the tough economic times out there.
With this type of offer, the owner of the property retains the ownership of it until it is paid for in full. They aren’t responsible for common repairs because they aren’t the landlord. This is great news for those that don’t want to continue worrying about having to cover costs related to that particular type of property. The one downside is that depending on the cost of the property involved it can take many years before it is paid for in full.
For someone that is tired of paying rent, the option to rent to own is a great way to invest their money instead of paying for something that they are only temporarily using. They have the ability and the right to fix up the property any way that they would like to. When you are simply renting from someone you can’t do so without their permission. This means that you aren’t able to enjoy the properly to the fullest in a manner that you will be completely happy with.
The process of buying property through a lender can be time consuming and difficult. You have to come up with a large amount of money down in many instances. Most consumers that want to buy properly can’t do so right now. With the rent to own option though you can get the properly you want now instead of having to save up for a down payment and for closing costs for a couple of years first.
With the rent to own option you don’t have to jump through hoops either when it comes to issues such as passing inspections. This can be one of the most frustrating parts of buying a home when a bank is lending you the money. When you rent to own you get to decide if the property is worthy of you investing in. Of course you do have the option to pay for an inspection to be done before you commit to it as well.
If you don’t have credit or your credit is very poor, then you may feel that you can’t buy property at all. However, you can do so through a rent to own option instead of going the traditional route. Some owner’s of such property will require a credit check but most of them don’t. As long as you have a steady work history and you are willing to sign a contract they will work with you.
Rent to own real estate can be a win/win situation for everyone involved. That is as long as it is done correctly. Take the time to talk at length with the seller of such property. Make sure you are both on the same page and have the same goals in mind. They are going to want to make sure you are going to make the monthly payments as decided upon. You want to make sure you are getting property that is worth the asking price. You also want to make sure that the written contract of the rent to own property is in great detail. This way both parties will be covered for the duration of the agreement until the property has been completely paid for.
Should You Rent to Own Real Estate?
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