If you are a newbie who wants to save up on rental income then rent to own homes is the best option. Rent to own homes do not come with every property but you can surely spot them in all the NYC boroughs. The reason for these offers is that when some apartment is not drawing buyers well then the landlord opts to sell it off to get some money and so rent to own homes comes into action. This option is also known as a lease with option to purchase. It is a win-win situation for both the landlord and the tenant.
How to start a rent to own home agreement? Rent to Own Homes generally comes into effect when the seller may not be able to meet the expenses involved in selling the property. If this happens then the buyer, who has made an offer, has an option to buy the said apartment at the price fixed after deducting the cost of legal proceeding, if any.
There are two types of Rent to Own Homes: Lease agreements and Contract-based agreements. In a lease agreement the rent on a specific property remains constant for a fixed duration and is often referred to as a long term rental agreement. In a contract based agreement, the rent is paid monthly and is subject to alterations according to the tenant’s personal needs. Both of these agreements can be used to avoid sky rocketing property taxes.
When to start? Both leases and contract based agreements have several time frames in which they can be effective. For lease agreements, it is best to start looking for apartments when property taxes are still low and you have reasonable expectations about the rental payments. If you have good credit score and are sure that the interest rate and monthly rent will not increase, then look for properties until the market conditions are favorable.
Who should you hire? While both of these agreements do require the seller to pay certain legal fees, these fees vary according to the type of agreement. The lease agreements require the seller to pay legal fees and stamp duty, while contract-based agreements only require the seller to pay for certain legal fees and stamp duty. To get the most out of Rent to Own Homes, it is best to work with an attorney or real estate broker.
What are the advantages and disadvantages of a rent to own home agreement? The main advantage of this option is that there is no need for large capital investment. By putting up just a few hundred dollars as a down payment you can purchase a great place to live without the need for large amounts of money from a lending institution.
As mentioned earlier, there are some disadvantages of Rent to Own Homes. One of the disadvantages of renting rather than purchasing is the possibility of not being able to find a good location for your home. In some cases, it is even possible that the properties that are listed in a rent to own home contract have been sold by their previous owners. A person purchasing a property through a rent to own home contract may have to deal with the original owner who may have wanted to be involved in the selling of the property.
In conclusion, it is clear that Rent to Own Homes can be a great way to finance your real estate needs. The main drawback is that it can take some time to find a good location or to find a good property that meets your specific financial requirements. With an attorney or real estate broker, however, you should be able to make sense of all the terms and understand whether or not a rent to own plan is in your best interest. When carefully considered, rent payments may not be as expensive as you think.