Rent to Own
Is it Worth it?
Most likely when you were given the option for your living arrangement you saw the options to either own your house out right or to rent the property until you were ready to move out. In reality there is an option between the two that can be much more beneficial depending on your lifestyle choices as well as your financial state.
Renting to own is a pretty self explanatory term which describes the process of paying for a property in both rent and building towards the full final cost of the property. This means that all the rent that you have been contributing towards the final price acts as somewhat of a downpayment, with the ability to at a time set by the renter purchase the property in question.
Rent to Own Pro’s
Renting to own can be a fantastic option for those who have the future on their mind but do not necessarily have the funds by themselves to secure an adequate downpayment. Individuals with less then stellar credit scores can also benefit from the ability to rent a property while simultaneously providing the downpayment for the eventual purchase of the property. Renting to own might also be a good option for those who may have lost a home in their past to a foreclosure or any other such financial hardship. One additional benefit is that you can lock in a price today and know how much you’ll pay for the property at the end of the lease term.
Rent to Own Con’s
With this freedom from the two conventional ways of establishing property does come a price. Most times your rent will be higher for a rent to own property as many individuals who are willing to let you rent to own are using it as an income as well as still taking care of the property in question in case you decide not to purchase the house.
Also be sure that when you do decide to purchase the property that it has no liens or back taxes that are still needed to be collected because those will transfer to you.
As you can see renting to own a property can be a great decision for any one who has had trouble with their credit score or who simply want to keep their options open. Many people I know who aren’t sure if they will settle down somewhere pursue these options for the relative amount of freedom and security they provide.