Changing your living arrangements from a standard rental agreement to a rent to own agreement is something that can be a very exciting prospect for most families. Let’s face it, not too many families want to rent their home for the rest of their lives, but for many, this is a reality that they live with everyday.
This article will talk about the risks and benefits involved with Rent To Own agreements, and you assess your own situation to see what how you can make this alternative home ownership program work for you.
Over the last seven years, We Buy Homes have helped many families achieve home ownership through many different forms of Rent To Own arrangements. For us, it is one of the most satisfying feelings to know we had a direct involvement in helping these families to own their own home.
The Rent To Own opportunity, however, is not something that you should jump into without looking at the possible risks. Over the last ten years or so, there have been many get rich quick type seminars being run by people, who basically teach their attendees, how to get rich selling Rent To Buy Houses. The sad part about this is that many unethical people enter this investing method, hoping that you will not be able to keep on top of your rent to own payments.
Before you enter into any rent to own purchase, make sure you weigh up the benefits and risks. If the purchase agreement looks all one sided for the seller, then run for the hills as fast as you can! What you need is a purchase agreement that is evenly balanced, so that your rent to own experience is successful.
What we call a successful Rent To Own agreement is one that runs for no longer then five years, before the buyer converts into a normal home loan. In most cases, a rent to own buyer should be able to convert into a normal home loan in two or three years, depending on the condition of their credit rating.
An even better solution is to find a motivated seller who really wants to sell their home and offer them rent to own terms. If you can help a seller who may otherwise have their home foreclosed by the bank, then you have both won and helped each other in the process. Are you starting to see the benefits of a good rent to own deal?
The key points to take away before considering if you should enter into a rent to own purchase is how the purchase can benefit you. If you don’t have enough good reasons to move forward with your purchase, then don’t go through with it.
Around Australia, there are thousands for people buying and selling homes every day. There are always people who can’t sell and people who don’t qualify to buy the normal way. We Buy Homes want to encourage you to make sure you think outside the square and make your Rent To Own purchase is the most successful it can be.
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