Benefits of Rent to Own Home

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There are many benefits of home ownership and these include – tax deductions, security, etc. Renting to own is a perfect option if you don’t have the money to pay a downpayment for buying a house but always wanted to have an investment like acquiring a house you can call your own. One of the major benefits is the rate at which you accumulate equity. And you could get more home than you may qualify for at this time.

  • Equity growth: The buyer’s rent payments will actually go toward an investment — toward equity in a home. Every month a portion of your rent payment is credited towards your down payment or off of the sales price.

  • Option deposit is credited to the price of the home: The buyer/renter pays the seller an option deposit like we mentioned above. This money is vested interest in the home and will be fully credited when you buy the home.

  • Minimum expenditures out of pocket: When you buy a home, you need a down payment that is at least 5% – 10%, depending on your credit, of the purchase price of the home as well as closing costs. Here, you’ll only pay a normal rental security deposit typically plus the option deposit.

  • Flexibility in requirements: Restrictions are up to the seller which means there could be more flexibility with credit, etc. You prove your ability to purchase the home by making rent payments every month.

  • Control of the Home: You are in total control of the home you are renting. You’ll get to learn the ins and outs of the home, what needs improvement and what needs to be changed before actually owning it.

  • No Taxes, Less Liability: Since the buyer does not yet own the home, they do not have to pay property taxes up front, etc. So the buyer has time to prepare for the cost of the home and learn about the total cost of the home while there before they have to take on full responsibility.

By | 2014-02-04T10:52:12+00:00 February 4th, 2014|Categories: Home Ownership, Rent To Own House|Tags: , , , , |0 Comments

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