What You Gain from of Rent to Own Homes
Renters and sellers have their share in the benefits if rent to own homes.By choosing rent to own there are many positive achievements that come in. Some of the advantages are as explained in the paragraphs below.
Getting first-hand information is the about the home that he wants to buy is the first benefit the buyer gets from rent to own contracts. Buyers will be able to determine the kind of adjustments or improvements that may be required.When the potential buyer find the conditions unbearable they have an option of terminating the agreement. The renter will have an estimate of how much it may cost him/her to improve when he enters the house. The buyers will have an opportunity of familiarizing themselves with the surrounding areas.
The other benefit is that the price of the property remains the same throughout the contract.The terms of purchase being the same throughout means neither party has powers to do alterations. Whatever price is agreed upon from the start remains the same to the end. After agreement, no one has control over any circumstance like fluctuation in the value of homes.When there is a decline in prices of homes it becomes profitable to the seller as the agreement cannot be redrawn.
Rent to own homes are inexpensive to the sellers and the buyers. There is no need for a down payment by the buyer. The renter only needs to pay the rental deposit agreed.Where you find no tax amount required rent insurance will be payable which is cheaper than homeowner insurance. By not paying taxes the buyer will save some money towards the purchase of the home.The landlord does not need to incur the cost of advertising their property.A potential buyer is already available. It is also less expensive for the seller as there is no real estate agent. You can eliminate the commission that the real estate agents will need to be paid.
Finally everything that has advantages will also have disadvantages. To the buyer there will be no refunds of any amount paid if he decides to end the contract. The buyer does not have any rights on the property until they have purchased. The fact that the price agreed does not change may be a blow to the buyer when the value of the home declines with time. To the seller the income comes in slowly because the payments are not once off. The owner is disadvantaged because they are not certain that the renter will purchase the home.In case there is an appreciation in the value of the property the seller will be at loss because he cannot change the contract.