Don’t Get Caught With a Home You Can’t Sell – Offer Rent To Own Terms
You’ve just bought the place of your dreams, signed the contract and packed the moving van and you’re all set, right? Not if you haven’t sold your current place first. So you put it on the market and you wait. And wait. And wait. Purchasers come along, but they don’t have enough money saved up for a down payment, or their credit isn’t good enough. How will you ever sell this property?
For many, the rent-to-own property may be the best alternative. Likewise named a lease-to-own property, the process operates similar to a auto lease: Tenants pay a certain sum every month to live in the house, and at the end of a set period generally within 5 years they receive the choice to buy the house. Each month of rent they pay is income for the vendor, while a part of it goes toward a down payment on eventually buying the home.
Both tenants and sellers want to be really clear about the contract they mark up before they agree to this arrangement. Renting to own has advantages and disadvantages for both parties. Sellers who have already purchased a new home will have relief from paying two mortgage payments at once, and in a slow housing market with many properties for sale, this may be their greatest option. Buyers who can’t yet afford a house may be able to get one more quickly.
Visit www.DIYRentToBuyHouses.com.au to read how Dallas & Kerrie Kelso can show anyone how to setup their own Rent To Own deal without involving the costly Rent To Own Investor middleman.
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