5 Benefits of Renting to Own a House
A home is one of the best investment options for you and your family. It is a shelter on a rainy day, and in case of an emergency in life, a home will always be there to support you. But, if you are currently renting a home and can’t afford to buy a home, there are several feasible options. You can rent to own a home and enjoy the benefits of being a tenant as well as a homeowner. Renting to get homes has become a very easy option for all those who can’t afford to get a home loan and invest in a property. It is a good option for someone who has a low credit score but still wants to buy that dream house. Renting to own homes is like a traditional renting contract where the tenant pays some extra amount every month to be able to buy the property. It is a viable option for anyone who doesn’t have enough funds to buy a home. Renting to own homes have quite a few advantages.
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Rent Money Becomes an Investment
When you normally rent a house, the rent money goes directly to the homeowner. You don’t get any benefits of a rented home except getting a temporary house. But, if you are actually spending so much money on rent, why not buy your own? You can get rent to own homes in Canada where an amount of your rent money goes into the purchase of the home. The contract varies from one owner to another but is one of the easiest ways to invest in your own home. It is a unique situation where you get to rent a dream house and also own it after a period of time.
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It can be Purchased Regardless of your Credit Score
One of the main reason for a home loan rejection is a bad credit score. If you have unpaid credit cards or trouble paying back your previous loan, you have a bad credit rating. In such a situation, it becomes impossible for you to get a home loan and buy a property. However, if you get a rent to buy a home, you don’t have to worry about a bad credit score. You can improve your credit score by renting out the property and then be able to apply for a home loan. It is a huge relief for someone who has been wanting to buy a property but couldn’t apply due to a bad credit score.
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No Property Taxes
Even if you are renting to own a house, you are not the house owner until the balance amount is fully paid. The homeowner is still the seller and is liable to pay the taxes. You don’t have to worry about paying the property tax, the repair and insurance fees or any other maintenance charges. This helps you save your income and be able to pay the whole amount faster. You can enjoy living as a tenant and improve your credit score without paying any of the taxes.
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You can Inspect the Home
If you move into a house as a tenant and then paying to own it in some time, you have full control over the house. You can make adjustments, make repairs and check for any permanent damage and get it fixed. So, you have the scope of improving a house before actually move in. You can actually live as just tenants for a few months, check out the place and see whether it suits you or not. You can then make a decision to own it and speak to your homeowner. This facility is not available when you are just buying a house. It will also keep the owner happy because if you plan to live for a longer time, the chances are that you will invest some time in maintenance and repairs and keep the house in good condition.
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Equity Grows Faster
As compared to a traditional mortgage, a rent to home lets your equity grow faster as there is quicker appreciation. When a tenant has full control over the house, he will do everything to maintain it better. He will make adjustments and make the house look much better and attractive. So, when it is time for the final payment, the price will be much lesser than what the actual worth of the house is. It will be a beneficial deal for you if you don’t have enough funds at the moment.
Also, there is no scope for any change in the contract when you are finally buying the property. The contract is already signed at the time of renting to own the house and will remain the same. No matter what the market price is, your deal will not change at all.