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The Truth About Rent To Own

The Truth About Rent To Own

Most of us are very familiar with the term "rent to own". Places such as Prime Time and Rent A Center have built an empire with rent to own merchandise, although the buyer normally ends up paying double what the merchandise is actually worth. While this may be great for those who have bad credit, most of us prefer to avoid going this route. Homes are no exception, especially if you are buying a home on a rent to own basis.

Even though rent to own may be good for a short period of time, it proves to be an expensive way for someone to buy something they intend to keep. Rent to own merchandise for example, may sound quite compelling at a few dollars a week. The agreement is normally for around 15 - 20 months, which is where the company makes their money. Although you may be paying just a few dollars a week, the total amount quickly adds up to nearly twice the cost of the item.

Along with paying rent, you"ll also have to pay applicable sales tax as well. Like merchandise, rent to own real estate has it's disadvantages. Even though it can be great for those with not so great credit, you"ll normally end up paying back a lot more than you would with a mortgage. You"ll still have to pay back your lender with a mortgage, although that amount won't be nearly as high as it would if you decided to get a house on a rent to own basis.

In most cases, rent to own houses are put up on the market by the owner. This way, you"ll deal directly with the owner. It will start out as a traditional lease, then proceed to a rent to own basis if you decide you want to keep the home. You and the owner will then work out an arrangement, which will normally be quite a few years. Some owners are very flexible and will work with you just to get the price they want for their home, while others will charge you quite a bit more, in order to make a hefty profit.

If you have bad credit and can't get approved for a mortgage, then rent to own would be your next best option. Although some don't like to do it due to the price, for many it's a better alternative than an apartment. With rent to own houses you are paying money towards the home, instead of just paying rent. In some cases this is fine, although you should make sure to double check with the owner before you agree or commit to anything. This way, you"ll know how much you"ll be paying for the home - and for how long.

Own Rent Truth The

I agree that it makes sense to know what the conditions of the contract are to make sure your not paying more than you have agreed to. Any rent-to-own contract should be clearly defined as to how much you pay and for how long. If you do not have this you will probably be stuck paying a lot more than you should.

The Truth About Rent To Own History & Civil Business Politics

We do not have a rent to own program here expect for some government housing. I wish we could have that since based on the prices of real estate, that's the only possibility for most people.

Own Rent Truth The

Here in the US its very popular, as a matter of fact my mom got a property this way otherwise she would not have been able to afford it.

Own Rent Truth The

Rent to own only works out if you get your worth by the time you finish paying for the house. In other words you are not sweating to pay the 'rent' which is usually much higher than a regular rent, etc.

The Truth About Rent To Own

You also have a much shorter period to pay back the entire amount than a regular 20 year mortgage, sometimes within a couple of years you have to pay the whole thing.

The Truth Rent Own

I would never recommend rent to own unless you have a whole bunch of money to purchase the house within few years since they ask for a lot of stuff in order to get through.

The Truth Rent Own Politics Business Civil & History

When we lived in Minnesota, we found that "contract for deed" was quite popular. Elsewhere, I have usually heard it described as "owner financing". Actually, these probably are not exactly the same as "rent to own" for real estate. They are contracts where the owner finances the purchase.

The way I have generally understood all of these situations is that a person will "rent" or lease the property for a period of time during which they will work on getting conventional financing.

I would say that "rent to own" gives both parties a lot more flexibility, as there is usually a specified period of time where either party can cancel the transaction. If the "renter" is a good tenant, but cannot get financing arranged, the owner will frequently allow the person to continue to rent after the specified period is over.

Overall, from what I have seen, this is an excellent way for many people to purchase homes, especially when they are unable to gather a down payment.