If you are somebody who rents a property and is fed up of having to pay another person's mortgage and want to own your own home, there are lots of ways to purchase a real estate; one way is Rent to own (RTO) method, a method of acquiring ownership after some time without taking on debt. The tenant agrees to rent the property for a pre-determined period of time usually between one to three years. There might be an up-front consideration fee. The seller permits the buyer to lock in a monthly price tag for the property until it is cleared. This is a solution to settle on something that is suitable for you even if you are not in the right position financially to make an immediate offer. A rent purchase can make your rent money work for you instead of making your landlord rich.
Similar to a rent to own when it comes to a television you can have a rent to own for a piece of property. In cases like this a lot of sellers who are prepared to do this (and there are only a few) will want a non refundable down payment on the property, then you pay the landlord rent until such a time you are able to purchase the property. This is similar to a lease option too, only all that you pay is rent. The down payment is much less than an option and you also do not pay the taxes or the home loan, since you remain a tenant. The benefit of doing this is you get into your home with the intent of buying the property in the future. A rent to own contract, in which the money will go straight to the payment of the home, could be saving you plenty of money over the long haul.
This sort of agreement works well with those people who are new to the property market or have recently changed jobs. Furthermore, it is beneficial for those who needs to strengthen his or her credit rating or settle an obligation to qualify for any home purchase. One more benefit to a rent to buy situation is the fact that should you examine how much rent money is utilized per month towards the home price, even though it is only 25-50%, it is going to still be a great deal more money paid on the principal of the house than if you had obtained financing for it. If you look at the amount of money goes toward the principal payment of a home using a typical mortgage loan, you will see that almost all of your loan payment in the early stages is merely paying interest on the loan. The biggest advarnage about this is the fact that when it comes to a rent to own home, you get to live in the property you would like to purchase as you work towards improving your credit up.
The main down side to this is quite often the agreed upon price is the future price of the property. Should you have a house which is prized at $350,000, a rent to own value would seem closer to $370,000. That might look like a rip off, however considerably cheaper than a rent to own with a television where you could pay 2-3 times the price of the TV over a 5-year interval.
This kind of creative process of buying a rent to acquire property is starting to become more and more widely used since it produces a "Win - Win" scenario. The Buyer is able to get into a home with limited funds and credit rating, and the Seller is able to get a fair selling price for their home and get it sold faster.
Milan Doshi holds regular talks on the topic of investing in property. If you want to know what to invest in property, then come to his Property Intensive seminar organized by Wealth Mastery Academy that has helped opened the minds of many to the opportunities available in property investment.
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