‘For Rent!’ Your heart sinks whenever you see this sign. Exhausted by the scenario, you want to stop renting today. You have worked hard, but your credit score does not allow you to own a beautiful piece of land and a home on top. Don’t worry. Today we will enlighten you with a new concept, rent-to-own homes.
According to multiple Body Corporate Services, with the current economic conditions, the real estate business is trending downwards. The ‘For Sale’ signs are converting into ‘For Rent’ because of less purchasing power. Many homeowners are trying to wait out the bad real estate period. They know that it is getting difficult to get the price they wish to sell their property for.
Hence comes the concept of rent to own homes. It is a type of agreement/ contract where you agree to lease the house before gaining complete ownership of the property. During this period; the seller agrees to keep a designated amount of money from each rental payment which later can be considered the principal amount. For sellers, rent to own homes is considered feasible during the slow market days. The sellers exhaust this option when they want to keep everything running in a stagnant, dull estate market.
Candidates Who Should Opt For Rent to Own Homes
Aspiring Homeowners
All those aspiring homeowners who wish to have a feel of home but are not financially ready to buy a house in Perth can avail this opportunity. These agreements help you stabilize your finances, improve your credit score and save money with the help of a down payment or monthly rental installments to ‘lock in’ the house of your dreams. The option of giving a certain amount of rent for the principal amount of the home always helps you build the equity.
Going to be Homeowners
Apart from that, there is another group of homeowners who want to buy a house in Perth but are scared of the responsibilities that come from buying a home in Perth, like mowing the lawn, home maintenance, etc. For all such people, rent to own homes allows them to enjoy the home and purchase it if they like the option.
Down Payment
The buyer doesn’t have enough money for the down payment.
Credit Score
The credit score of the buyer is not too high.
Candidates Who Qualify For Rent to Own Homes
The process of rent to own homes is similar to that of rental programs. The owner of the property will get a credit check from the buyer. The seller wants to make sure that the buyer will be able to pay extra monthly rents, hence a credit check and employee verification.
The buyer himself should also check his credentials before committing to any such rent-to-own agreement. What if the buyer reaches the end term to find out that his credit score and income are insufficient to apply for a mortgage? So, sit down and figure out what will be the course of action to qualify for a mortgage loan and rent-to-own properties.
Stop Renting Perth
Once you try to figure out what can be done to stop renting and buy a home in Perth, you will find a rent-to-own home option. Companies like stop renting Perth give you complete guidance on the whole process. They will help you make the entire process of becoming a homeowner more affordable.
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