Advantages of Rent to Own Homes
Renters and sellers have their share in the benefits if rent to own homes.By choosing rent to own there are many positive achievements that come in. Explained the following paragraphs are some of the advantages of rent to own homes.
A chance to know the condition of the house he wants to buy is the number one benefit to the renter. The renter will be able to know what needs to be changed in the house before they permanently acquire it.When the potential buyer find the conditions unbearable they have an option of terminating the agreement. By occupying the house the potential buyer gets a rough idea of how much the repairs will cost. The knowledge of the environment is the other chance the buyer will have.
The other benefit is that the price of the property remains the same throughout the contract.The terms of purchase being the same throughout means neither party has powers to do alterations. No matter what the terms are no one can make changes. Even with a decline in the value of the home the buyer has to pay the amount agreed in the contract.When there is a decline in prices of homes it becomes profitable to the seller as the agreement cannot be redrawn.
Rent to own homes are price sensitive to seller as well as it is to buyers. There is no need for a down payment by the buyer. Rental deposits will be expected to be paid by the renter.Where you find no tax amount required rent insurance will be payable which is cheaper than homeowner insurance. By not paying taxes the buyer will save some money towards the purchase of the home.The landlord does not need to incur the cost of advertising their property.The seller has somebody who can purchase the home. Rent to own homes are also cheaper to seller because they eliminate real estate agents. Property agents have to be paid a percentage of the proceeds from the sale; this can be avoided with rent to own method.
Finally everything that has advantages will also have disadvantages. The renter will lose everything that he has paid for if he decides to discontinue the agreement. The buyer does not have any rights on the property until they have purchased. The fact that the price agreed does not change may be a blow to the buyer when the value of the home declines with time. The seller may not enjoy the benefits because of the slow modes of payment. The owner is disadvantaged because they are not certain that the renter will purchase the home.When the value appreciates with time the seller will suffer losses because he cannot make changes to what has been agreed upon.