Don’t Get Caught With a Home You Can’t Sell – Offer Rent To Own Terms
You’ve just purchased the home of your dreams, signed the contract and packed the moving van and you’re all set, right? Not if you haven’t sold your current home first. So you place it on the market and you wait. And wait. And wait. Purchasers come along, but they don’t have enough cash saved up for a deposit, or their credit rating isn’t good enough. How will you ever sell this property?
For many, the rent-to-own home may be the best option. Likewise called a lease-to-own house, the process works similar to a auto lease: Renters pay a certain amount every month to live in the house, and at the end of a set period generally inside three years they receive the choice to buy the house. Every month of rent they pay is income for the seller, while a percentage of it goes toward a down payment on finally buying the property.
Both tenants and vendors need to be very clear about the contract they mark up before they agree to this arrangement. Renting to own has rewards and disadvantages for both parties. Vendors who have already bought a new home will have relief from paying two mortgage payments at once, and in a slow housing market with many properties for sale, this may be their greatest option. Buyers who can’t yet afford a home may be able to buy one more quickly.
Visit www.DIYRentToBuyHouses.com.au to read how Dallas & Kerrie Kelso can show anyone how to setup their own Rent To Own deal without involving the overpriced Rent To Own Investor middleman.
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