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 sufficient money saved up for a deposit, or their credit rating isn’t good enough. How will you ever sell this house?
For many, the rent-to-own property may be the best alternative. Likewise called a lease-to-own property, the process functions similar to a automobile lease: Renters pay a certain sum every month to live in the house, and at the end of a set point generally inside three years they have the option to buy the house. Every month of rent they pay is income for the vendor, while a portion of it goes toward a down payment on finally purchasing the home.
Both renters and sellers 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. Sellers who have already bought a new house will have relief from paying two mortgage payments at once, and in a slow housing market with many homes for sale, this may be their greatest option. Buyers who can’t yet afford a home may be able to get one more quickly.
Visit www.DIYRentToBuyHouses.com.au to read how Dallas & Kerrie Kelso can show anyone how to setup their own Rent To Buy deal without involving the overpriced Rent To Own Investor middleman.
