You’ve just bought 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. Buyers come along, but they don’t have enough money saved up for a deposit, or their credit isn’t good enough. How will you ever sell this property?
For many, the rent-to-own home may be the best alternative. Also named a lease-to-own home, the method operates similar to a automobile lease: Tenants pay a certain sum every month to live in the house, and at the end of a set point generally inside 3 years they receive 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 tenants and vendors want to be really clear about the contract they mark up before they agree to this arrangement. Renting to own has advantages and disadvantages for both parties. Vendors who have already purchased a new house 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 best option. Buyers who can’t yet afford a house may be able to obtain 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 costly Rent To Own Investor middleman.