Rent-To-Own Property

If you are worried that you income would never be enough for your next home, if you think you might not have access to mortgage finance, you can try a rent to own property. Rent to own is a real estate term, used to describe a contract between a seller and a renter, this contract stipulates that a renter is to pay certain amount of money as rent in lieu of a final or out-right purchase of a chosen property. Meaning the renter can stay in the property for a specific time paying rent but having the option to buy the property at a future time. The rent therefore will not be the market value of rents in that community. It will be much higher by a percentage. For instance 20% higher than the market value, which will make the renter to pay 120% instead of the 100% others are paying in that vicinity. The extra 20% will be targeted towards installment payment.

With this agreement you can have the joy of saving towards the purchase of your new home. While you and your family can actually enjoy the ambiance of the new vicinity you wouldn't have been able to enjoy.
The buyer can in the long run enjoy the capital appreciation of his new home, since he would be buying at cheaper rate years back. Another advantage is that the renter rental repayment may be fixed for the whole tenor of lease, thereby he would not be affected by the changes in rent.

Another merit of RTO is that you have ample time to make up your mind if you would buy the house or not. Its also affords you the opportunity to know the extent of the repairs and maintenance expenses you would incur on the property before purchasing it. It builds the credit worth of the buyer as he monthly deposit his rent to the seller. It builds the income of the seller.

Problems with RTO:

If in the long run you decide not to buy the home, you may forfeit the total sum you paid as well as the installment payments. This is a big disadvantage. A disadvantage to the seller is that the buyer can change his mind. So if you want to have a glimpse of pleasure a while as you build up your finances to buy a new home think about getting a rent to own property.

If you are thinking of buying a new home you need to check our exclusive homes in Litchfield Park AZ Realty Don't forget to check-out Maricopa AZ Homes