RentToOwn-HouseFinder.com
Im interested in a rent to own option to purchase my first home...???
what are your opinions about doing this??? and best locations to do this??? serious answers only please
Public Comments
- The lease option would require a significant down payment just like buying the home. Leasing only requires the 1st month rent and1 month deposit, usually. The advantage with the option: it would allow you to accumulate a portion of your monthly payment towards credit applied towards the total purchase price when you get ready to convert the contract to a purchase contract (usually after 1 year). But then once you decide to excercise the option to buy, you will automatically become responsible for the property taxes, insurance up to that point and will also have to have money for closing costs at that point. You would also be responsible for any repairs that need to be done unless you specifically make sure it is written to the contrary in your contract. You will benefit best if you bargain with the owner to a written agreement to cut down on initial deposit, taxes, insurance, repair,s and closing costs ahead of time before you sign the papers for "Lease option". Also make sure you get at least $50 credit every month towards your purchase price. Good Luck.
- I think the rent to own option is a SUCKER BET. It can be arranged in a number of ways, but the bottom line is that you aren't given title to the house until the seller has been paid in full. So, if you have an agreement to rent to own for 30 years and want to move (or die) in that 30 years you can't sell (or give to your heirs) your interest in the property because you don't have title to it. plus, there is no tax advantage. And, if you are renting to own you are also taking care of all of the maintenance too! The other option that everyone else chooses is to get a loan. When you get a loan on a house, you may only own 1% (or less) of the property when you buy it, but the entire house is titled in your name allowing you to sell and give it to your heirs. You also get to deduct the interest from your taxes.
