RENT TO OWN A HOME: IS IT FOR YOU?

article 12 atopBY CONSTANTIN CHERKASKIY
The Pros of Rent to Own Houses

You found the perfect house and you’re ready to commit to the neighborhood. But if you don’t have good credit or enough money for a down payment, you could find yourself out of luck – unless you sign a rent-to-own deal with the seller.

In a rent-to-own or lease option deal, the tenant pays for the privilege of having the first chance to buy the home from the seller at the end of the lease, which usually lasts three years. The tenant and the owner agree on a purchase price at the beginning of the lease and the tenant pays the owner an option fee of 1 to 5 percent of the purchase price. The seller credits the tenant with the fee against the price of the home when they finalize the sale at closing.

Sellers – or landlords – increase their pool of eligible buyers by including those who may not qualify for a loan right now but will in the future. Plus, the seller earns market rent – plus a little extra (called the rent premium) – during the course of the lease. Sellers also don’t have to pay a real estate agent fee, saving thousands of dollars. They also eliminate the hassles of endless showings. Tenants benefit because they get extra time to increase their savings and improve credit scores. Sellers help tenants save by crediting both the option fee and the rent premium at closing. Plus, they get upside protection – a terrific benefit if prices increase significantly over the course of the lease term – and they don’t have to move twice.

While somewhat unorthodox, renting to own offers the right parties significant advantages. Speak with an attorney to decide if renting to own a home is right for you. This article is sponsored by Constantin Cherkaskiy your Rentto – Own expert in Greater Montreal and around.

Little down payment Self Employed
Can’t qualify for mortgage?
Just relocated from another Province
Recent Bankruptcy Good, Bad or no Credit?
Divorce Newcomer to Canada
No Problem!

article 12 botCONSTANTIN CHERKASKIY
FOUNDER “REIC&PMG” (REAL ESTATE INVESTMENT, COACHING & PROPERTY MANAGEMENT GROUP)
CEO “K.E.CH. INC”
(514) 570-5940
info@reic-pmg.com
http://www.reic-pmg.com

To get more information regarding Real Estate Integrated Marketing system please review www.hlmt.ca, or/and H&L Facebook, or/and H&L Twitter or/and H&L LinkedIn
Terms of Use:
Articles are provided free of charge. Credit of usage must be attributed to Homes And Land Demeurea & Domaines .Any source/sponsor of the information quoted in the text must also be identified as presented. Images are only to be used with corresponding editorial copy. Usage of Homes and Land of Montreal articles constitutes your acceptance of these terms and an agreement between you and Homes and Land of Montreal.
Advertisements