Dreams of owning a house due to financial constraints. But nowadays there are several options that you can try, if you want to own a house of your own. Just imagine about the benefits of having a house of your own. In your house, you will always feel secure and apart from that there is also a chance of gaining huge profit if you intend to sell it in the future. The main crux is, not to lose hope as there is always an alternative.
Rent to buy or rent to own options are very common these days. When you agree to pay rent for a set period of time, and after the end of this period you can avail the option of buying the property from the owner. This is known as rent-to-own home. Once you enter into such an agreement, a part of the rent will be taken as a deposit at the time of purchase. So, in case with time you develop any kind of likeness towards the property, you are sure to get a special offer. This also affirms that the landlord cannot play any game with the property since a portion of your rent has already been secured.
A rent-to-own house is sometimes also known as lease-to-house. The process works somewhat similar to a car lease. Renters will have to pay some amount every month, and after a set period of time, usually within 3 to 4 years- they get the chance to buy the house. It is very important that both the seller and renter need to be very lucid about the conditions of the contract that they have signed.
An outright purchase of a property causes extensive down payments, but a rent to own property demands a minimum amount of deposit, which lessens the probability of applying for a bank loan. Sometimes people fail in creating a good history, which consequently might be a hindrance in securing loans.
But with this alternative, all you need is a small amount of cash in hand as deposit. After this, you need to also prove that you can regularly pay the required rent. Once all these hurdles are passed, you can move into your new house.