I found a home in a very good neighbrhood where I live. However it is a rent to own 3bdrm, 2 ba, family room ,attached garage, nice fencened in yard. However as a single parent this is a bit on the steep side for me. Financially do you think I can afford it. I make 11.38 an hour working full time, I have a second job through a agency which pays 13-14.50 an hr I average about 32 hrs, I have two cars that I own (93, 98). I am currently a senior in college with a graduation date of 12/07 so income will increase shortly. currnetly I rent and pay 775. The downside is have three kids 9,8,2 I recieve child supp off and on, I don't have the best credit, and I recieve food stamps, have no savings. While looking at the brights side, I just want my kids to have better opportunities in life living in a decent neighborhood, exposure to good school, and a home to call their own. I am free to leave the agreement, but will lv w/o anything if I break the lease.
2006-12-05 01:39:52 · 6 answers · asked by nene 3 in Business & Finance ➔ Renting & Real Estate
Rent to own sometimes doesn't work out because usually the purchase price is much higher than the market and if after a year the price declines in the area, you will be overpaying. If they ask you to put a large down payment to move in that is not refundable, I suggest you don't do it. Instead, find a nice apartment in the nice school district and move in. Once you graduate, you will be in a better position to buy a condo or townhome. In most areas, housing prices is declining and that is another reason why I suggest you wait. Another thing is I suggest you buy a newer home even if it's smaller. Houses that are more than 5 year old will kill you with maintenance.
2006-12-05 01:52:14 · answer #1 · answered by spot 5 · 2⤊ 0⤋
Usually an owner of a house that is willing to go "rent to own" is targeting "at risk" buyers and has consequently jacked up the price of the house to make the risk worthwhile. If he really wanted to sell, he would put the property on the market at a fair price and get his money. But renting it to own means you will probably keep the property in good condition and will make your payments on time to stay in good standing. It's a good marketing strategy on his part to get the most rent and a renter that has a reason to make the payments on time. I suggest you meet with a real estate agent and look at other 1st time home buyer properties to see if the price and terms are a good deal or not. You may find out you can buy now using special programs for people like yourself and it may even be a nicer place than the one you are renting.
2006-12-05 06:49:17 · answer #2 · answered by larry r 3 · 0⤊ 0⤋
Mama,
First how much more is the lease ammount vs. your current rent. You also have to look at the bright side, if you can swing it .. at least for a year.. it might be tight at times.. but look at how much more you will be getting. A place for your children to truly call home. A chance for you to rebulid your credit. You are lucky that you own your cars... depending on what state you live in... that could even be saving insurance costs too.
Budget your self on what you acutally make from your jobs.. I too get child support here and there so Dont count on it... That way when it does come.. it can be for extra stuff.. or save yourself from a bill here and there.
You get food stamps.. and that ammount will increase.. because your bills increased some... They took mines away.. saying I make too much.. I miss them!!! SO you are saving money there also.
I say go for it! and in time if you do some fixing up. when you are ready you can sell / and or rent for income and get a better one! GOOD LUCK!!
2006-12-05 01:49:59 · answer #3 · answered by c_leoo 4 · 0⤊ 0⤋
I did the same thing. But, you have to live somewhere, right? I did the math (I live in a small town, so forgive the price). I paid $200 a month for rent, $300 hundred to own (rent to own). I hunkered down and bought nothing else for a while. I would have shelled out $18,000 in 7.5 yrs just renting. It's worth it...........it really is. If you can make one (extra) payment towards the principle only and not the interest, you can have the house paid for in almost half the time. Like I said, my town is small and the economy is different, but I managed to pay the house off in 5 yrs. (I live in a very boring place....population 412, but no crime and that was the clincher). For the kids to have a better life, it's worth it.
2006-12-05 01:49:07 · answer #4 · answered by FireBug 5 · 0⤊ 0⤋
Even your mom has a funds. with a view to avert her from taking better than her honest share, draw up an settlement approximately lease and placed it in writing. in case you're to place some thing in direction of utilities, write it down. Then save on with it to the letter, and every time she needs greater, whip out your settlement. I agree which you're ambitious, so i'm thinking what the vast deal approximately shifting out is. I lived with 5 different roomies in college with a view to have the means to arise with the money for to flow - there are continually rooming properties close to campus. as a substitute of four yrs it ought to take you 6 to get your degree, and there are student loans. in case you progression into city you may sell the automobile, and take public delivery or journey a motorbike. there are the thank you to end what you elect, so discover them and do it.
2016-10-04 21:53:46 · answer #5 · answered by kuhlmann 4 · 0⤊ 0⤋
there is a place that will help you with this and it can help with the down and the closing cost too.just look at some of the places that can help with the first time buyer and maybe you can go from there.
it's always better to have something permanent to live for you and your kids.
good luck and happy holidays
2006-12-05 01:48:20 · answer #6 · answered by DENISE 6 · 0⤊ 0⤋