Seems a little too good to be true, like most things.
2007-03-06 08:36:48 · 6 answers · asked by Year of the Monkey 5 in Business & Finance ➔ Renting & Real Estate
I know several people who are renting to own. It's the best of both worlds. It's great for the buyer who might never be able to save enough for a down payment and it's great for the seller because he has a steady monthly income. If the person doing the rent to own fails to make payments, the seller can evict them and do it all again - starting from scratch.
As long as you can make the payments, there is nothing wrong with it and no, it is not too good to be true.
2007-03-06 12:31:39 · answer #1 · answered by amishpantry 3 · 0⤊ 0⤋
What does it mean too good to be true? Rent to own option is usually an incentive that landlords throw in to get people to rent the place or to sell it. It could be good option it could be not. Depends on what you were offered. For example someone offers you to rent the place for a 1000 a month and say 75 every month goes towards a down payment on this place should you decide to buy it. To figure out if this is a good idea, first of all think would you just rent this place for a 1000 per month without any options? If the answer is yes, then you lose nothing and you may as well take the option, you don't have to buy if you don't want to. If you could rent similar place for 900 elsewhere, then this option is worthless and you don't need it. Sometimes the option guarantess certain price within certain time frame should you decide to purchase the place. Then the tenant gets protection from price inflation in real estate market.
I would say that in many cases rent-to-own is actually one of those win-win propositions. The landlord rents his/her property to someone who will probably be a tenant for a long time, when tenant saves enough money he/she buys the place without incurring cost of another move, and other things. Landlord saves on real estate commissions. Without more details it's hard to say about each particular case, but if you have hard time saving money, this could be one of the few reasonable paths to home ownership.
2007-03-06 08:55:32 · answer #2 · answered by Alexander K 3 · 0⤊ 0⤋
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2016-07-19 13:57:28 · answer #3 · answered by Carol 3 · 0⤊ 0⤋
When you rent to own, you are giving up your right to negotiate the price of a home, and if you do not buy it you have paid higher rent then you would have in a regular rental. Many owners are willing to allow this because they are in a win win situation. They get the asking price for the home, or they get very high rent payments for a few years.
This being said, if you are never going to be able to qualify for a loan, and could never save money on your own, this is a viable option toward home ownership. It is just the least financially sound way to go about it.
2007-03-06 08:54:57 · answer #4 · answered by Ron B 3 · 0⤊ 0⤋
If you have bad credit and feel that you would not be able to secure a loan by your self then rent to own is a good option.
2007-03-06 08:40:30 · answer #5 · answered by buzyb 4 · 0⤊ 1⤋
Rent-To-Own Home - http://RentToOwnHome.uzaev.com/?eDZi
2016-07-11 23:22:46 · answer #6 · answered by Madalene 3 · 0⤊ 0⤋