2007-03-07 15:05:04 · 5 answers · asked by sokrates 4 in Business & Finance ➔ Renting & Real Estate
It is not a good deal if you have bad credit and the Owner charges you a large downpayment to 'hold' until you are in a position to purchase. Because, if you're not in a position to purchase within a year or so, and you want to move, the Owner will keep that money.
Rent without any strings attached and pay monthly with a check so that you can see when it is cashed. When a mortgage company wants a Verification of Rent from the landlord, that you have proof of payments on time in case you wind up with a landlord who gets 'stuck on stupid' when you need this type of reports. Receipts are not as acceptable anymore because lenders realize that renters can get a receipt book and fill it out themselves.
2007-03-07 20:45:55 · answer #1 · answered by Venita Peyton 6 · 0⤊ 0⤋
Renting to own a home is a great idea under only one condition: You have bad credit, and honestly want to turn your financial problems around.
If you have good credit, and a good job, you are better off just getting a real mortgage with a low rate.
Most rent-to-own contracts are structured HIGHLY in favor of the landlord. Only a portion of your payments every month go to your purchase price, and if you break the lease, they will keep your entire deposit and you are left with nothing. On the plus side, the sale price is locked in at the beginning of the contract, so at the end, you might be getting the property below market value.
If you are sure you can pay every month, and follow all the other details of the lease, then you are safe. Remember though, it will be YOUR house. You will be responsible for taxes, insurance, repairs, maintenance, etc. Your landlord will ONLY be collecting money. If you have any doubts about being able to meet all of the obligations of your lease, it would be better to find another way.
2007-03-07 16:01:21 · answer #2 · answered by ? 5 · 0⤊ 0⤋
yes definitely --- money that just goes to rent a place --- only goes to the real estate agent ; who takes his percentage out ; and in turn the rest goes to the landlord --- who may when it suits them ( or according to a lease agreement ) can ask you to leave --- and then you have to battle find new accommodation ;which could be dearer and not necessarily what or indeed where you want to live --- in a nutshell rent money is dead money (literally thrown away ) where the same money can be far better used to buy your own property and do what you like in it and move from it when you desire --- and the bottom line is --- owning real estate is an investment. good luck.
2007-03-07 15:24:04 · answer #3 · answered by bill g 7 · 0⤊ 0⤋
Sorry, but no I don't. By renting you are only making some other Joe rich! Seriously, the money you spend on rent can be going towards your own mortgage! With Interest rate being as low as it is, there should be no reason why you shouldn't be sleeping in your own bed inside your own house.
Check with your local realtor. They can work wonders these days.(good luck)
2007-03-07 15:16:29 · answer #4 · answered by mom of a boy and girl 5 · 0⤊ 1⤋
It is sometimes good cuz anyways you need to pay the taxes and stuff. If you mortgage a house by the time you pay it fully you would have paid double the price.
I think we should only buy the house only after saving enough money. But we want to make the bank richer.
2007-03-07 15:40:34 · answer #5 · answered by Xtrax 4 · 0⤊ 0⤋