Many people are always asking me about Rent to own, both from the side of the investor and from the side of the renter or future house owner.
As an investor there is lots of money to be made, the returns are incredible. It is a way to make really good money and at the same time avoid some of the tenant laws. The law is still a bit unclear whether the people living in the house are considered tenants.
As a renter, is seems like a quick way to get to the house that you would like, when you think you don’t qualify for the financing or if you don’t have all of the down payment. Sometimes it is just a matter of finding the right realtor or mortgage broker. If you are thinking of becoming a renter in a rent to own situation, there are a few points to keep in mind:
- I caution people that you have to do your research on the person or company that you are renting or purchasing from. You want to make sure that they will be able to hold on to the house while you build equity. If they end up losing the house are you considered only a tenant.
- You have to make sure that you will be able to repair your credit, obtain the downpayment or have employment to qualify for the mortgage in the time frame agreed to. Or you will lose the money that you have built up or given.
- You have to calculate the cost of getting into a rent to own versus just waiting a bit longer to see if you will qualify under normal conditions.
- You need to be sure that this is the house that you would like to purchase in a couple of years.
- You need to make sure that the house will be worth more when you take over it. What will happen if it is worth less, will the bank give you a mortgage?
These are just some things to consider, when looking into getting a rent to own property.
If you are thinking of purchasing properties are investments for rent to own, or if you think this might be the only way to get your own home, call us Today at 416-225-2290, we will guide you to make the right decision for you and your family.
As an investor there is lots of money to be made, the returns are incredible. It is a way to make really good money and at the same time avoid some of the tenant laws. The law is still a bit unclear whether the people living in the house are considered tenants.
As a renter, is seems like a quick way to get to the house that you would like, when you think you don’t qualify for the financing or if you don’t have all of the down payment. Sometimes it is just a matter of finding the right realtor or mortgage broker. If you are thinking of becoming a renter in a rent to own situation, there are a few points to keep in mind:
- I caution people that you have to do your research on the person or company that you are renting or purchasing from. You want to make sure that they will be able to hold on to the house while you build equity. If they end up losing the house are you considered only a tenant.
- You have to make sure that you will be able to repair your credit, obtain the downpayment or have employment to qualify for the mortgage in the time frame agreed to. Or you will lose the money that you have built up or given.
- You have to calculate the cost of getting into a rent to own versus just waiting a bit longer to see if you will qualify under normal conditions.
- You need to be sure that this is the house that you would like to purchase in a couple of years.
- You need to make sure that the house will be worth more when you take over it. What will happen if it is worth less, will the bank give you a mortgage?
These are just some things to consider, when looking into getting a rent to own property.
If you are thinking of purchasing properties are investments for rent to own, or if you think this might be the only way to get your own home, call us Today at 416-225-2290, we will guide you to make the right decision for you and your family.
1 comment:
Your tips are really valuable for the tenants.I think it will definitely help them to decide what to do.I like your post very much,thanks for sharing.
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