Renting to own is an easy and convenient way to become a homeowner. Want to know more about this homeownership option and why you should consider acquiring a home in Mississauga?
- 1 What is The Process of Renting to Own a Home?
- 2 What Are The Benefits of a Rent to Own Agreement?
- 3 1. Build a good credit score
- 4 1. Forget about the hassles of moving
- 5 2. Get to know the ins and outs of the home before buying
- 6 3. Renovate your home
- 7 4. Buy the home before the lease period lapses
- 8 5. Lock in the current purchase price
- 9 6. Own your dream home whenever you want
- 10 Final Words
What is The Process of Renting to Own a Home?
A rent to own agreement is whereby you rent a home for a specified period (lease period), after which you get to buy the home.
During the lease period, you pay rent, part of which is set aside to be part of the down payment at the end of the lease period. That period can be, say 2 to 3 years. The rent you pay will depend on factors such as the current market rate and the location of the house.
What Are The Benefits of a Rent to Own Agreement?
Apart from being able to save up for a down payment, below are 7 reasons why you should try to get rent to own homes Mississauga:
1. Build a good credit score
If you have been suffering the consequences of a bad credit score, a rent to own agreement can help you back up. When you get into such a deal, you will be making consistent monthly payments which will help you gain a good credit standing.
1. Forget about the hassles of moving
Do you hate moving houses every other year? Then a rent to own agreement will save you the headache of moving. Changing houses is also very costly. Once the lease period is over, all you need to do is purchase the home.
2. Get to know the ins and outs of the home before buying
Most of the time, when you are buying a home, some sellers will hide serious structural defects and convince you that your home is in perfect condition. You get to learn about the unpleasant side of your purchase once you start living in your house.
The benefit of getting into a rent to own agreement is that you can get to know the good, bad, and the ugly of a home when you are living in it. When the time comes to make a purchase, you will be fully aware of what you are getting into.
3. Renovate your home
Since you will eventually acquire legal ownership of your home, you are free to fine-tune it to suit your needs. You can make renovations to its rooms as you like!
4. Buy the home before the lease period lapses
Do you want to own your home faster? You have the option to do that. In some instances, you may be required to rent for at least a year before you can buy your home.
All you need to do is to ensure that you have a good credit score and have saved up enough down payment.
5. Lock in the current purchase price
This is the biggest of all the gains of getting into a rent to own agreement.
If you are buying a home in a market with increasing home prices, buyers can get into an agreement to purchase a home at the current price,
That means that if the price of the house goes up in future, you benefit from owning a house which is valued at a much higher price than you purchased it.
If prices fall, you can decide back out of the agreement but it will depend on how much you have already paid.
6. Own your dream home whenever you want
Sometimes, you see your dream home buy you cannot afford a mortgage to grab it in time. With a rent to own agreement, you can move into your home sooner and lock it down before someone else does.
Owning a home is a process that requires a heavy financial investment. At times, you may not have that money but you desire to own a home sooner. A rent to own agreement is a stress-free way to own a home while you work within your budget.
Even better, this kind of agreement helps you to build your credit score.
When you are choosing the best place to rent a home for future ownership, a secure and affordable neighbourhood with all the necessary amenities like schools, shopping centres, and hospitals should be top of your list.