Rent To Own Homes Canada
Rent to Own/Lease option is becoming extremely popular. Renters know that they make landlords rich. When the term is done, they walk away with nothing. Sometimes they even live at places which are sub-standard, but still have to pay the market rent.
You can buy Real Estate in a very creative manner. Most buyers are becoming sophisticated nowadays. With a Rent to Own/Lease option agreement, you pay your monthly rent, and a portion of the rent goes towards your down payment for the house purchase. Both parties can have huge benefits with proper education and mentoring.
There's no need to wait until you've saved up enough of a down payment, or until your credit rating is repaired. You can build up your down payment while living in the home you want to buy. It will feel like your home before you even own it. Time is utilized in favor of both parties to create a win/win situation. It gives the tenant buyer time to save a down payment and heal their credit rating. For the Real Estate investor it is guaranteed profit as well as positive cash flow without the headache of regular tenants.
With a Rent to Own/Lease option home, you can stop being a tenant and become a tenant buyer who has option to buy the property at a pre-determined price. Now you are saving and building equity at the same time.
Even if you have bad credit or not enough cash for a down payment, a Rent to Own/Lease option program is for you to take advantage of a home-owning opportunity. It allows you to make a proactive step and own a home early.
Rent to Own/Lease option buyers and sellers enter into a lease agreement for a fixed period mutually agreed upon depending upon their circumstances. At the conclusion of the lease, the buyer will have the option to purchase the home from the Real Estate investor.
The purchase price will be determined before the Rent to Own/Lease option lease agreement is finalized and signed by both buyer and seller. This price is fixed and will not change after negotiated and agreed upon by both parties.
In addition to the down payment credit, the Seller may offer monthly rent credits. A rent credit is a portion of the monthly lease payment that is applied to the overall purchase price if and when the Rent to Own/Lease option purchase is executed at the end of the lease. The amount of the rent credit and the down payment will vary by each seller and property.
Before entering into a Rent to Own/Lease option transaction, tenant-buyers should consult with their Real Estate Lawyer and Mortgage Brokers. Mortgage Brokers can provide mortgage guidelines including a minimum beacon score, a maximum debt-to-income ratio and a minimum required down-payment. With these objectives in mind, if necessary, credit improvement consultants and financial advisors can help you to raise your credit score and build up your savings.
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