“Rent to own” is familiar for most of us. Although the buyer normally ends up paying double what the merchandise is actually worth, places such as Prime Time and Rent a Center have built an empire with rent to own merchandise. Most of us prefer to avoid going this route while this may be great for those who have bad credit. It is including homes, especially if you are buying a home on a rent to own basis.
Rent to own proves to be an expensive way for someone to buy something they intend to keep even though maybe good for a short period of time. For example, Rent to own merchandise may sound quite compelling at a few dollars a week. Normally, the agreement is around 15 – 20 months, which is where the company makes their money. The total amount quickly adds up to nearly twice the cost of the item although you may be paying just a few dollars a week.
You’ll also have to pay applicable sales tax as well Along with paying rent. Rent to own real estate has its disadvantages, just like merchandise. You’ll normally end up paying back a lot more than you would with a mortgage even though it can be great for those with not so great credit. If you decided to get a house on a rent to own basis, you’ll still have to pay back your lender with a mortgage although that amount won’t be nearly as high as it would.
Rent to own houses are put up on the market by the owner, in most cases. You’ll deal directly with the owner this way. Starting out as a traditional lease, it proceed to a rent to own basis if you decide you want to keep the home. Normally, it will be quite a few years for you and the owner to work out an arrangement. In order to make a hefty profit, some owners are very flexible and will work with you just to get the price they want for their home, while others will charge you quite a bit more.
Rent to own would be your next best option If you have bad credit and can’t get approved for a mortgage. For many it’s a better alternative than an apartment Although some don’t like to do it due to the price. Instead of just paying rent, with rent to own houses you are paying money towards the home. You should make sure to double check with the owner before you agree or commit to anything even though in some cases this is fine. You’ll know how much you’ll be paying for the home and for how long with this way.