Rent to buy your own home is the simply way to get started in the property market and own your own home when you havent got a deposit, or you are unable to get finance from the bank.
Many rent to own buyers are able to immediately enjoy the benefits of owning their own home immediately, and start moving a family in to create a permanent family home.
Others have enjoyed the ability to start on the investment path by renovating their rent to buy homes and add additionally value prior to future settlement. This is turn means that when the new rent own buyers in turn settle their home in the future they have not only gained additionally equity from the renovation but also receive the capital gains associated with the renovations over time.
With higher student loans, and more people renting houses, it is not supprising that rent to own homes are on the increase. Its important that potentially rent to buy tenants take steps to understand their commitments to weekly rents and make sure they can afford the rent on an ongoing basis.
During different property cycles , rent to buy homes have different advantages. when the market is low they tend to be able to buy at a lower rental but the potential capital growth over the long term is a lot greater.
When the market is high it is harder to get a cheaper price as the vendor has the option to sell reasonably easily on the open market, however the tenant buyer has the ability to make quicker capital gains especially if they are renovating.
Its important to understand that as with all property the negotiation must be a win/win situation for both the rent to buy purchaser and the rent to buy seller.
Ensure you have valuations andf are aware of what the market value is , and what extra percentage you may be paying for the the rent to buy option.
Long term approaches with property so its important for all parties to work together and not get greedy.
If you are unsure you should get a consultant to present & explain the figures so you are fully aware of your commitments as a rent to buy purchaser.
