I was trying to research the option to rent to own a home, and shockingly enough, I can't find much information on the process online. One would think that there would be a ton of information out there in cyberspace. What are some of the benefits and downfalls of rent to own home purchasing contracts? Do you use a real estate agent to do this?
I personally have no experience with rent-to-own homes but in my area, there are a lot of options for owning a home and one of them is the rent-to-own option. Most of these rent to own homes go through real estate companies and most of the paper works are also taken cared of by their agents. I have had friends who were able to have their own houses through this process. According to them, it was a good option for them because they were paying like they usually would with rental properties. They didn't feel how time went by and one thing they knew, they already owned the property.
There are villages here that offer rent-to-own schemes. However, I have noticed that such villages have small lots that have 150 square meters as the biggest and down ot 50 square as the smallest. Those housing projects are geared for the lower class of society. But I have known several who availed of those rent-to-own that didn't fulfill their dream because their contract was aborted and their payments were forfeited. Such schemes charge a higher interest rate than the normal mortgage rate.
I did a basic Google search and found a whole lot of things that looked scammy to me, but I think I typed in "rent to own programs" which might be the problem.
@Rosyrain, rent to own scheme seemed to have been invented just in the recent decades. And from the looks of it, that scheme will not prosper much. The come on is that the prospective buyer can do away with the bank loan - everyone knows that to get a bank loan is like entering the eye of the needle. That means easy financing in terms of application. You get the house, you pay the installments not knowing that you are paying so much for the interest. That would make you poorer than when you started that's why rent to own houses are normally repossessed by the developer.
I don't know much about this but I've heard of similar situations, even with properties. The best thing is to get as much advice on whatever venture you undertake because complications may develop along the way. Make sure there's an acceptable contract or a guarantee that once you meet certain criteria, you will indeed get to buy/own the home. Always do as much research.
Many of the Hines I have looked at are rent to own buy the actual owner so I would be nervous about getting scammed. I think I will get a lawyer if I decide to go this route because I would hate to pay money toward a down payment and then get that money taken from me.
We just came back from a brief vacation in a high class resort with a golf course, huge swimming pool and also a beach. The houses there are so expensive and even the accommodation is very steep at $300 per night. We just sampled the classy living of the rich and famous but I guess it is not practical to buy a property there. The house we stayed in is owned by a certain Hans who has 5 houses there. And he bought that for investment purposes but renting it out to the public. He said it is like a rent to own scheme because the rental he gets pay for the installments of those houses.
The idea of renting to own here in the US is that you make a deal with the owner of the house that you will rent it for a specific period of time and part of the rent goes toward the down payment of the house. This way you can live in the house and get your finances in order and then purchase it at the end of the rental contract.