Rent-to-own companies offer a unique opportunity for individuals to purchase a home without the traditional financial commitment of a mortgage. This type of agreement allows renters to pay a monthly rent, with a portion of that rent applied as a credit towards the purchase price of the home. However, as with any real estate transaction, there are both pros and cons to purchasing a home through a rent-to-own company.
Pros & Cons of Purchasing a Home Through a Rent-to-Own Company
Pros
One of the biggest pros of renting-to-own through a company is the ability for renters to build credit and save for a down payment while living in the home they hope to purchase. This can make it easier for renters to qualify for a traditional mortgage in the future. Additionally, rent-to-own agreements can provide a sense of stability, as renters have the option to purchase the property at the end of the lease rather than having to move again.
Another benefit of rent-to-own companies is that they often provide legal representation and support throughout the process, which can be particularly helpful for first-time home buyers who may not be familiar with the legalities of purchasing a home.
Another benefit of renting to own is that, when it comes time to purchase the home, the purchase price is often lower than market value. It’s important for renters to thoroughly research and compare prices before entering into a rent-to-own agreement.
Finally, an added benefit is the fact that when someone enters a rent to home agreement, the purchase price is pre-determined so at the end of the term a renter knows exactly what they’re paying. If they wait, future home prices may be higher. Additionally, the rent-to-own term allows the renters to ‘test’ the house and neighbourhood without the obligation of purchasing. If they don’t like either, they can move out at the end of the term.
Cons
There are also some cons to consider when purchasing a home through a rent-to-own company. One of the biggest cons is that if the renter decides not to purchase the home at the end of the lease period, any option fee or equity will typically be forfeited.
Purchase a Home Through JAAG Properties
Overall, purchasing a home through a rent-to-own company can be a great option for individuals who are not yet financially ready to purchase a home outright. However, it is important to weigh the pros and cons and fully understand the terms and conditions before entering into an agreement. It is also advisable to seek legal or financial advice to make sure the agreement aligns with your goals and financial situation.
Our Rent to Home Solution makes it easy to get your foot into the housing market, with our program offering agreements that are tailored to our clients needs. With a no-cost application process and no penalties for breaking agreements, you can start on the path to homeownership with flexibility and peace of mind.
If you are interested in purchasing a home through a rent-to-own company, get in touch with the experts at JAAG Properties.
