If someone assert to you that you could get onto the property ladder and not have to go seeking for a mortgage or pay a big deposit, would you believe them? Actually, it’s potential to procure property this mode whenever you choose to rent to buy.
The benefits of renting to buy
Listed here are some of the many benefits of renting to buy
a. There is no mortgage to take out initially; b. From moving into the property you have ownership; c. Exceptionally low start-up costs, usually roughly 2% of the property price; d. We don’t have a segment in the assets, you have 100%; e. If you develop equity in it and you determine to purchase, this equity is yours; f. Your rent is deducted from the price you pay; it’s not wasted money; g. You’re buying the property over a time that suits for you.
Make your rent work for yourself not your landlord
If you are renting now and can only wish of someday being able to move into your own home, a rent to buy solution may perhaps be perfect for you. Currently, any lease you pay every month is dead money, as you have nothing to show for it. You could potentially be spending rent each month with the option of obtaining the property and your rent could extend towards decreasing the cost you need to pay for the property in the future.
You just have to find a tiny outlay to step on the ladder
To have your home this method there’s an initial small outlay to get started; however, this is nowhere close to the 20% deposit typically inquired when you obtain on a mortgage. With us, frequently it is in the region of 2% of the price of the property. This money is then deducted from the final purchase value of the property when you buy, typically 3 to 5 years down the line.
Your fate is not sealed
Of course, something could take place in three to 5 years and when you decide to enter into a rent to purchase decision, your outcome is not secured. When you have a mortgage, from the moment you put your signature on the dotted line you are in a great debt and monthly mortgage repayments around your neck. If anything untoward were to occur within this period, which meant you wished you never had entered into the contract, then you have to face the results. When you rent to purchase, we understand that you might have second thoughts and so when your rental period is reached if you should decide not to go ahead and purchase, you can simply walk away. There’s no burden on you and you have nothing more to pay us.
My credit ranking is terrible I would not be able to obtain a mortgage
If you have a terrible credit history then this might be holding you back from finding a mortgage. Again, the rent to buy plan we propose may work in your favor. You do not have to put in for a mortgage to buy straight away, you can move into a property and have time, normally between 3 to 5 years, to improve your credit score and get back on your feet. Of course, you are not losing out as you obtain the estate at the approved price and if you develop any equity in it, it is yours if you decide to buy. However, you also have the choice of walking away if things do not work as you had anticipated.
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