Rent to own schemes may appear to be the solution to a daunting problem, however, is it really? Owning your own home or property is an aspiration that all work towards, however, in an economic climate that is fast dwindling, finance is hard to come by. Prospective homeowners are seeking Senior Living Placement Agency Georgia to achieve their dreams, but, is it the right choice?
Owning your own home, especially one that you have dreamed about, is an aspiration of all. The economy is, however, such that banks are becoming stricter about offering mortgage loans as freely as they once did. Money is scarce, and banks and other financial institutions are going to great lengths to ensure that they will always get their money.
The scheme is in effect a lease agreement. The seller of the house allows the purchaser to rent the premises for an extended duration of time plus the inclusion of additional payments, at a designated time in that period, the person leasing the property has an opportunity to purchase.
When it comes to schemes like this, the prospective purchaser needs to understand the financial implications, and risks involved. Besides the normal monthly rental, the prospective buyer, who is leasing at present, is responsible for paying all the additional fees relating to the home, including rates and taxed for the property.
Having one of these agreements in place ensures the potential purchaser that should they decide to at a later stage, they can at an already predetermined price.
On the other hand, your fate may not even lie within your hands. If the person who is renting the property with the promise to purchase, to you, and they still have a liability with the bank, they need to keep their repayments up to date. Should they falter, the financial institution has the right to repossess the property, and in effect put you out on the street. You have no claim whatsoever to the said property. This is a major risk, considering the volatility of the economy at the present time.
While this is a leasing agreement of sorts, it differs somewhat to a normal lease arrangement. When you undertake a rent to own scheme, you undertake to pay all the fees and costs that relate to that property. That may include maintenance, repairs, and even the rates and taxes, to name a few. The cost implications are more than just the monthly rental fee and need to be considered carefully.
While it may not be the ideal situation, it is sometimes best to undertake your first real estate investment as one in which you will not live. Many can afford to buy a property, and rent it out as a secondary income, however, are unable to live there themselves. There will always be an opportunity at a later stage to take your earnings and reinvest it into a property for yourself.
Owning your own home, especially one that you have dreamed about, is an aspiration of all. The economy is, however, such that banks are becoming stricter about offering mortgage loans as freely as they once did. Money is scarce, and banks and other financial institutions are going to great lengths to ensure that they will always get their money.
The scheme is in effect a lease agreement. The seller of the house allows the purchaser to rent the premises for an extended duration of time plus the inclusion of additional payments, at a designated time in that period, the person leasing the property has an opportunity to purchase.
When it comes to schemes like this, the prospective purchaser needs to understand the financial implications, and risks involved. Besides the normal monthly rental, the prospective buyer, who is leasing at present, is responsible for paying all the additional fees relating to the home, including rates and taxed for the property.
Having one of these agreements in place ensures the potential purchaser that should they decide to at a later stage, they can at an already predetermined price.
On the other hand, your fate may not even lie within your hands. If the person who is renting the property with the promise to purchase, to you, and they still have a liability with the bank, they need to keep their repayments up to date. Should they falter, the financial institution has the right to repossess the property, and in effect put you out on the street. You have no claim whatsoever to the said property. This is a major risk, considering the volatility of the economy at the present time.
While this is a leasing agreement of sorts, it differs somewhat to a normal lease arrangement. When you undertake a rent to own scheme, you undertake to pay all the fees and costs that relate to that property. That may include maintenance, repairs, and even the rates and taxes, to name a few. The cost implications are more than just the monthly rental fee and need to be considered carefully.
While it may not be the ideal situation, it is sometimes best to undertake your first real estate investment as one in which you will not live. Many can afford to buy a property, and rent it out as a secondary income, however, are unable to live there themselves. There will always be an opportunity at a later stage to take your earnings and reinvest it into a property for yourself.
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