newsabouthomes's Journal: Advantages of Rent to Own Homes

Rent to own homes provide many advantages to renters who want to own their home and are not getting traditional mortgage approval. This arrangement is also financially beneficial to people who want to purchase real estate and then make a sale to the tenants. Here we will discuss briefly the disadvantages and advantages in renting vs owning a home. We will also see how the process of rent to own homes works.

Renting homes involves making to the owner a monthly payment, which in turn provides accommodation. But when you are the real estate owner, the same payment monthly, can provide much more than just accommodation, as each of your payment becomes an investment. For example when you have taken a mortgage for thirty years, you will become the owner of the property after the mortgage period, and no more payments will then be required. Compared to this when you rent, you need to keep making payments every month irrespective of any period, and you will never own your place. The only advantage in renting vs owning a home is that repairs cost is not your responsibility, whereas if you are an owner you have to pay these costs.

But repairs cost is a very small issue when you consider the various advantages of owning your own place. Many renters are now becoming aware of this fact, but they are not able to pursue the goal of owning real estate due to poor credit. For such people who cannot get a mortgage, rent to own homes is a great alternative.

People need not have good credit for qualifying for rent to own homes. Only a little down payment has to be made and then payments have to be made every month to the real estate owner. These payments are for a set period and then they become the owner of the house. This is a great way to start an ownership process for a home and in many cases after some years; you can also convert the agreement to the usual mortgage.

Homeowners also have a few advantages if they opt to make a sale in this manner. One advantage is tax benefits which homeowners get, and the other benefit is getting a monthly income which is most probably more than the amount they will be paying each month for the property. As the agreement is "rent to own", cost of maintenance can also be avoided as that will be paid by the tenant.

A renter receives quite little benefit when renting a home. But renters can become owners of the property even when their credit is not good if they opt for rent to own homes. The best part is that it is beneficial to all those who are involved, and people can own their homes, which was not an easy task before.