Renting to own is a big chance for home buyers who are not ready to buy a house or to start the home buying process for some reasons like not having enough money for a down payment or not being able to secure Tampa FL home loans.
It is good to consider the real cost of renting to own especially if you are thinking of doing this kind of business. Just like most first time home buyers, they might have known about the existence of the rent to own process but are clueless about its real story.
Each state has their own specific and detailed rent to own laws to inform every home buyer how this type of home buying process works. The form of contract for rent to own is unlike that of the other contracts involving homes in Tampa Bay FL. You will also have to pay for a fee, monthly above-the-market rent and other additional premiums with rent to own.On the other, your payment will not be returned to you if you fail to buy the house on the agreed period. You won’t be entitled with certain tax-write offs.
The process of rent to own is not that difficult. The prospective buyer will have to sign an agreement with the owner where the rent is slightly above the market rate. The buyer has the option to to purchase the property at any point of time during the rental period. A portion of the rent will be credited back to the buyer which is often used as a down payment if he agrees with this and complete the sale. But if he doesn’t and decides to continue renting, the buyer has the option although one major drawback is that he or she has already paid an above-the-market rent.
While there are benefits, there are also bad consequences if you fail to adhere to the agreement. Nevertheless, the plus point here is that with the rent-to-own process, you might be able to buy properties that are quite expensive if it’s purchased through the traditional home buying process. And besides you are not going to pull out a significant amount of money for the down payment because you’ll have an option fee as described above. Even if you are responsible for the repairs and maintenance, you’ll have an overall control of the property. Since the property is not yours yet, you won’t be paying for property taxes anymore.
Risks are involved not only in renting to own a property at Tampa Florida Homes For Sale but also in all real estate processes and your defense is by having a full knowledge of renting to own and having an agent to guide you all the way.