With rent-to-own, part of your rent goes toward a down payment on the property. But be sure you fully understand the contract and can fulfill.
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Dear Monty: To own your home, or not – We have also read that many younger people prefer to rent. We are also worried that we may be on the top of a housing bubble. Do you think owning a home is a good idea? Monty’s Answer: The basic.
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Rent to own basics. Rent to own is a way to buy a house by renting it first for a few years. Some of your monthly rent gets applied to the final purchase price. In effect, you’re making part of.
Rent-to-own is when a tenant signs a rental agreement or lease that has an option to buy the house or condo later – usually within three years. The renter’s monthly payments will include rent payments and additional payments that will go towards a down payment for purchasing the home.
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Using the Lease-To-Own Approach for Rental Property – So you enter into a lease-to-own contract with one of them so you can buy a property through a lease-purchase option with the owner. You pay a non-refundable lease-option fee up front and sign a three-year lease with the option to buy the property at or before the end of the lease at a pre-negotiated price.
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Lease options and lease purchase sales are similar but different, and they can be risky for homebuyers.. If the buyer defaults, the seller does not refund any portion of the lease payments or the option money and he can retain the right to sue for specific performance.
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