Don’t Get Caught With a Property You Can’t Sell – Offer Rent To Own Terms

You’ve just purchased the home of your dreams, signed the contract and packed the moving van and you’re all set, right? Not if you haven’t sold your current dwelling first. So you put it on the market and you wait. And wait. And wait. Purchasers come along, but they don’t have sufficient money saved up for a down payment, or their credit isn’t good enough. How will you ever sell this property?

For some, the rent-to-own property may be the best choice. Likewise called a lease-to-own property, the method functions similar to a automobile lease: Renters pay a certain amount each month to live in the house, and at the end of a set point generally inside five years they have the option to buy the house. Every month of rent they pay is income for the vendor, while a percentage of it goes toward a down payment on eventually buying the home.

­­Both tenants and sellers want to be really clear about the contract they write up before they agree to this arrangement. Renting to own has advantages and disadvantages for both parties. Sellers who have already bought a new home will have relief from paying two mortgage payments at once, and in a slow housing market with many properties for sale, this may be their greatest alternative. Buyers who can’t yet afford a house may be able to buy one more quickly.

Visit www.DIYRentToBuyHouses.com.au to read how Dallas & Kerrie Kelso can show anyone how to setup their own Rent To Buy deal without involving the costly Rent To Own Investor middleman.