If someone assert to you that you could progress onto the property ladder and never have to go exploring for a mortgage or pay a large deposit, would you trust them? In fact, it’s possible to buy property this mode whenever you opt to rent to buy.
The benefits of renting to buy
Listed below are some of the many benefits of renting to buy
a. There is no mortgage to take out initially; b. From moving into the home you have ownership; c. Very low start-up costs, normally around 2% of the property price; d. We don’t have a segment in the property, you have 100%; e. If you develop equity in it and you conclude to purchase, this equity is yours; f. Your lease is deducted from the cost you pay; it’s not wasted money; g. You’re acquiring the assets over a time that works for you.
Make your rent work for you not your landlord
In case you are renting now and can only dream of someday being able to move into your own home, a rent to purchase solution might be ideal for you. Currently, any rent you pay every month is dead money, as you have nothing to show for it. You could potentially be spending rent each month with the choice of buying the property and your rent could spread towards decreasing the price you have to pay for the home in the future.
You just have to find a tiny outlay to progress on the ladder
To have your home this manner there is a preliminary small outlay to get started; however, this is nowhere near the 20% deposit generally inquired when you get on a mortgage. With us, typically it is in the region of 2% of the price of the property. This fund is then deducted from the final purchase fee of the property when you buy, typically 3 to 5 years down the line.
Your destiny is not sealed
Of course, something could take place in three to five years and when you decide to go into a rent to buy option, your fate is not sealed. When you get a mortgage, from the minute you put your signature on the dotted line you are in a huge debt and monthly mortgage repayments around your neck. If anything awkward were to take place during this time, which meant you wished you had never entered into the contract, then you have to handle the effects. When you rent to purchase, we know that you could have second thoughts and so when your rental period is achieved if you should make a decision not to go ahead and purchase, you can simply walk away. There is no burden on you and you have nothing more to pay us.
My credit ranking is bad I can’t obtain a mortgage
If you have a terrible credit history then this might be holding you back from finding a mortgage. Again, the rent to buy plan we propose may work in your favor. You do not have to put in for a mortgage to buy straight away, you can move into a property and have time, normally between 3 to 5 years, to improve your credit score and get back on your feet. Of course, you are not losing out as you obtain the estate at the approved price and if you develop any equity in it, it is yours if you decide to buy. However, you also have the choice of walking away if things do not work as you had anticipated.
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