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

You’ve just bought the place 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 place first. So you put it on the market and you wait. And wait. And wait. Purchasers come along, but they don’t have adequate money saved up for a deposit, or their credit rating 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 house, the method works similar to a auto lease: Tenants pay a certain amount every month to live in the house, and at the end of a set period generally inside 3 years they receive the option to buy the house. Each month of rent they pay is income for the vendor, while a portion of it goes toward a down payment on eventually purchasing the home.

­­Both tenants and vendors need to be really clear about the contract they draw up before they agree to this arrangement. Renting to own has advantages and disadvantages for both parties. Sellers who have already bought a new house will have relief from paying two mortgage payments at once, and in a slow housing market with many homes for sale, this may be their greatest option. Buyers who can’t yet afford a home 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 overpriced Rent To Own Investor middleman.