The Disadvantages Of Lease-to-Own
Jan 3rd 2012MiamiBuying & Homes & Renting
Rent-to-own agreements if properly crafted are very effective in enabling people to buy a home without any problem of financing or paying for down payments. If you are considering rent-to-own and heard only the good side of the story then carefully evaluate the cons of the process before you make any decision. You can’t just leap to the cliff without looking down. Never compromise your ‘yes’ especially if there are some terms and conditions that you don’t understand or agree with. To strengthen your decision whether to buy or not to buy, here are the disadvantages of RTO:
Price – A rent to own property will always have a higher price after a certain year of agreement compared to a purchased property in cash or through mortgage.
Higher Payments – The monthly rent you pay under a rent-to-own agreement is higher than the rent you pay under a normal rent agreement. This is true because you are not only paying for the space but you are paying for the ‘option to buy’ the property at the end of the set lease period.
Possible Eviction – A seller can evict the renter even when a single payment is missed. In short, the seller will forfeit the money intended for down payment because of a single missed payment.
Cancellation of the Contract – Most rent-to-own agreements don’t have a term for a third party transfer in case something happens to the original owner. The insurance may cover any losses in these situations but the seller might be justified in terminating the RTO agreement without having to refund the renter’s money.
Rent-to-own is a good choice but it’s also risky. If you think you are not yet ready, think carefully if you can adhere to the terms. Almost each and everyone of us is dreaming of having their own Mesa AZ Real Estate property, but is not ready yet to give up renting. Good news! Rent to own with its lease-option-contract can make your dream of buying a home possible. Simply visit Real Estate Potomac Maryland for buying advantages.
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