We love putting things on credit. Credit cards, hire purchase, and loans - we don't seem to be able to get enough. Avoiding credit and hire purchase options is always a good idea, but what about property? You have probably heard about rent-to-buy housing options, but if you know anything about hire purchasing then you are probably a little bit dubious!
How do rent-to-buy options work?
These housing options are a little different than a standard hire purchase agreement in a store. Obviously paying off the entire cost of a house isn't viable through a monthly payment on top of rent; what a rent-to-buy option allows you is to save the money for a down payment on a mortgage.
What are the pros?
It forces you to save the money that you will need for your deposit and, as it is a gradual agreement that usually takes one or more years, it means less of a hit to your monthly income. If you're living in one of the country's main centres where prices are high then it's definitely something you should consider if you are struggling to get together the cash for a deposit.
What about the cons?
As rent-to-buy houses are less commonly available, property owners usually have the ability to charge more. You will end up paying a bit extra than you would for similar accommodation elsewhere, but you do have the benefit of one day owning the house that you live in.
Who is rent-to-buy housing suited to?
If you are making enough money to pay off a mortgage but the bank won't give you the time of day because you don't have a down payment on a home then this option can put the regimented savings plan in place to secure a deposit quickly.
It's also an option if you have been leasing a property for a while, you love the house you are in and you want to purchase it off your landlord but just don't have the means to come in with a serious offer yet. Rent-to-buy guarantees you the option to purchase the home when the lease has finished and lets you build equity while you're still a tenant. ฝากขายบ้าน
It isn't for everyone and it does have its pitfalls, but if you're seriously looking at purchasing a property and you need some way to make it work for you, rent-to-buy can be a great option. Don't count it out when you're considering the right path for you in terms of property ownership.
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