Rent to Own
Buyers Properties FAQ
I am renting now, how is this different?
This is a way to help you get started toward BUYING your own home.
Part of your rent payment is credited towards your purchase. Instead
of throwing your money away each month on rent and having nothing to
show for it at the end of the rental period, with Perth Real Estate
Finder, each month a portion of your monthly payment is credited
toward the purchase of the home.
For example, if you were paying $2,000 a month in rent you
would have up to $500 a month going toward helping you purchase the
home. That's $6,000 after 12 months!
Do I have to 'qualify' for this program?
Not in the usual sense of having to meet certain income and debt
ratios, or achieving a certain credit score as would be necessary
for most mortgage companies. Your credit and finances are not the
restriction they would be with a conventional mortgage company.
Although it actually makes sense to buy a home this way even if you
could get conventional financing today, many of our buyers do have
some issues that need some time to be resolved.
Is the price of the home established in
advance?
YES. The price of the home is decided at the time you sign the Lease
Agreement and is not affected by the local market conditions.
Remember, your 'rent credit' may be used toward the purchase of any
home we have available for sale. We may even be able to build you a
home if you prefer not to buy your current residence.
How long is the Rent To Own period for?
Typically we can give you twelve months and quite often up to
twenty-four months before you would need to complete the purchase.
Each property is treated individually and we try to accommodate your
own situation.
HOWEVER, you may buy at any time within the length of the agreement.
You do not have to wait till the end of the agreement.
What do I need to get into my own Rent To
Own home?
Only a small down payment, and the first and last months rent. We
can even spread some of this out over a period of time.
Who pays the property taxes and insurance
during the Rent To Own?
The property owner. You pay the monthly 'rent' and utilities etc.
until you actually complete the purchase.
How do I actually find a Rent To Own home?
We will advise you after you confirm you intentions of getting into
a rent to buy home. Homes on this program sell very
fast, often in hours rather than weeks and months. For this reason
you need to be ready to make a decision when you start looking for a
home. We try to accommodate your moving dates and if, for example,
you need to give 30 days notice to your Landlord you can probably
secure your rent2own home and move in 30 days or so. We maintain a
short list of buyers ready and able to move when a home they like
becomes available. Some homes therefore are never even advertised.
If you are serious about getting into your own home please give the
closest office a call and ask to be put on their list.
When I take on the
mortgage at the end of the program, will the monthly cost increase?
While this is extremely difficult to
predict due to many variables including the interest rate
environment at the end of the “rental” period, your monthly housing
cost (mortgage payment, taxes, insurance) is expected to approximate
the monthly rent payment during your participation in the program.
What happens if our
family wants to leave the program early?
There are several things you should
take into account when considering leaving the program:
-
During your rental period, you sign
one-year leases, which obligate you in exactly the same way that
you would be obligated to a regular landlord.
-
Unless you complete the entire
rental period (up to 15 years), you receive none of the benefits
of homeownership including equity build up and appreciation.
-
You will
forfeit any credits accumulated towards the purchase price of
the home.
|
