The Costs of Rent to Own Housing – For the Long Island Area

FB image for HSPH4Home ownership is a major part of the American dream. Millions of families want a nice home, a white picket fence, and a place to rest after a hard day of work. However, many people want to know the costs of rent to own housing – for the Long Island Area.

Unfortunately, the number of Americans with credit problems, and the growing number of banks who are rejecting loan applications are growing at a record pace. The economy simply isn’t what it used to be. Many buyers and sellers are finding creative options for selling or purchasing a home, including purchase options, otherwise known as rent to own.

In a rent to own agreement, a buyer would move into a home, paying rent, and build credit towards a down payment to ultimately purchase the home. This is a valuable option for families who may not have the necessary credit score to get a traditional mortgage. Renting to own has a wide range of issues to consider before entering an agreement.

When you’re considering moving into a rent to own property, you’re likely to be charged more than you would if you were renting from a traditional landlord. This is because the lease option, the clause that allows you to buy the house at the end of the rental term, is built into the cost of rent. A portion of your monthly rent will be applied to a down payment on the home.

While you may pay slightly more to rent to own a home each month, the savings in the long term could be significant. This is because many sellers will set a predetermined price on the house, locking in protection against housing market fluctuations.

Example: You’ve agreed to rent-to-own a home for three years, before exercising your option to purchase. You come to an agreement with the seller on a price at the end of that term of $200,000. Let’s say that at the end of your rental term, the housing market becomes extremely competitive and surrounding homes are selling for $300,000. As a buyer, you’ll be saving $100,000 on the cost of your new home simply by renting to own and locking in the price.

Rent-to-own housing is a great tool for real estate speculation or families who are simply in a bind, and looking to realize the dream of home ownership, without dealing with sometimes unrealistic expectations from large banks and mortgage firms. Combine that with the mistrust that the mortgage industry has earned over the last two decades, and renting to own, directly from the seller could be a great option!

Ieishah Edwards

About Ieishah Edwards

In a society that has traditionally valued job security, Ieishah has demonstrated the ingenuity and perseverance it takes in creating and sustaining a successful growing business. She has displayed incredible drive, acumen and creativity which have positively impacted her business and the community she serves. Her goal, however, is to become a real estate investor who buys properties and/or sells them to end-users. The knowledge and experience of investing in real estate has grown tremendously due in part to her previous partnership with Anglestone Realty Acquisitions and OneSource Mortgage Company. This union has complimented this endeavor and has enabled her to develop a good business foundation in real estate investing. Ieishah decided to launch her own real estate investing business, HomeSites Property Holdings LLC. Within months after launching her own real estate investing company, Ieishah landed her first real estate deal. Now, as a full time real estate investor, Ieishah continues to invest in real estate and has never looked back. With the right drive, positive attitude, focus and idea, anyone can accomplish whatever is their passion in life. Focus on what you are passionate about, put together a marketing plan and take ACTION for results. Are you ready for the challenge?
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