Why do families decide to take the rent to own route, instead of the traditional route of walking into a bank and getting a mortgage? What are these families thinking and what are their future goals?
Here are a few reasons. Families who decide to take the rent to own route, are the ones that are perhaps currently renting but want to become homeowners, They may not have the 5% or 10% needed for down payment. They may want to first live in a neighbourhood before deciding if its right for them. Many aspects come into play. Maybe they are new to the country and do not have established credit or perhaps they have bad credit. There are many factors involved and all are great reasons to jump on board. Why rent, when you can own.
It could be as simple as, the family feels more at home knowing they will eventually own the home instead of renting. There are financial reasons, emotional reasons and circumstantial reasons. The decision to rent, rent to own or to get a traditional mortgage all vary from one family to another.
- Poor or limited credit history
- Insufficient length of employment
- Purchase price is a guaranteed at the beginning of the lease term, even if prices go up, you’re still locked in.
- Insufficient down payment
- Benefit today by living in the home of your choice, instead of renting elsewhere.
So, you see, there are many reasons why a family would choose to take the rent to own route, instead of simply paying rent, which does not provide any returns. Renting to own gives them the ability to purchase their dream home sooner, even when times are troubled. It gives them the peace of mind and emotional attachment we all want from a home. A home should feel like it is yours, not rented. You should be able to make it your own, regardless of financial circumstances. A home provides stability to families, they can stay in one location for generations and never move. Families who rent must face the harsh reality of moving and we all know how difficult and challenging moving can be.
Families want to provide each other with peace, stability, freedom and safety. A home is the best way is to provide all that and much more. A home they can call their own, a home they can grow old and make memories in. You can’t put a price on that.