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Is Renting to Own Right for You?

by Redeeming Riches on March 10, 2012

Investing in real estate can be a gamble. That is unless one plans to stay in the home or nearby area for long term. If this is the case, renting to own real estate is a great way for first time buyers to dip their feet into the pool of the American dream.

Renting to own is a concept that became popular several decades ago. Basically, it means that a tenant is renting a house or condo with the intention of purchasing the house or condo in the future. This means that a portion of the tenant’s down payment and monthly payments will go to the down payment placed on the house/condo.

renting to own

Renting to own has a few traps that need to be steered around. For one thing, the renter must remember that (s)he is technically still a renter. Owning renter’s insurance is mandatory to protect themselves from any damages that may take place in the unit before (s)he is the actual owner. The best place to find affordable and reliable insurance is through RentersInsurance.com.

In addition, once a rent to own contract has been signed and set in motion, it is hard to get out of. The reason for this is that land owner or management company has, in most cases, already set the portion of the deposit and/or partial payments into an account that is set up to be ultimately used as an escrow account. If the renter has changed his/her mind about owning the property someday, it can be quite costly and challenging to get this money back. In most cases, a landlord/seller will write in fine print that this money non refundable. As with every contract, have an attorney or specialist review it before signing.

Getting into a rent to own property contract is a very intelligent way of making home ownership a reality. It is a way of putting a particular property on hold until one can get enough money to purchase it. At the same time, that person gets to enjoy living in the house/condo right away.

Renting is ideal for some people. Buying property outright is great for others. If a person falls somewhere in between, renting to own is the way to go. Simply read the small print, head to RentersInsurance.com for reliable coverage, and be sure to pick out a home or condo that will be worth coming home to for years to come.

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