Rent To Own - Is It For You?

One Minute With The One Group

As sale prices rise and mortgage rules tighten, it is becoming more challenging for first time buyers to get into the Real Estate market. And for some, a Rent To Own program might seem like a path to ownership. But what does it entail? Basically, a homeowner rents to a tenant with a portion of the rent counting toward a deposit, with the tenant having the option to buy the home for a predetermined price at the end of the lease. But there are potential pitfalls. For the investor, the downside is that if a tenant decides to break the rent-to-own agreement, or decides the home is not suitable, you risk losing money on re-sale while being left with a vacant property. For the tenants, if the deal doesn’t come together they may lose their deposit, and depending on how the contract is written, may lose all the money that was put aside for the down payment. The bottom line is that while Rent-to-own home ownership isn’t a bad option, it can be risky for those who don’t understand exactly what they are signing up for. Do your research. If you have a question about Barrie Real Estate, we have answers! Reach out anytime to [e-mail]