Stop Renting Perth

Stop renting today and buy a house in Perth. But how? Let us introduce you to a very simple concept of rent-to-own homes that will help you rationalize your dream of buying a home in Perth. You agree to rent the property over time, which could be one, two, three, four, five years, or even more before you purchase it. During this period, the seller holds some amount of money from the designated rental payment that is accumulated as equity. Rent-to-own homes are very different from the typical home-buying procedure.

Rent to Own Homes Phenomena

There are five core elements to this whole procedure

Rent Payment

This is the payment of the monthly rent that you pay on the property. You need to be aware that the monthly rents of rent to own properties are higher than the average rental payment of the house. In this case, you are paying extra because of the right to be able to purchase that property. However long it may take the individual, sooner or later, they have the right to be able to purchase that home property. So, it is the rent payment that you need to negotiate. This is only applicable when the buyer and seller sign the contract.

Rent Credit

A portion of your monthly payment goes down towards your down payment when you buy a property. For example, if you pay $1400 each month in rent for the next three years and 25% is credited towards the purchase at the end. So, in total you will earn a total of $12,600 ($1400* 0.25= $350; $350 *36 months=$12,600). The rent is also slightly higher than the total rent being charged in the area to make up for the rent credit that you will be receiving.

Purchase Price

It agrees on when and how the purchase price will be determined. Are you going to give the money upfront for the property? The buyer and seller agree on a price when the contract is signed in many cases. This is a price higher than the market price. Another option is to ponder over it when the lease expires. In this scenario, the property’s then-current scenario is considered. Most buyers prefer to ‘lock in’ a price, especially in areas where the property prices fluctuate.

Option Payment

Option payment can also be considered as the down payment. When you execute your choice to purchase the home, it will add to that total payment. This option payment is negotiable and depends on whom you are working with. Some sellers will ask for a significant amount of money, meaning anywhere between fifteen thousand dollars to fifty thousand dollars. It also depends on the price of the home.

Mostly in the mainstream home, one should expect five thousand to ten thousand dollars. One should always consider both the parties while deciding on the option payment. This should be remembered that option payment is considered your commitment to purchase the property. This allows the buyer to purchase it anytime they want and holds the seller back from selling it. Option payment will not be returned if you back out from purchasing the home. But when you do execute the purchase, it is important that you get the credit for the down payment.

Option Term

It is the period when you, the buyer, are able to execute the options. For example, the property can be on rent for two or three years, and then you buy the property. The term is not fixed. Certain states do not allow rent to own to be structured like this.

If you haven’t started your homeownership journey yet, then look no further and go to Stop Renting Perth. They help the renters achieve their dream of buying a home in Perth. Their experience spans over a decade that helps you stop renting today and buy a house in Perth.

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