Is It A Good Idea To Rent To Own A Home?

It is an interesting question that I want to address this week.Is it a good idea to Rent to Own a home?

The short answer is “it depends”. It depends on your unique situation and your life goals. If you are planning to enter into a Rent to Own a home program, there are plenty of questions to ask a Rent to Own company (see my previous market insights on Questions to ask a Rent to Own company).

For the purposes of this week’s market insight, let’s start with where you want to live.

If you plan to live in the same city/town for at least the next five years, then I would say YES it is a good idea to Rent to Own your home. If you are unsure about this, then a rent to own program becomes a bit riskier. Typically, Rent to Own programs are 2-5 years in length. This is a longer term commitment than a straight rental. Straight rental leases are typically one year in length, and can often be broken with 60 days notice. Rent to Own leases span the duration of the program. There is often a non-refundable fee associated with Rent to Own programs. This fee is typically applied to your future purchase price should you choose to buy the home at the end of the term. However, if you are unsure, then my short answer is NO – it is not a good idea to Rent to Own a home until you are in a different position in your life.

When is it a good idea to Rent to Own a home?

If you are struggling to save all the required money for a down payment, then Rent to Own might be the perfect solution for you. NOTE-every Rent to Own program operates differently-make sure you understand whether you are required to save on your own, or if you are in a forced savings plan like Sprout Properties sets up). You must also be coachable. There are likely some habits that you will need to change in order to help you achieve your goals. Rent to Own your home is a great idea if you are eager to become a homeowner, and you are coachable.

When else is it a good idea to Rent to Own a home?

If you made a mistake with your credit in the past, and are ready to make changes. If you have a blemish on your credit that is preventing you from becoming a home owner now, but overall you are good with credit. If you are seriously ready to make the necessary changes to improve your credit score, then Rent to Own may be the program for you to become a homeowner!

In conclusion, Rent to Own with Sprout Properties is a program set out to help guide you from renting to home ownership, but you have to be in the right position, and willing to do so. We are ready to help you IF you are ready to do what it takes to achieve your goals.

Set up a phone consultation with someone on our team today to find out more!