Rent to Own Storage Sheds - Why You Should Think Twice
Most of the time they are putting what they want ahead of what they really need. Much like "You Tote The Note" car lots and "Cash Advance" businesses the "Rent To Own" shed business preys on people who have made poor choices, don't know better or unfortunate circumstance have put them in bad financial situations. In any case I think making money off people that can least afford to be paying absorbent interest rates. If they can't obtain reasonable financing or save and pay for out right, then they probably don't really need it.
As an alternative source of financing for your own home (when the bank say "not right now"), you should know what some of the pro's and con's are. Rent to own truly works best for those that understand how it will work for them (what is your "WHY?") and are committed to making it work for them.Pro's of Rent to Own1. You get to move into the home you want (you select the house) today instead of waiting until you can qualify for your own mortgage2. You get the time to rebuild, repair or establish your credit3. You have the necessary time to accumulate a bigger downpayment. Depending on the program is set up, you should be contributing to your downpayment each month, taking the burden off of you to save that money yourself. A portion of each months payment will be credited to your downpayment. For example, if your monthly payment is $2000 a month, rent could be $1500 (to cover the carrying costs on the property) while the other $500 would be credited to your downpayment
4. You get an instant equity stake in the house with your initial downpayment5. You are considered the owner of the house; you maintain and repair the property AND have the ability to upgrade or improve the property which could result in an increased value for the house = more equity for you6. All numbers, including what price you will pay for the house at the end of the program are agreed upon up front. No surprises for you after you have worked hard to qualify.7. Your monthly payment is fixed, meaning it will not increase during the time you are in the program8. You can receive incentives based on meeting outlined credit goals (you get paid to repair your credit)9. You are protected by two agreements, one that protects you as a renter, one that protects you as the option holder to purchase the house at the end of the program10. No fees (in the RIGHT rent to own arrangement)Con's of Rent to OwnGreat, so there are plenty of pros. Are there cons? Sure there are but they aren't all that different from having your own mortgage. These con's have less power if you are committed to the process of improving your situation.1. Biggest con of rent to own is to do a "no-money" down rent to own but I won't dive into this as I have touched on this topic beforeMore Information on Rent to OwnHopefully this will help you determine the alignment between rent to own and your own "why" to renting to own. rent ferrari, range rover hire, rent lamborghini