Rent to own schemes may appear to be the solution to a daunting problem, however, is it really? Owning your own home or property is an aspiration that all work towards, however, in an economic climate that is fast dwindling, finance is hard to come by. Prospective homeowners are seeking Senior Living Placement Agency Georgia to achieve their dreams, but, is it the right choice?
Owning your own home, especially one that you have dreamed about, is an aspiration of all. The economy is, however, such that banks are becoming stricter about offering mortgage loans as freely as they once did. Money is scarce, and banks and other financial institutions are going to great lengths to ensure that they will always get their money.
The scheme is in effect a lease agreement. The seller of the house allows the purchaser to rent the premises for an extended duration of time plus the inclusion of additional payments, at a designated time in that period, the person leasing the property has an opportunity to purchase.
That seems like a dream opportunity, or does it? If all goes according to plan, the opportunity is one that shouldn t be missed, however, there are risks involved that need to be acknowledged because if things go pear-shaped, you stand the risk of losing it all.
Having one of these agreements in place ensures the potential purchaser that should they decide to at a later stage, they can at an already predetermined price.
A further risk is encountered once the time comes to make the official purchase. You are never guaranteed that you will be awarded a mortgage loan from a financial institution, regardless of whether or not the price is now at a minimum. Should you fail to secure the loan, your money spent in pursuit of owning your own property is lost.
Further risks are run on the part of the person leasing the home to you. Should they fail to meet their commitments to their own financial institution, the property may be repossessed, and you are still on the losing end. You have no claim to the property, and will lose all you have paid as well as the home.
Investing in property is always a good move, however, you may find that it is best to invest in a property for a rental first. In this way, you do own a property that is working for you. Once the funds start to accumulate, you can later purchase the home of your dreams without the worry that it will be taken from you.
Owning your own home, especially one that you have dreamed about, is an aspiration of all. The economy is, however, such that banks are becoming stricter about offering mortgage loans as freely as they once did. Money is scarce, and banks and other financial institutions are going to great lengths to ensure that they will always get their money.
The scheme is in effect a lease agreement. The seller of the house allows the purchaser to rent the premises for an extended duration of time plus the inclusion of additional payments, at a designated time in that period, the person leasing the property has an opportunity to purchase.
That seems like a dream opportunity, or does it? If all goes according to plan, the opportunity is one that shouldn t be missed, however, there are risks involved that need to be acknowledged because if things go pear-shaped, you stand the risk of losing it all.
Having one of these agreements in place ensures the potential purchaser that should they decide to at a later stage, they can at an already predetermined price.
A further risk is encountered once the time comes to make the official purchase. You are never guaranteed that you will be awarded a mortgage loan from a financial institution, regardless of whether or not the price is now at a minimum. Should you fail to secure the loan, your money spent in pursuit of owning your own property is lost.
Further risks are run on the part of the person leasing the home to you. Should they fail to meet their commitments to their own financial institution, the property may be repossessed, and you are still on the losing end. You have no claim to the property, and will lose all you have paid as well as the home.
Investing in property is always a good move, however, you may find that it is best to invest in a property for a rental first. In this way, you do own a property that is working for you. Once the funds start to accumulate, you can later purchase the home of your dreams without the worry that it will be taken from you.
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