Rent to buy homes in Perth, WA, is relatively a newer concept. So, most people do not how the process works. If you are one of them, then this guide is for you. Here, with the help of Stop Renting Perth, we have tried to answer the questions that people are searching for.
What Is Rent To Own?
This opportunity allows the prospective buyers to rent a property with an option to buy the house later. The contract is finalized with the lease-option contract that gives the buyer the right to buy the same property after the lease expires. However, with this option, you may have to pay for the maintenance and repairs yourself.
Is Rent To Homes Real?
Yes, rent to buy homes for sale are available. It is a great opportunity for people who want to buy a property, but can’t qualify for the mortgage. It provides them time to build good credit, so they can get the loan at the time to buy the dream house.
Do Realtors Helps In Finding Rent To Buy Homes In Perth, WA?
Yes, they can help you escape the rent trap with this option. However, very few of them will be willing to do so. This is because there’s very little commission for them. They usually make commission out of the option fee as the final sale isn’t happening any time soon.
How Does The Process Work?
Firstly, the buyer and the seller will decide the final purchase price of the house. This price can be higher than the house’s current value. It isn’t something to worry about, as the house value increases over time. If the value of the house increases more than the decided purchase price in the future, it will benefit the buyer more, and vice versa.
How Payments Are Made With Rent To Own?
Typically, the buyer will have to pay an upfront cost, mostly 5% of the final purchasing price. This payment is non-refundable; however, considered in the down payment. Also, the monthly rent will be decided in the contract. The price will be higher than the regular rent, as the extra amount is credited towards the purchasing price. It will reduce the price buyer has to pay in the end. Similarly, it would compensate the sellers for not selling the property.
Who Pays For Maintenance?
The buyer looking for rent to own in Perth will be responsible for paying for maintenance and repairs. However, we would recommend you negotiate an exception in your option agreement. Ask the seller to pay for the repairs that are required within the first 30 days of the contract, and for the rest, the renters will be responsible.
Does Rent To Own Works With Bad Credit?
It’s easier to find rent-to-own opportunities with bad credit in compassion to qualify for the mortgage. Some sellers might check the credit; however, they do so just to see if the credit will improve before the lease agreement ends. More so, it offers great benefits for people who can’t qualify for a mortgage. It gives them time to build good credit.
We hope this guide has helped to answer all your questions about rent to buy homes in Perth, WA. If you have any other concerns, consult the experts.