During rent to own in Perth, you agree to let a property for a certain amount of time, and after that, you have to purchase it. So, there is a chance that both the seller and buyer will benefit from the agreement. In this article, we have listed down all the instances where either buyer or seller will benefit from this deal.
Favourable Instances for Buyers While Rent to Own in Perth
If everything goes well and the buyer is willing to buy the house, it will significantly work out for them. Ultimately, this scenario also benefits the seller because the house won’t sit vacant as in traditional cases. Moving on, the following are the pros of renting to buy for the purchasers:
Flexibility
The buying option agreement is more flexible in comparison to the traditional mortgage purchase. If there is a better job opportunity for the buyer or some other significant changes in their life, they will not have to worry about rushing to sell a house or pay the mortgage at the same time.
Benefit from the rent payments
While rent to buy homes in Perth, WA, the payment isn’t a waste. In traditional letting, the amount paid as rent disappears and is of no use for them. Whereas, for RTO buyers, the portion of the rent instalments is directed towards buying the house.
Collect the down payment
The RTO agreement gives enough time to the buyers to collect the substantial down payment amount. It increases their chance of securing a better mortgage rate.
Improve credit
The buyers will have enough time to improve their credit score and help them get out of the debt.
Property Appreciation
If the property price increases in the future, it will be an excellent benefit for the buyer. As the purchase price is set at the time contract between the buyer and seller.
Seller’s Benefits from Rent to Buy Homes
If the buyer decides to back off from the deal, only the seller will benefit from it.
Steady revenue
As long as the tenant is living there, the house owner will be collecting money in the form of rent, as opposed to a situation where the house is vacant, and they get nothing.
Long-term stability
As the buyer keeps paying the rent, they have more incentive to keep doing so to get value out of the equity they build and ultimately benefiting the sellers.
Fixed purchase price
If the property’s price depreciates during the rent to own in WA, the table with turn in favour of the seller, as they will be getting the same amount decided before.
Bonus income stream
Even if the buyer defaults, the seller gets to keep the option fee submitted at the start of the agreement.
Scheme of rent to own in Perth can therefore be declared a success; for both the buyers and sellers. However, both parties should include experts like Stop Renting Perth, so the process is safe and smooth for them.
