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Rising prices of Charlotte
homes have created a favorable atmosphere for the Rent to
own home seller. Rent to own
homes have long been thought of as a workaround for those
with credit issues, low down payment funds, or self employed.
All of these variables make it hard for the rent to own buyer to
acquire conventional funding. This is the basis of the standard
rent to own market, and what has created the industry.
The game in rent to own has changed for some investors, and more
so for homebuyers looking at this option. With a handful of
markets growing in value at extreme rates, rent to own has
changed in complexion, let me show you how.
When you rent to own or lease purchase a home, you enter a 2-5%
down payment with the owner, and you lock in a buying price for
the home. You pay like a tenant for a period of 1 or 2 years,
and the rent has a percentage levied against the balance. This
retained money will only go toward a purchase if you complete
the deal at the end of the term.
In this way many homebuyers enter like speculators, and this
becomes profitable in neighborhoods where you can lock in a
price better than the future price at the time of close.
In Charlotte, like most of Florida, California, Arizona, and
Oregon the prices are fast rising. A buyer than can enter an
option deal on a home at a fair market value can stand to get a
pretty good deal once the price rises.
If I lock in a 2 year term on a home for $150,000 and the value
of the home is in the range of 130-150,000, then as 2 years
passes in these growth markets, I likely stand to get a very
good deal in the future home market.
Charlotte is in a phase of particular growth, and this new
advantage has spawned a lot of opportunity for rent to own
buyers. If you are able to find an honest good deal, then you
will likely have a great deal on your hands once two years
passes.
The advice we give to make sure this advantage leans in your
favor is to research the area and know its future development.
The addition of nearby malls, theaters, parks, or quality
housing can be the key to a nice price when it comes time to buy.
Charlotte is just one place that rent to own works for buyers,
look into it in your city if the market is strong, and use it to
lock in a price now and build equity today.
About the author:
M. Katz is a webmaster and agent associate in Charlotte North
Carolina.
Real estate lead generation and relocation help services. Charlotte Rental Homes Charlotte Chat Rooms
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