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You can get all the information about renting a house on internet.There are so many websites thatwill give you all the information on renting a house....
My sis has done the rent-to-own for years. She added it up one day and figured, she paid twice what the item was worth. Thank goodness, she woke up and quit the cycle. Even used is better than paying double!
Tips and ideas will do well.I can think over them then I can choose.
Rent to own....generally for banks to consider, I think it must be a written agreement; the amount going towards the down payment must be over and above what you would typically pay in rent (eg, if the house would normally rent for $1000, and you are paying $1200 per month - only $200 can go towards the down payment amount); the amount paid towards the down payment must be refundable if you decide to not purchase the property.
I don't think it is that common. Another pitfall is that if you sign the contract to sell the property at today's price, but you sell it 2 years from now, you better hope values don't go significantly up - or else you are stuck selling a house for a lower value than it is worth.
Also, you have to hope that the borrowers qualify at the banks at the time the purchase is supposed to go through.
Hope this helps.
The benefit is that it gives the "buyer" the opportunity to see if they like living in the neighbourhood in that particular house without having to pay out real estate comissions and loosing money if they really don't like it there. Another benefit is that for someone with no or little downpayment they can get going on home ownership although I think the CMHC has something in place for that now, maybe that is why rent to own isn't such a common occurrence these days.
Thanks Pearl for the link. It was a very interesting read and I am not sure why someone would want to enter this type of agreement.
I should have mentioned that someone has asked us whether we would consider rent - to - own our house to them. So we would be the sellers.
From what I have found on the internet (sourcing can be questionable), it really does not seem to be ideal for the "buyer". The pro's/con's seem to lean toward the "sellerr". For example, the "buyer" is responsible for all repairs and maintenance of the home, unlike a true renter. So if the furnance, stove, fridge, etc quits it is the responsible of the person renting to own.
There are definitely negatives from the "sellers" perspective but not as impacting or so it would seem. Hence the question to the knowledge of the people here on the forum!