Getting Out Of Renting

Renting does have some advantages. If it didn't, no one would do it. The disadvantages of renting, however, are many and significant. The first, and most obvious, is that the money you spend on rent is essentially thrown away. The money is not tax-deductable, in most cases, and gains you no equity in the property in which you live. Another disadvantage is that renting offers little say over how you arrange, decorate and modify your home. Your home or apartment, of course, belongs to the landlord and they, ultimately, get the last word on any changes.

For most individuals, the obvious alternative to renting is buying a home. The intimidating amount of money, process of getting financing and other hassles of purchasing a home keep many individuals from even bothering to try. There is something in between, however, that allows you an opportunity to establish yourself in a house without taking on all of the financial responsibilities. These lease to own options, as they're often called, offer you an opportunity to get out of renting without the difficulties usually associated with getting a mortgage.

Lease to own arrangements are often offered by real estate investors who want a better quality tenant who will ultimately buy the home. These individuals allow clients who may not qualify for a mortgage to get into a home. The way the arrangement works is that you pay a down payment on the home and then sign onto a lease. The lease contains the option for you to purchase the home, at a price that is locked in from the beginning. This means that, if you live in the home for two years and the market improves significantly, you may purchase the home at the price that is much lower than market value. In markets such as Port Orchard and Bremerton, this can mean significant profits.

A great deal of the expense associated with home ownership is eliminated under these arrangements. Instead of paying a large mortgage payment every month, plus taxes and plus insurance, you merely pay your lease payment, and a portion of the payment will apply towards the purchase. You are not liable for the taxes on the property until you actually purchase the home. Some of the individuals who offer these arrangements will also allow their clients to pay off their down payments in several installments, reducing the financial burden of coming up with that amount of money all at once.

By: Mike Sumsky

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Washington Home Solutions is located in Port Orchard and offers lease opportunities to people who would like to own a home, but need time to get financing together and would like to explore lease to own opportunities. You can learn more at WAHomeSolutions.com.