Should You Rent To Own Your Las Vegas Home?
Posted on January 12, 2008
Filed Under Las Vegas Home Loans | Comments Off
Should You Rent To Own Your Las Vegas Home?
Many of us have heard the term “rent to own” or "Owner Financing". Businesses like Prime Time and Rent A Center have built massive empires with rent to own merchandise. While this may be good for peoople with bad credit, most of us prefer to avoid going this route. Las Vegas homes are no exception to the rule, especially if you are buying a Las Vegas home on a rent to own basis.
Why Is Rent To Own A Bad Idea?
Renting to own may look lucrative in the short term, however it proves to be an expensive way for Las Vegas home owners to buy something they intend to keep. A good example is rent to own merchandise, it may sound good to your ears at a few dollars a week. The agreement is normally for around 15 - 20 months, which is where the company makes their money. You're only paying a couple dollars per week but the total amount paid for this merchandise quickly adds up to nearly twice the cost of the item.
Like merchandise, rent to own Las Vegas real estate has its downside. People with bad credit may think it's the only way they can own a home, but you’ll normally end up paying back a lot more than you would with a traditional mortgage. With a mortgage you'll still have a monthly bill but the amount won’t be nearly as high as it would if you decided to rent to own the home.
How Rent To Own Works
Most rent to own situations start out as a traditional real estate lease. At some time you and the owner will then work out a rent to own arrangement, which usually turns out to be quite a few years. A few home owners will be flexible just to get the price they want for their home, others will charge you quite a bit more, in order to make a hefty profit off of your bad credit.
However, if you do have bad credit, renting to own may be your only option at buying a home. Although some don’t like to do it due to the price, for many it’s a better alternative than an apartment. Just like with a traditional mortgage, your paying to own the home instead of just paying rent. In some cases this is fine, although you should make sure to double check with the owner before you agree or commit to anything. This will help you decide if you should rent to own you Las Vegas home.
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