Purchasing a home is a significant accomplishment. While it may appear difficult at times, the numerous advantages of having your own home make it all worthwhile.
If the cost of purchasing a new house is prohibitively expensive for you, you might look for a licensed real estate firm like Nea Rental Properties who offers a rent-to-own mortgage plan. This one-of-a-kind contract allows you to apply a portion of your lease payment toward the purchase of the home.
Does this idea appeal to you?
The rent-to-own arrangement allows you to buy the property after the rent-to-own tenure, which can range from a few months to a few years, or to walk away if you don’t like the residence.
What Is The Difference Between Renting And Buying A House?
Renting to own is a hybrid approach to house ownership in which all or a portion of a lease payment is used to create equity in a home over time. It is typically a method in which the owner of a home permits a renter to accumulate equity without the need for a down payment or a mortgage.
Benefits Of Renting-to-Own
- A rent-to-own property is an excellent option for buyers or tenants who are unable to obtain house loans due to poor credit. A rent-to-own mortgage provides you with the chance and time to rebuild your credit. You can use your rent-stay time to plan your funds for debt repayment. This, in turn, will assist you in correcting and improving your credit ratings.
- You do not have to buy the house if it does not appeal to you. The rent-to-own contract’s adaptability is a desired feature. You have some time to test the house before deciding whether to buy it or leave it at the end of the agreement.
- If you are unable to purchase a property, you might begin by renting one and eventually become the owner when the lease expires. This allows you to save money for the down payment on a house. Alternatively, if you decide to walk away when the contract expires, you can use the money to buy a different home entirely.
- Rent-to-own systems can be an excellent option if you prefer to sit back and enjoy the game. You have the opportunity to fine-tune your market knowledge. You can continue to live on rent if property prices are high. You can look forward to purchasing a home later on, when prices have dropped and stabilized. As a result, this structure gives you enough leeway to find your ideal home.
Renting may appear to be the greatest option in the near term, but here are five compelling reasons why having your own home can provide significant value for you over time.
Advantages Of Buying A Home
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No Landlord Problems
When you own your own home, you have complete control. You do not have to deal with a landlord; whether it is little maintenance or a total remodel of your entire property, renting has some pains. Water, power, maintenance, and practically everything else is provided by the landlord.
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Living security is assured
Your family’s stability when renting is dependent on the decisions of a landlord, who may suddenly decide they no longer wish to rent out their property. Moving is expensive, unpleasant, and can be emotionally draining, especially if you have to relocate unexpectedly. When you own your own house, you can rest, easy knowing that you are in charge. That is invaluable.
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There is no uncertainty
There is no worry and anxiety associated with the potential of the landlord prematurely terminating the lease arrangement. Furthermore, there is no need to renew the lease agreement every year and re-negotiate the rent.
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You will gain equity.
Your equity is the amount of money you own in relation to the value of the property. It increases when the market value of your home rises (or when you make extra payments on your mortgage).
When you own a property, you can potentially leverage your equity and access it by redrawing your loan, borrowing on top of your equity with an additional advance, or refinancing your mortgage. These monies can subsequently be utilized for a variety of purposes, such as home renovations, the purchase of a new car, or even a memorable vacation.
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You have more control over costs
When you rent, your landlord may decide to raise your rent, leaving you with no choice except to accept it or face additional moving expenses. While property ownership comes with a variety of expenses, such as mortgage payments and interest rates, these are unlikely to grow significantly suddenly. In other cases, you may even be able to manage them, such as by selecting a fixed-rate house loan.
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You can design your dream home.
Landlords are frequently reluctant to allow renters to renovate their home, even if you believe you will improve it. When you own your own home, you have unlimited creative freedom – you can renovate the bathroom in a jungle theme or paint the walls in incredibly vivid colors without fear of being judged. Home upgrades often boost the value of a property, therefore if it is your home, every dollar that increases in worth will be money in your pocket when you sell!
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Improvement of your Credit Score
One of the most crucial elements influencing a person’s credit score is the duration of credit history. An excellent strategy for raising a credit score is to increase the average term of credit accounts, which may be accomplished by buying a home.
Because mortgages normally last 15 or 30 years, having a mortgage on your credit history is an excellent strategy to increase the average term of your credit accounts. In addition to increasing the average length of credit accounts, paying your mortgage on time each month demonstrates that you’re a responsible borrower, which not only improves your credit score but also increases your chances of approval for future credit accounts.
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Ownership Pride and Community Involvement
Owning a house gives many purchasers pride not only in their home but also in their community. Another nice benefit to consider is the pride of ownership and community involvement that comes with owning a home.
Many homeowners are quite proud of their community and the ties that come with being involved in it. It is difficult to create ties with neighbors, local politicians, and local community service professionals, such as local firefighters, if you do not own a property and are not interested in the community.
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Your mortgage payments are a tool for you to save money.
While it may not always seem like it, your mortgage payments are a means for you to save money. Most repayments include both principal and interest, which means you’re contributing money to owning more of your house. While renting appears to be less expensive, you will not receive any of that value back in the future.
Nea Rental Properties is the way to go if you’re looking to buy a new home or want to rent-to-own. We are a Northeast Arkansas real estate investment firm specialized in the acquisition, development, and management of single-family, multifamily, and commercial properties in the Jonesboro, Paragould, and neighboring towns. If you need to sell your property, we would appreciate the opportunity to make you an offer. If you need to rent a property, please let us know; we rarely have vacancies, and when we do, they go quickly.
With as little as $3000 down payment, you can own your house with payments equal to or less than rent! We are don’t care about your credit score!
Do you want to rent a house or rather buy? Please contact us right away.
