Renting? Let's look at the numbers.
Here, we compare “Renting and Saving” with “Renting to Own”. Guess which has you saving tens of thousands of dollars in the long-run…?
Making the Right Investment
Real estate is a long-term investment that accumulates solid capital, and can be very prosperous for the homeowners who deposit their resources this way. Owning a property provides a strong foundation for families who are building their future. On the other hand, a family that rents actually ends up losing money, even if they don’t gradually save their resources for homeownership.
Let’s talk about the potential for owning your own home though Rent to Own by presenting two different “renting”/house-buying scenarios:
A) Rent and Save
B) Rent to Own
Let's say you want to buy a $200,000 house – and you have less than 20% down payment (less than $40,000).
A) Rent and Save to Buy a House – Saving $500 a month until you have the $40,000 down payment for home will take you about 7 years. Meanwhile, you’ve paid out, i.e. lost, at least $90,000 in apartment rent. And now the house you want to buy has escalated in value and costs almost $300,000. You will pay an enormous $60,000 as a down payment to buy that house – and your savings will always be playing catch-up with the market price.
B) Rent to Own to Buy a House – Your monthly payments are doing triple duty: paying the rent, accumulating down payment and fulfilling your future of homeownership. Meanwhile, you’re clearing up glitches like credit issues. At Rent to Own Home we call all occupants “Home Owners in Principle” – not renters.
Your purchase price is established in the beginning, but the beauty is, anything you do to add value to your house adds value and equity -- directly into your pocket. We’re sure no one else has offered this remarkable kind of “tenancy” to you!
It isn’t a question that (B) Rent to Own is the better way of affording a home.
Look at the numbers, look into the future you want to create for yourself. Rent to Own is worth considering, when you compare the long term benefits over the short term.
Who Can Help You
All the Help You Need, At R2Own Home
A Rent to Own transaction may seem a little tricky, but we’ve got it perfected. Stop researching and stop worrying – we can help you with every aspect of buying a house, from establishing your down payment to repairing your credit so you can qualify for a mortgage. (Check out our great “5 Secrets” article about how to own a home despite bad credit.)
(And our real estate experts can show you how buying a house with even less than 5% down payment is possible!)
Our dedication to your success is why we at Rent to Own Home also have an 89% success rate in helping Canadians like you become homeowners.
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