Profit From Rent To Buy Schemes
July 05, 2010 // Posted by: qwcdirect // Category: Property Investments
In most cases, property value increases over time especially if a building is in an uptown area and is well maintained. Rent to buy schemes have become very popular because they make it possible for tenants to sign long-term lease contracts when they are moving in and purchase the property at a later date if they want to.
In these schemes, the buying price is agreed on as soon as the tenant moves into a house. The advantage with this kind of plan is that if the property value rises, the tenant automatically get some home equity. The rent the tenant pays is usually deducted from the buying price therefore the final purchase price is low.
This kind of program is suitable if you are buying a home for the first time and you do not have the funds that are required to make the purchase at the moment. It is an easy way of raising large deposits for home purchase.