So, you just found the perfect home and it’s in your dream neighborhood. Plus, it was listed by a property agent in Kenya offering a rent-to-own option. In this case, you don’t have to come up with a hefty down payment, but you need to know how to proceed. Read on, to learn how to explore this viable option towards becoming a homeowner.
A Rent-to-own scheme is an alternative to traditional mortgage. This involves, renting a home for a certain amount of time, with the option to buy it before or when the lease expires. A portion of the money is paid upfront and some of the monthly rent also goes toward the purchase of the house. Both buyers and sellers can benefit from a rent-to-own arrangement, but it’s essential that everyone understands the risks.
Types of Rent-to-Own Contracts
- Lease-Purchase Contract – This is a type of agreement that will involve you buying the house by paying the seller in full when the contract ends. This contract legally binds the tenant to purchase the home once the lease is up.
- Lease-Option Contract – This contract does not bind you to buy the house when the lease expires. If you decide not to buy the house for any reason after the lease expires, you can move out just like when you rent a property. But you will likely forfeit any money paid up to that point toward owning the house.
Benefits of Rent-to-Own Properties
You Don’t Have to Qualify: Buyers who cannot qualify for a home loan can pay rent towards buying a house with the rent-to-own agreement. They can then work on improving their credit score or saving towards full purchase.
Test Drive: This allows prospective buyers to live in a home before committing to buying the property. As a result, they can learn about issues with the house, before it’s too late. By following this route, you have the chance to live in the home before you commit to buying it.
Save Moving Cost: Buyers who really love a house and neighborhood, but cannot buy it yet, may live in the house while they gather finances towards full purchase. This reduces the cost and inconvenience of moving after a few years.
Get a Home at the Current Market Value: You can get an agreement to buy at today’s price with the intent to purchase the house later in the future. This means that if the price appreciates in the future, the purchase price will remain the same.
At SAIF Properties, we value and appreciate all the effort you put into your investment. Hence, we do provide a rent-to-own option on meeting set terms & conditions. This is in line with our mission which is to deliver high-quality, luxurious housing developments at affordable cost. https://saifproperties.com/faqs/
Who Should Consider This Option?
Anyone who stands to benefit from the agreement but mostly first-time homebuyers. This is because Rent-to-own agreements will allow you lock-in your purchase price while giving you more time to save up for the big purchase. This is also a good option if you are not quite ready, financially speaking. It will give you the chance to get your finances in order.
Rent-to-own homes do come with an element of risk. As a result, you need to ensure you are dealing with an excellent house agent in Kenya, like SAIF Properties. Also, make sure the contract stipulates all the necessary issues in renting the property as well as the future option to purchase it. Before signing any rent-to-own contract, you should consult a qualified real estate lawyer with vast knowledge in this field. You should have a home inspection too. Read how to select a good real estate company here – Read Up Here
Are you interested in becoming a homeowner? Call +254 728 000 002