If you dream of living in a big city like Boston or New York but don’t think you can afford a place there, you might want to stop browsing apartments or looking for a home to immediately purchase. According to recent statistics, it might actually be more cost-effective to search for a rent-to-own home. Here’s why.
You Lock in a Good Price
Many times, when you sign a contract to rent-to-own a house, you have the ability to agree on a future buying price for the house. Although you won’t be purchasing the house right away, you have the opportunity to lock in a buying price before you even apply for a bank loan. That means the price of the house won’t continue to rise, even if the homes around it become increasingly unaffordable. Consider it an investment in your future and in a bit of real estate in a popular area.
You Give Yourself Time to Save Money
Perhaps you want to buy a home soon, but you’re not quite ready to swing it financially. In that case, a rent-to-own home in the city is a great idea. You will be able to make monthly payments on the house you want to purchase, but you won’t have to fully commit to it until you’re ready.
You Aren’t Continuously Throwing Money Away
When you rent an apartment, you’re basically just handing money over to a landlord or leasing office without getting anything in return other than permission to stay in the building. When you rent a house with the intention to own, you know that you’re investing in a house that might one day be yours. Some rent-to-own contracts even state that part of your monthly rent goes towards your eventual payment on the house. Therefore, it’s a much smarter financial choice than simply renting an overly expensive apartment in a popular city.