Strategy: Property Options

Article 3 – April 2010

Mark Jackson

Mark Jackson is a prolific Property Options Investor and educator, author and problem solver.

To contact Mark email mark.jackson@justdoproperty.com

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Is Rent to Own Sunshine at the End of the Tunnel for First Time Buyers?
Break-through purchasing plan excites First Time Buyers

If the housing market is an orchard, then first time buyers might be described as honey bees. Vibrant and active, their role is invaluable in encouraging trees to convert blossom into ripe, succulent fruit. Dark skies, cold, and prolonged downpours complicate their task, potentially reducing the value of the harvest. In this time of unprecedented financial gloom, even a ray of sunlight would be welcome! When first time buyers start buzzing with confidence, commentators agree, we will begin to see a return to a healthy market.

At Last – Sunshine!

The sunshine has arrived! This exciting break-through for the UK housing market is causing quite a stir. Why? It allows the first time buyer (and not only first time buyers) to move in, settle down and start enjoying their own home without bank finance. What does that mean? It’s possible to escape the rent rut even without a large deposit, or if you are unable to secure a mortgage in view of strict lender requirements! The solution is called Rent to Own. How does it work?

How it Works

With an initial fee of just 3 – 5% of the agreed purchase price the proud home-owner to be can move in, settle down and start enjoying the freedom and flexibility Rent to Own brings. Rent is paid normally each month with a little extra, an instalment, paid on top. It’s this little extra that builds up over a period of years to produce a sizeable deposit by the time the buyer is ready to secure a mortgage. This is where it gets really exciting. The future home-owner has moved from the rent rut to a position of strength. They have a good deposit, and have had time to clear any issues on their credit file. Now they have bargaining power. Rather than feeling the pressure of having to arrange things quickly, Rent to Own homeowners can move at their own pace, finding the best mortgage on offer. Time is working for them, not against them. This gives peace of mind and confidence, like a burst of warm sunshine through thick cloud.

There is a growing number of Rent to Own specialists in the UK, who can offer a home which meets your family’s needs, goals and aspirations. This may be one they themselves bought previously and wish to sell.

A specialist will also be able to match your requirements with one of many sellers who are keen to help others and sell their property through Rent to Own. Everybody benefits. More and more developers are so impressed with the results Rent to Own brings, that they have been actively promoting and marketing new homes through it.

The Benefits

Affordability – a small initial fee gets you started
Easy and understandable legal process
Free from huge legal fees and costs to start
Clarity of simple, solicitor approved contracts
Faster than a traditional purchase
The freedom to improve the property
The freedom to enjoy the property as your own
The security of a fixed purchase price
The satisfaction of gaining from increased value
The freedom to walk away if you want

The opportunity for first time buyers, divorcees or others, who might struggle to get a mortgage, or are unable to afford the deposit for that dream home, is huge. Granted, Rent to Own will not excite every one. But it is already creating quite a buzz among those looking for a simple way out of the rent rut and into their own home.

For landlords too, it’s reassuring to know that the light at the end of the tunnel need not be the train coming towards them. Rent to Own attracts first rate tenants who care for the house as if it were their own home. It gives peace of mind and a degree of security and certainty to both buyer and seller. It is a gift for those who dream of owning their own home. Rent to Own brings the sunshine home.

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