Many people are stuck between renting or buying a house. What they don’t know is they have a secret option, i.e., rent to own in Perth. This scheme allows people to keep living on rent; however, the amount will be credited towards buying the house instead of giving a dead payment every month. Nevertheless, before making any decisions; here are some of the factors that you have to weigh in:

Financial Situation Before Rent to Own in Perth

The first choice is deciding to escape the rent trap or not. If yes, then remember it’s a substantial financial commitment. Not only you should be ready financially, but also the lender should agree as well. It includes meeting the following criteria.

Down Payment 

Most likely, you’ll have to take out a mortgage loan to buy a property. The conventional lenders require a 20% down payment. This amount is to show the lender that you are committed to paying your monthly instalments. However, there is a problem! To qualify for a mortgage isn’t easy. Several factors need to be fulfilled if you want to get a loan. But, don’t worry if you fail to do so!

There is always an option for rent to buy homes in Perth, WA. This way, you’ll have time to collect the amount for a down payment to buy the house.

Savings 

The down payment isn’t the only saving you have to pay outright. There are a lot of other costs, including the emergency cash you’ll need. So, make sure you have an adequate amount of money saved up to complete such a transaction. 

But, if you are fed up with living on rent, it’s time to visit Stop Renting Perth. They will help you find your dream house through a rent-to-own scheme, meaning you can live there on rent until you are financially ready to buy the same place. A slight difference would be that instead of paying the dead rent, some of the total payment will be directed when you buy the house.

Similarly, there are credit score and debt-to-income ratios to consider as well. If you meet all the financial requirements, you are good to go.

Cost Of Rent to Buy Homes in Your Area

It’s excellent news you are ready to buy a house. However, it would help if you cross-checked the area where you are going to rent-to-buy the house. First, not every area will provide the opportunity of rent to own. Also, if the area has the option, it needs to match your budget.

Preferred lifestyle

Think about where you see yourself living in the next five years. You don’t want to end in a situation where you have been giving instalments to buy the house, only to know you don’t buy it later. It is a common problem with rent to buy houses.These factors will help you decide whether or not choosing a rent to own in Perth is the right choice for you.