Top 4 Advantages of Rent To Own Over Buying A Home In Colorado

 

Ever since home prices in Colorado have increased steeply, residents can simply daydream about owning their dream home – the state’s price of a median home has increased as property value appreciates and it is becoming extremely difficult for individuals to purchase a home the regular way. Infact, every year, the median price of a home in Colorado increases by about 11%, and this percentage is not predicted to go down anytime soon.

 

Additionally, the great thing about Colorado is that all cities and towns within the state have great infrastructure and are good options for families to settle down.

 

However, the great part about an individual wanting to buy a home in Colorado is the availability and wide acceptability of rent to own agreements in the state.

 

Rent to own is essentially an alternative to buying homes the traditional way – that is through a home loan, lease or full payment. In rent to own contracts and transactions, the tenant or the individual looking to subsequently buy the home pays a fixed amount for a mutually decided period of time which usually ranges anywhere between 1-4 years. The tenant is also required to make a down payment at the end of the contract, in addition to paying a monthly rent and a fixed amount called the rent credit. The contract allows the tenant to purchase the said home at a certain point in time for a fixed amount, and the payments made earlier will be contributed and considered in case the buying option is exercised.

 

Advantages of rent to own in Colorado

Plans concerning rent to own Colorado are especially advantageous and attractive for individuals for the following reasons:

      1.      People with bad credit can own homes

Individuals who have a bad credit history often have trouble qualifying for a home loan and hence can instead purchase one through a rent to own agreement. Since the agreement spans a period of about 4 years, they can work towards bettering their credit score in those years and get a loan if needed when the time comes to purchase their home. The credit scoring scheme is pretty strict in Colorado and hence a rent to own agreement can benefit residents greatly.

      2.      People can lock in a price

Since home prices are significantly increasing in Colorado, individuals can lock in a purchase price for the future by making use of a rent to own agreement. If, however, the prices in the market are below their decided price at a certain period in time, they can always back out of the agreement with no questions asked.

      3.      People can take their time to decide

Often people can be indecisive and not know whether a home is the one for them. With a rent to own agreement, they can take their time, live in the home for a certain period of time and decide whether or not they want to buy it. Living in a home also reveals problems that you don’t note otherwise and helps you make a sound and well informed purchase.

      4.      People can make a wise and economical decision

The cost of living in Colorado is considerably higher than that of other states in its surroundings and about 39% higher than the national average in the United States. Rent to own options provide individuals with safe, economical and practical ways to buy their dream home in a state like Colorado where property prices are increasing steadily. If property prices keep increasing steadily, an individual can secure a future price for themselves to buy a home. However, if property prices decrease in the future, the individual still remains safe and can back out from purchasing the house at any time.