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Thread ID: 94072	2008-10-13 01:28:00	Rent to Own a home	never-u-mind (6500)	PC World Chat

Post ID	Timestamp	Content	User
711909	2008-10-13 01:28:00	O.K my sister is looking into renting to own a home. I know nothing about it other than what she has told me. I'm a very cautious person lol so wonder if anyone knows anything about this. Any thoughts? Good idea, or very very bad. I know the economy isn't the best at the moment but she doesn't seem to care about that. What I know ...... She lives there for a couple of years paying lets just say $500 a week with about $200 of that being saved for a deposit after 2 years at which time she applies to the bank for a mortgage and buys the house for the amount stipulated at the beginning of the 2 years....... sound right???? :waughh:	never-u-mind (6500)
711910	2008-10-13 01:44:00	Do NOTHING until a lawyer has inspected the contract. There's a normally a catch - like pay more for the house than its worth - which would make it really hard to get a proper mortgage later on.	pctek (84)
711911	2008-10-13 01:48:00	Do NOTHING until a lawyer has inspected the contract. There's a normally a catch - like pay more for the house than its worth - which would make it really hard to get a proper mortgage later on. Werd. My best friend did this and got wasted. There is always finer print below the fine print normally stipulating a hidden intrest rate or although you paid for the house the ownership is shared. Lawyer or no deal.	rob_on_guitar (4196)
711912	2008-10-13 03:09:00	If it is through a company, avoid it. I think Blue Peak run something similar, where they purport to sell you a house (for $350,000 for example) as well as give you the bank deposit for it ($50,000) so you can get a mortgage. Except Blue peak actually bought the house for $250,000 and they are making a tidy profit. I'm usually very wary of companies which claim to make something easy. Its why the old grandparents got sucked into blue chip investments.	utopian201 (6245)
711913	2008-10-13 07:59:00	Rent to own is just called a mortgage. If you can't afford the deposit, then especially at the moment (people are talking about the great depression starting like this) you want to continue renting. You don't need debt in a crash. You REALLY don't need dodgy debt in a crash.	Thebananamonkey (7741)
711914	2008-10-14 00:54:00	Hmmm thanks for the input. I would never trust something like this myself but my sister is an impulse buyer who wants a house and wants it now. She showed me it today and although its nice I think the amount they are asking is a lot compared to other larger houses around. I have a sneaky feeling she is going to go through with it ....... she's going to let me know tonight. Her and her partner have saved a long time for a deposit and it would be gutting if she got ripped off. I was kind of hoping that I was going to hear glowing reports about rent to own .... I have a very horrible feeling that she hasn't even approached a lawyer. Not good, not good at all.	never-u-mind (6500)
711915	2008-10-14 03:21:00	You can at least try to compare similar houses in the same area to see how much they are going for, it's hard work, but it is pretty much the only way to see if you are paying too much. Good luck, hope you/your sister don't get burned. Also, if it is through a company, what is the name of the company?	utopian201 (6245)
711916	2008-10-14 04:29:00	Get her to insist on a clause that the agreement is subject to her lawyers approval and also get a valuation done (organise this yourself, don't let them suggest a company to do it).	Jen (38)
711917	2008-10-14 04:47:00	Just asked the better half, she works for a Real Estate company - and as its been mentioned above you end up paying a lot more for the same place by going rent to own, than getting a mortgage through a bank or other reputable home loan company for example. Why pay more $$ than you have to and line someones pocket while they sit back and do nothing.	wainuitech (129)
711918	2008-10-14 06:27:00	The sad thing is, when you finally own the home the rates will be higher than your original mortgage repayments.	R2x1 (4628)
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