Having a home of one’s own is part of every ambition, but it isn’t always that easy. In case one is not able to purchase homes via the conventional path, one can look for rent-to-own homes. The way this works is that individuals need pay the house rent for a specific time period with the intention of purchasing the property after that period. Of course, to consider rent-to-own homes as serious options, it is important to know everything about living in a Canadian city.
Eligible Canadian cities
Here are the names of the Canadian cities where one is most likely to find rent to own by owner listings:
What makes rent-to-own options suitable for homeowners?
The rent-to-own system allows tenants to regard themselves to treat rented homes as their own, thereby leading to healthy relationships with landlords as opposed to normal rented houses. The landlords can easily treat the homes as assets to be sold off while receiving periodic rent payments in return. Here are the benefits of this system for landlords or home owners:
1) All repair and maintenance issues are managed by the tenant
2) The landlord will receive a pre-determined sale price once the tenant decides to purchase. This will not change as per market vagaries.
3) The deposit paid towards this rental is collected right at the start of the rent period and is non refundable. This helps the landlord feel secure as it covers expenses of the tenant is unable to purchase the house at a later date.
To search for rent-to-own homes within Canadian cities listed above, it is necessary to log on to the Internet and take a close look at various options. Once shortlisted, further details about homes can be retrieved by calling on the given numbers and scheduling meetings.
Buyer can build a healthy credit score
A buyer will need to make the rental payments and a small part of the home’s down payment every month. Building up the down payment will eventually turn the tenant into a home owner, and this is very helpful in building a good credit score. In case an individual is already suffering due to bad credit, such a move will definitely bolster ratings. So, along with the house, the person will be in a better place to take credit cards and loans in life as well.
Owning a home without the conventional method
In most cases individuals pay house rent for several years at a stretch. As a result, many are unable to save money for owning homes at a later date. Instead, the rent paid here contributes to the down payment of a house, allowing individuals to become proud owners. Getting a home of one’s own is a dream for many, being fulfilled by this method.
Taking a rent-to-own home will also secure one from rising rental prices. Every year, rentals tend to rise by a few points, which could get difficult to pay at a later date. One would always be paying the same rent in this case.
Renovate homes during the rental program
RTOC (Rent To Own Canada) considers tenants as owners as soon as they move in. Any kinds of improvements, be it new tiles in the bathroom, new floorboards in the drawing room, or painting walls can be done. There are no restrictions on the type of improvements that can be made, just like a home owner.
Purchasing the home before expiry of lease
Over a period of time, if the credit bureau considers an individual’s credit to be in good standing, he or she is eligible to purchase the home early. However, the landlords in some cases want tenants to live in their houses for at least 12 months before doing so. Remember to check with the landlord before taking this decision.
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Finding out about the new neighborhood
One of the most appropriate ways of knowing about an unfamiliar neighborhood is to first find out more about it online. There will be many places offering similar properties. Find individuals as references who have lived or are currently living in the same area.
How about Calgary?
Planning to move to Calgary? It would certainly help to know more about the largest city in the Alberta province. It is present east of the Rocky Mountains, with the province bordering the United States. Its economy is primarily based on petroleum. Calgary has one of the best business friendly environments in the world.
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Calgary has a large population of immigrants, especially from India, China, and Philippines. It has higher living costs than smaller Alberta towns but is very affordable in comparison to other Canadian towns.