The Benefits of a Rent to Own Agreement
Buying a rent to own home in Salt Lake City is a good way to take advantage of the current real estate market and prepare oneself for the future property values. Here is an overview of the housing market and how you can maximize rent to own homes.
Salt Lake City Housing Overview
Utah state is undergoing strong economic growth and this has been the trend over the past couple years and it is expected that the trend will remain steady all through the year 2018. The 2017 National Housing Forecast by Realtors estimated that the real estate market would nationwide slow down slightly compared to the past few years with residential real estate price increasing by an average of 3.9 percent.
The forecast has placed Salt Lake City in the top 25 housing markets and has ranked it 16th nationally. The forecasted price increase is 6.7% which is almost 3 percent higher than the national average.
The national property value increase of 3.9 percent may seem quite small, but the consumer price index is estimated to increase with 2.5 percent. What this means is that the home values will increase more than the rental rates posing an advantage to buyers who want to buy homes on a rent to own basis.
The Advantages of Rent to Own Homes
With rent to own home choice, you can avoid the non-private, traditional apartment setting. When most people think of renting, the first thing that comes in mind is an apartment. The rent to own home choice is good as it offers you much flexibility because you are not stuck in an apartment with no yard. The rent to own homes transactions are typically done on townhome, houses, or condos. You will find that some of these homes have swimming pools, lawns and often times gibe you complete access to all the amenities if the home is situated in a community or sub-division.
Truth be told, the lending market today is tough right now and this might even get tougher. With the rent to own choice, you get a better way of qualifying than the traditional mortgage.
With the banks and mortgage companies increasing the lending restrictions and few people with the 20 to 30 percent down, renting to own a home allows you to work on both your credit and down payment money. It is no longer necessary for you to wait to move into your dream home due to credit and money.
Often, most of the homes in the rent to own market are in good shape. Some of them are homes that could be sold traditionally leaving you with a huge inventory of nice looking house to choose from.