Enhance Your Knowledge On Rent To Own Programs

1. ENHANCE YOUR KNOWLEDGE ON RENT TO OWN PROGRAMS

2. SYNOPSIS 1. Rent To Own Properties: What To Know As A Seller 2. Looking For A Rent To Own A Home? What To Look Forward To 3. Rent to Own Condos: How To Get Your Dream Home Now 4. To Buy A Foreclosed Property Or Not? 5. Plan On Doing Business Abroad? Here’s Why Credit Management Is Crucial

3. RENT TO OWN PROPERTIES: WHAT TO KNOW AS A SELLER As a seller, renting to own properties can be an excellence solution that ensures greater profit and more financial stability. One of the reasons would be that most renters seeking to buy a house choose the rent to own option because of slow financing and low credit scores, hence sellers can potentially get higher prices for their properties, even in a not so bright market. Depending on the property and circumstances, the seller is also entitled to ask for higher rent. Unexpected things happen all the time and it is important to be covered should any occur. Additionally, much like a deposit, the fee paid by renters is non- refundable if they fail to meet the agreement. Another part that can be saving the seller a significant amount of money is not having to use real estate agent services, which can be extremely costly. It’s no wonder the industry is valued at $14 billion in Canada, with just 4% annual value increase . To put it even more in perspective, real estate agent commissions can run anywhere between 3% and 7% or even 10%, depending on the business and location of the property. Imagine that if you are selling a property for $350,000, their part is about $14,000. That is an insane amount of money out of the seller’s pocket for a service that, with a bit of effort, they could be doing themselves. Last but not least, rent to own properties is far less stressful than actually trying to sell a house on the spot. The seller also has the advantage of knowing the future owners, and because the property is about to be theirs, they invest a lot in taking care of it.

4. LOOKING FOR A RENT TO OWN A HOME? WHAT TO LOOK FORWARD TO Rent to own is a very appealing solution to many people and with reason – for the right people in the right situation, there are very few risks and just benefits to reap. Flexibility is one of them. You can enjoy the property without having to worry about the instability of renting. It also allows you the freedom to change your mind should something not be up to your standards, which can offer you a much needed escape ticket. We all know the feeling of living in a place that is just not right, regardless of how much you personalize it or how much work you put in, it just doesn’t feel like the home sweet home we are longing for. Another great pro is the fact that you can benefit from rent to own home, regardless of your bad credit. It may be the case that you tried and tried and just did not qualify for a loan. By entering an agreement where the rules are pre-established and you keep your end of the deal by paying up the associated monthly fees and costs, your credit score might actually benefit from this. Last but not least, rent to own gives you a level of certainty. This is especially appealing for people who dread moving and have a connection with their neighbourhood as you will not be required to change houses so often. This also ensures a level of financial security as moving is quite expensive. Simultaneously, it allows you to create a long-term plan for how much you save and how much you spend as you will be in a better place to estimate since the rent price and final amount owed will be agreed beforehand. It comes as a plus that, as a buyer you have the opportunity to buy a house at today’s price, regardless if over years the property increases in value. With a bit of luck, you might even find a luxury property and lock it down for the future.

5. RENT TO OWN CONDOS: HOW TO GET YOUR DREAM HOME NOW With more and more people looking to own a condo but simultaneously facing financial challenges, the rent to own option means taking the pressure of doing everything in one go. The buyer has to pay in advance a certain percentage of the condo’s full price going towards the down payment, similar to a deposit. The buyer can then move in and start paying the regular pre-agreed on installments over a determined period of time or until the price is paid in full. Renting to own a condo is a brilliant idea, especially if you are looking to move away from noisy neighbourhoods that many times are unsafe and from houses that can be quite old and require refurbishments and extra costs. Condos are modern properties, many equipped with the latest appliances and have an overall fresh and modern look and feel. Additionally, buildings usually incorporate luxurious amenities that will make you feel like you’re at a resort, including spa, pool, clubhouses, barbecue areas, courts, laundry facilities, bars and more.

6. RENT TO OWN CONDOS: HOW TO GET YOUR DREAM HOME NOW Under a rent to own agreement, potential buyers get to move in the condo right away, which means you can start living in your dream home for an affordable price. It is vital that for the next years, the buyer works on improving credit scores and starts saving to ensure everything goes smoothly. Negotiations and clear terms should also be a focus when looking to renting to own a condo. Each contract is different and the two involved parties decide how the price of the condo should be calculated under common agreement. Because most sellers are looking to cover themselves in case the market will continue to experience turbulences, they might overvalue the property and set a higher price. However, this is not uncommon as long as the difference is within limits. The contract’s terms and conditions also need to clearly state what the responsibilities and duties are from both sides. Leaving room for interpretation or imprecise claims can turn into financial disasters and ruin it for both the seller and the buyer. Take for instance if you miss payments you risk not being able to purchase the condo when the contract ends and depending on the seller, you may even lose the money you’ve put towards the down payment or even worse, you risk for the property to be foreclosed and you forced to move.

7. TO BUY A FORECLOSED PROPERTY OR NOT? •Step 1: Find the home you want • This information can be found in newspapers, online or by accessing the services of specific real estate agencies. You will then get in contact with a lawyer representing the bank and will provide you with additional details about the property and about the auction. •Step 2: Ask for a viewing • Similar to not buying a car before you drive it, it is utterly important to view the property. Unfortunately, many of them are unavailable for viewing on request and the only thing you can do is wait for an ‘open house’ event and inspect everything then. A good advice would be to bring along experts that can properly review aspects such as plumbing, moulding, carpeting and others, and evaluate how much any potential repairs would cost. You might want to check out the neighbourhood as well and do some background research, especially if you are planning to raise your children there. •Step 3: Go to the auction and try to close the deal • Surprisingly, even though it is not a rule of thumb, may people are unaware that in the majority of cases of buying foreclosed properties through power of sale there is an auction. This usually takes place at the lawyer’s office and brings together potential interested owners. Because the rules of the auction can vary from one case to another, they are disclosed before the bidding starts. For example, if after they announce the starting price and the bids begin, if you’re holding the highest one and win, you will be expected to pay a percentage of the price of up to 20% on the spot. Following successfully doing that, you will then have approximately a month to close the deal.

8. PLAN ON DOING BUSINESS ABROAD? HERE’S WHY CREDIT MANAGEMENT IS CRUCIAL Proper credit management empowers businesses to protect their finances and profit margins while also decreasing debts. Best practices? It is vitally important that business owners do their homework by collecting all the relevant information about the potential client. Most importantly, that information should be easily accessible or offered at request. Another important box to tick is their financial history, including credit scores, payment records, or outstanding debts. As difficult as this may be to do, particularly in emerging markets, thoroughly checking and contacting individuals that can either reinforce a statement or deny it will definitely pay off on a long term basis. In addition, businesses should make sure the agreement terms are as clear as possible. Disputes can arise otherwise and it can be easy to fall in a trap because of vagueness or space for interpretation. An effective credit management plan will always include crystal clear processes and up to date information, preferably with payment required in advance but depending on the nature of the business. In a simpler way, many times and especially during a crisis and not only, the temptation of taking a risk in an effort to gain a win increases. Such moments are key for decision makers and they need to be thought through. Should payment inconveniences occur, the wrong decision may cost a business more than not taking the risk.

9. THE END For more details, please visit: https://homeownersoon.com/rent-to-own-program