If you dream of living in a vibrant community with coastal beauty, move to Santa Cruz. However, the high-cost properties in the area can challenge your homeownership journey. Now, this is where rent-to-own homes come in.
A rent-to-own model is a flexible path to homeownership. After a lease term, this rental agreement allows you to get the property. No wonder the industry projects a growth rate of 6.77% as the demand increases, as reported by Business Wire.
Do you dream of owning a home? Read on to discover how rent-to-own homes can help you achieve this dream!
Test the Property
Are you planning to move into Santa Cruz yet unsure if you will like the place?
With rent-to-own homes, you can test the property before committing to an acquisition. You can experience life on the property and in the neighborhood for a set period. As you stay in Santa Cruz, assess if it meets your vision of an ideal home scenario.
If you cannot see yourself living on the property for long, you can move out when the lease ends. You have the choice of not pushing through the acquisition. Then, look for your dream home in a different neighborhood or city.
Build Equity as You Rent
In a traditional rental contract, your whole payment goes to your landlord. However, this may change in a rent-to-own home agreement. A part of your payment proceeds to the property price, often in an escrow account.
With this, you build equity once you move into the house. It's an investment in your future home without pulling much money for a downpayment. Moreover, you can apply option fees on the principal amount, giving you a share of ownership.
Locked-in Purchase Price
With its volatility, buying a home in the real estate market becomes daunting. Property values can spike due to:
- Demand
- Economic growth
- Location desirability
When this happens, the price of the home you are eyeing in the Santa Cruz market increases.
The best thing about a rent-to-own agreement is that it offers a locked-in purchase price feature. In this setup, this serves as your protection from potential market spikes. It ensures your agreed-upon price remains, even if property values soar during your rental period.
Save for Downpayment
One of the rent-to-own benefits is it allows you to save for the downpayment.
In traditional property acquisition, saving for downpayment is a big hurdle for buyers. It demands a large amount, which is difficult to accumulate alongside other expenses.
How can rent-to-own agreements help? Remember, a part of your rent goes to the downpayment in this contract. It allows you to save for necessary funds while staying in the house.
It also provides a structured method to save. As a result, it ensures a smooth homeownership transition.
Discovering the Benefits of Rent-To-Own Homes
Rent-to-own homes offer a strategic path to one's homeownership journey. From testing the property to strengthening your finances, it is an alternative to traditional home buying. Consider a rent-to-own home to secure a spot in a stunning coastal city in California.
Are you looking for affordable rent-to-own homes in Santa Cruz? At PMI Santa Cruz, we can help you find a home that meets your standards and needs. You can contact us here for questions about our property management services!
