Why Rent A House When You Can Own It?
If you find a house in Barrie but your bank declines to give you a mortgage, we have other options. For those wanting to own their own home, Rent to Own represents a great alternative that can let our clients qualify for a mortgage in three years’ time. Our Rent to Own company can correct whatever issues are preventing you from obtaining a traditional mortgage right now.
Whether it’s because you can’t afford the down payment, have bad credit, are self-employed or have irregular income, or you’re a new immigrant, a good Rent to Own program doesn’t just let you “buy today.” It will correct the issues which are blocking you from getting a mortgage and let you take over the mortgage when the Rent to Own term ends.
Provided you find a Rent to Own program which is focused on helping you actually own the home, Rent to Own may be the ideal choice. If you want to live in Barrie but your bank won’t let you, keep at it — Rent to Own may be just the solution you need!
Why should you consider Rent to Own in Barrie ON? Rent to Own is an excellent way to purchase a home especially if other options are too expensive or unavailable, and Barrie is an excellent place to buy. Of course, when you are thinking of buying a home, you want a stable place with a diversified economy and the amenities to support your lifestyle. Barrie fits all those criteria perfectly.
With Rent to Own, neither of these are an issue.
History / Statistics:
Barrie is a popular Central Ontario city, located in the Greater Golden Horseshoe and a much-loved place to live for those who commute to Toronto. Barrie’s economic climate is strong thanks both to a strong local business climate and a beautiful historic downtown that draws tourists from all over the world.
Residents of Barrie enjoy dozens of annual festivals and a vibrant city life, with plenty of recreational boating in the summer and easy access to skiing and other activities in the winter. Barrie’s population of 136,063 is small enough to be comfortable while its location in the Greater Golden Horseshoe means big-city amenities are only a short drive away.
From a real estate perspective, the average home sales price has been relatively stable, rising only 6% from January 2013 to January 2014. This means the appreciation factor is relatively constant.
Rent to Own in Barrie
With its location in the Greater Golden Horseshoe, the economy has been strong for a long time and looks like it will remain that way. Real estate values have stayed relatively consistent, while housing prices are inexpensive enough to be within reach of most families.
This is not all you want to consider, of course. When contemplating a Rent to Own purchase, it’s important to look at the proposed contract also. You want to be sure the contract includes a strong exit strategy which makes buying the home at the end of the rent term feasible.
The calculation is simple. Before you enter into a Rent to Own program, you want to be confident that your home value will stay strong and will rise to be equal to, or even greater than the home’s Future Purchase Price. This is because when you sign a Rent to Own contract, the future purchase price you agree to is going to be higher than the market price today.
Therefore, consider the following tip.
When you look for a Rent to Own home in Barrie, check to make sure the Rent to Own contract lists the future price you will pay to buy the house when you leave the Rent to Own program. Then, look up the average historical appreciation values in Barrie and compare them to this future price.
If you calculate that the home will appreciate to a market price of $230,000 by the time you will purchase, you want to make sure the Rent to Own contract lists your future price as $230,000 or less by the time you exit the program.
If the future purchase price is too high, you’ll never have a chance to exit the program and buy your home as the bank will not issue a mortgage for that price.
It turns out that one of the main reasons a Rent to Own program fails is this appreciation question. As you look for a Rent to Own company, make sure they use a fair appreciation factor that will allow you to actually purchase the home.
The other thing you must carefully consider is the strength of the local real estate market. If local real estate prices fall over the duration of the Rent to Own program, you will also be unable to buy the home at the agreed-upon price.
Fortunately, Barrie’s real estate market has been strong in recent years, making Barrie an excellent place for considering Rent to Own.