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When you are considering a Home Purchase you want to make sure you buy in an area that is Stable, has a diversified Economy and has the infrastructure and amenities to match your lifestyle. Brampton seems to meet those criteria!
Would you like to own a home in Brampton but have been refused financing by your Bank?
Have you considered Rent to Own in Brampton? Brampton has had a strong economy for years and the economic forecast seems strong. Real Estate values remain consistent and housing prices are within reach of the average family.
History / Statistics:
Brampton, located in Southwestern, Ontario, is a very popular suburb and a Great location for families! The economic climate in Brampton is strong and as a result, housing prices and appreciation factors remain consistent for this Peel Region city! The infrastructure of this city is considerably refined and developed.
With a population of approximately 530,000, Brampton is a city which features amenities you would expect from a larger city but small enough to have a small-town atmosphere.
These are factors to consider when looking at a Rent to Own Property. When entering a Rent to Own program in Brampton, you want to make sure there is a strong Exit strategy in place so you can purchase the house in your name at the end of the Rent to Own term.
One thing you want to feel confident about when considering a home purchase with Rent to Own is the house value will remain strong and will be equal to or greater than the Future Purchase price of the home. Remember…when you enter into a Rent to Own Contract, the price you buy the house for will be greater in the future than it is today.
Here is a tip…
When considering a Rent to Own Program in Brampton, Ontario, the Rent to Own contract should state a future purchase you will buy the house for when you exit the program. Make sure you research average appreciation values for the area and compare this to the future value the Rent to Own program states you will buy the property for in the future.
If the average appreciation for Brampton, Ontario homes is 5% per year and you enter into a 3 year Rent to Own contract in Brampton to buy a $ 200,000 property today…what is the anticipated value of this property in 3 years?…let’s use simple math….appreciation will add $ 10,000 ( $ 200,000 x 5%) to the value of the house each year and without compounding, this house should be valued at $ 230,000 in 3 years…again using simple math and no compounding.
SO if the Rent-to Own contract you are considering states the future purchase price is higher than $ 230,000, there is no exit from the Rent to Own program, the future Purchase Price will be higher than the actual property value.
This is one of the main reasons Rent-to-Own programs fail. When the bank you approach to finance your future purchase appraises the property, the value will fall short. As a result, the down payment and payments you have made to the Rent to Own Company will be lost. Watch out for companies which use appreciation factors which are higher than area average to determine the future purchase price.
When considering a Rent to Own program, we can not stress enough that you purchase a property where the Real Estate market is strong and has been strong in the past. Brampton, Ontario has shown a strong Real Estate market in recent years and would be a great place to consider a Rent to Own Program.
A Closer Look at Rent to Own in Brampton:
Let’s say you have chosen a house you want to rent to own somewhere in Brampton. You have approached your Bank but the Bank said no. What options do you have? Rent to Own is an excellent alternative to buying a house today and qualifying for the Mortgage in 3 years…
When you are considering a Rent to Own Purchase in Brampton, you “must” go with a Company that has a plan in place to correct the issues which prevent you from getting a traditional Mortgage today. In most cases, banks are turning people away for the following reasons:
A good Rent to Own Program will allow you to “buy today”…correct issues as per above…take over the Mortgage at the end of the Rent to Own Term. Please make sure this is the main focus of any prospective Rent to Own Program.
So…if you are looking at purchasing a home in Brampton but your Bank says “NO”…don’t stop there…Rent to Own program in Brampton may be exactly what you are looking for!!