Rent to Own or Rent without Owning
Both of these options can have benefits.
Rent to Own
With this method of renting, you would agree on a price with the landlord to purchase the property once the set period has come to an end. Once this has been done and contracts have been signed, your rental fee will include a percentage which goes against the deposit, so, for example: you could pay an increased rate for two years, and this increase is also the deposit at the end.
This has a couple of major downfalls:
If the landlord falls on hard times, he may be forced into selling his property which would leave you homeless, and there is a good chance you will have lost the money you have paid to towards your deposit.
There is also the scenario that, if you wish to move, you will also forfeit any of the excesses which have been saved towards your deposit at the end of the period.
Rent Without Owning
This is a much cheaper option than renting to own and also comes with some of the similar downfalls. Leases are usually for 12 months so at the end of this you are at the hand of the landlord; who is free to increase the rent. He/she may sell his property which can leave you looking for a new place to live. You will also find you are tied to the limitations of the landlord with regard to what you can do or can’t do. This can limit your freedom and prevent you from building a home.
First Home Australia
We have thousands of land and home packages available in Queensland which fit any budget, and on many occasions the cost of purchasing one of these works out cheaper than renting. If you act now and are eligible for the full grant from the government for purchasing your first home, First Home Australia are offering a further bonus incentive. We are also giving you the chance for your rental to be paid until your home is fully constructed. And until the final contracts have been signed, and you have the keys.
When you look at all that is available, you not only receive the equivalent of many months’ rent, you also have your home that’s a great investment opportunity for many years to come.