Until you and your family are able to qualify for a home, you are likely paying far more in rent than it may cost to be a homeowner.
The high costs of rent, lead many to consider rent-to-own to help build stability and save your family on housing costs long-term. But once you're interested in rent-to-own in Milwaukee, how do you compare different opportunities? We pick up where we left off in Part Two of this series on camparing different rent-to-own homes in Milwaukee...
Last week we discussed,
This week, in Part 2 of this series we tackle the following:
3. How good of a deal are you really getting?
For most people, buying a home is their largest investment. When you are considering the deal, you should consider a number of aspects.
- How much more are your monthly payments than you could pay to rent it?
Check our www.rentometer.com to see what others are paying for rent.
- How much more is the sale price of the house than you can pay to buy it?
- How much is the upfront cash investment?
- How much money are you risking if you aren't able to buy it later?
- A key consideration, is how good of a property is it?
- Did you get an independent home inspection to evaluate the property? Or will you before you buy?
- Has the property been remodeled by professionals?
Strong Blocks provides Milwaukee rent to own homes that have been professionally remodeled and are ready to live in. After applying and getting approved, Families can select their new home, put together the deal with their independent team of experts, and begin the journey towards ownership of an affordable move-in condition home. The rent payments are the same as normal rent payments, the up-front cash includes the first month rent and security deposit as well as a rent to own fee that goes towards the purchase pice (total ranges from $3,000 to $4,500), and the sale price is backed up by an independent appraisal. Lastly, each home saves the Family at least $100 per month on housing costs when going from renting to ownership.
4. What Happens if You Are Not Able to Close?
A key question when you enter a rent to own agreement is:
What happens if I can't close and buy the property?
With many rent to own deals, each month you could be paying much more than typical rent. What if your house would typically cost $800 per month to rent, but your deal requires $1200 per month until you own it? If you miss a payment and get evicted, every month you paid $400 more than normal rental price of $800 per month. If you are on your 3rd year of a 5 year payment schedule, you would risk losing $14,400. This doesn't even include the upfront payment that may be required.
This one of many reasons that at Strong Blocks, we keep the rent affordable and our prices at market rates. Since it's actually cheaper to own than it is to rent, we believe families want to save money and become an owner by completing their Buying Plan with their team of experts. With this program there is still risk involved, but that risk is limited to a portion of their up-front payment (typically $1,500 to $3,000 total). But in exchange, you get the team of experts, a rent that can't change, and a sale price that can't change for the 21 months.
The Strong Blocks Difference
When comparing rent-to-own homes in Milwaukee, the bottom line is that Strong Blocks does it different:
- We care about Family success so we provide support to get you there: before and after the you sign.
- Our program and its independent experts help families achieve affordable ownership within 21 months.
- Each of our deals are carefully evaluated to be a good and fair deal based on the current market.
- We believe Families should risk only enough to show they have "skin in the game" and they can afford the minimum investment amount that banks typically require when providing a mortgage.
Are you considering homeownership with Strong Blocks? Click here to get started by answering a few questions. For more information on our program, contact our team with your questions.
Written by Mary Leach-Sumlin, Any House Realty
Mary Leach-Sumlin is the owner/Broker of Any House Realty, which she founded in 2017. Prior to launching her own real estate firm, Mary was a Realtor for ACTS Housing since 2007, and then the Managing Broker. She has an office located inside St. Martin de Porres Parish on 2nd and Burleigh. She holds the Accredited Buyer's Representative designation. She has helped more than 200 families achieve their homeownership dreams. You can email her at firstname.lastname@example.org