An addition to this statement as well. People always seem to find renting and owning as two polar opposites, but this doesn’t have to be the case. A landlord can also do something called rent to own, car dealerships do the same. It’s where you can rent for as long as you want, and it is known up front that the rent payments partially contribute towards the cost of the loan, eventually the amount paid via rental is equal to the market value(plus usually whatever the landlord stated they wanted their profit of it being) or a big enough prepayment to be able to afford an actual loan or full payment on it, and at that point the deed/title is transferred over to the renters(or the loan company if they went that route). It’s an alternative to getting a mortgage, and it benefits both parties because the renter could decide to leave any time (once their current lease expires or unless stated otherwise) and the landlord is still getting their profits (and in many cases a higher profit due to the way it works). Generally speaking with these types of agreements though, the rental cost is higher than others to make up for the downpayment as well.
That’s not really an in-between, You’re still a renter and usually get no benefit if you fail to reach the specific criteria in the allotted time. It really doesn’t solve anything other than issues with credit scores or available down payments.
It helps you when you are not sure if you want the building or not though, since it lets you start the process without locking yourself into a long term commitment. Additionally not all rent to own have a specific timeframe to pay it. Many are just cumulative and can be bailed whenever the leases run out, and the only thing the renter is out of is the extra money paid.
An addition to this statement as well. People always seem to find renting and owning as two polar opposites, but this doesn’t have to be the case. A landlord can also do something called rent to own, car dealerships do the same. It’s where you can rent for as long as you want, and it is known up front that the rent payments partially contribute towards the cost of the loan, eventually the amount paid via rental is equal to the market value(plus usually whatever the landlord stated they wanted their profit of it being) or a big enough prepayment to be able to afford an actual loan or full payment on it, and at that point the deed/title is transferred over to the renters(or the loan company if they went that route). It’s an alternative to getting a mortgage, and it benefits both parties because the renter could decide to leave any time (once their current lease expires or unless stated otherwise) and the landlord is still getting their profits (and in many cases a higher profit due to the way it works). Generally speaking with these types of agreements though, the rental cost is higher than others to make up for the downpayment as well.
That’s not really an in-between, You’re still a renter and usually get no benefit if you fail to reach the specific criteria in the allotted time. It really doesn’t solve anything other than issues with credit scores or available down payments.
It helps you when you are not sure if you want the building or not though, since it lets you start the process without locking yourself into a long term commitment. Additionally not all rent to own have a specific timeframe to pay it. Many are just cumulative and can be bailed whenever the leases run out, and the only thing the renter is out of is the extra money paid.