Rent-to-Own – A Bad Deal for Appliances

Purchasing furniture and appliances can be an expensive endeavor. For this reason, many people end up deciding to go the rent to own route. It often seems like a better deal to pay a monthly payment rather than paying out several hundred dollars at a time. However, is rent to own really a good deal on appliances and furniture?

Rent-to-own is not a good deal for appliances,
because they end up costing you a lot more.

In reality, renting to own your appliances can become very expensive, fast. Often you’ll be offered a deal that looks great. That washing machine may only cost you $20 a week. However, when you start adding up all the payments and the amount you pay in interest, you can easily pay more than double for that appliance. For this reason, many people refer to these purchases as rent-to-own scams.

While many people are realizing that renting to own is a horrible deal when buying appliances, they often think that renting to own a home isn’t a good deal for homes. They look at these options as rent to own fraud. However, while you don’t want to buy appliances or furniture in this way, rent to own can actually offer you a good deal for homes.

What makes renting to own a home so different from the rent to own scam of appliances? When you rent to own an appliance, you often end up spending double what that appliance is really worth. However, when you decide to go the rent to own route on a home, you aren’t wasting money – you’re actually saving money. Instead of getting a bad deal, buying a home through a lease option agreement is actually a great solution for those who want to buy a home while they are trying to raise their credit or build up the down payment on the home.

Rent to own homes offer several great advantages. One top advantage is being able to occupy the home right away. Instead of having to wait to move in when financing a home, you can get into the home right away and then work on getting everything in order so you can purchase the home.

It’s much easier to qualify for rent to own homes as well. There’s no need to worry about rent-to-own scams here. Even with a lower credit score or a debt to income ratio that needs to work, you can still work on buying a home when you go this route.

As you live in the home and pay rent, you can be building up money towards that down payment you need to make. Often the money you pay can be put towards the down payment amount, which really makes this a good deal for homes. Also, if you need to clean up your credit a bit to get the financing you need, you have time to do so when choosing this option.

Of course, there are a few pitfalls to keep in mind as you’re considering the rent to own option. First, you may pay a sales price that is just a bit higher. You also won’t get a deduction on interest that you would get with a mortgage.

While there are a few pitfalls to consider, overall renting to own a home is a good deal for homes. You won’t get scammed and lose a huge amount of money. You can work towards your dream of owning a home while making sure you don’t waste money.