property for rent Archives - listproperty4free.com

A Guide for Rent to Own Homes in Perth

The traditional route to homeownership requires enough stream of income to be eligible for mortgage and down payment. A new alternative has been launched since most people cannot afford to jump headfirst into property ownership due to financial reasons. Rent to own homes provide middle-class and working families with the opportunity to rent houses and then opt to buy the property before the lease expires. For this reason, there are segments within the contract for rent to own agreements.These include:

Standard lease formalities and conditions
Option for purchase

For your best interests, you’ll need a guide to assist you through the process. Our team has assembled a list of things you need to know as you progress through the stages of owning a home.

Things to know about Rent to Own Homes

Non-refundable Initial Costs

An upfront fee is paid to the seller at the beginning, which allows you to extend the date for purchase. The amount or percentage of this fee is negotiable, but it solely depends on the renter. There is no set value for the option fee. Typically, it is around 1% to 5% of the total offer price of the property. The option fee does not affect or add to the purchase price. It is entirely separate.

Types of Contracts

There are two types of rent-to-own property contracts. These are:

Lease-Option
Lease-Purchase

As the name suggests, lease-option provides you with a choice to either buy the property at the end of the lease or to look for another. It poses no obligation to go through with the purchase. You do not have to keep renting or hustle to fully pay for the house. The offer for purchase expires as the lease ends. It ends your right of purchase, whereas lease-purchase legally requires you to buy the property after the lease expires.

To save yourself from legalities, you should get the document reviewed by your attorney. If you end up signing a Lease-Purchase, you will have to purchase the house even if you don’t financially afford it.

House Price Quote

These agreements sometimes lead to early price quotes at the beginning of the lease, which is higher than the market rate for the same rent to own properties nearby. On other occasions, the price for the property is quoted after the lease expires with respect to the popular listings at that moment in time. Many buyers try to lock the price initially for properties that have escalating values.

Rent Price and Credit for Lease Term

The rent remains constant throughout the term of the lease without any hitches. You have to identify the percentage of rent that adds to the purchase price of the property. The rent for rent-to-own homes is kept higher to make up for the rent credit you’ll receive. Some sellers provide the offer to relocate the option fee towards closing costs.

Investment Factor

Traditional renting services put families in a financial loop without getting any closer to buying the property. The rent-to-own homes make you one step closer to a significant investment factor. Many companies assist in this transition without hassles. Similarly, experts at Stop Renting Perth create a roadmap for successful homeownership. Bringing in a medium of housing experts will help you save time and money in the long run. They will make your investment worth it.

Frequently Asked Questions

How much money do you have to put down on a rent-to-own home?

The upfront costs of a rent-to-own home range from 1% to 5% of the total purchase cost usually. It is a reasonable price and differs for every type of home. These prices are much higher than the general prices in the area because the upfront costs can be relocated in the end towards closing costs.

Is it better to opt for rent-to-own homes or to just rent an apartment?

Stop yourself from falling into the trap of traditional renting, where you won’t be able to save enough to buy a house because you’ll be too busy spending on living costs monthly. Stop Renting Perth is one company you can rely on to create a successful roadmap towards homeownership.

Are rent-to-own homes legit?

Yes, rent-to-own homes are very legal and authorized. They are developed on state-recognized contracts such as lease-option and lease purchase. Before opting for rent-to-own, you should familiarize yourself with the process to avoid any legal issues.

Author: Harry Henrik

Buying vs Renting – should you buy a house?

Buying or to renting a place to call home is one of the questions on many people’s minds at a certain point in life. If you are settled in a place with a good job and can foresee yourself staying there in the nearest future, would it be more advantageous to continue to rent or take out a mortgage?

The answer generally depends on individual’s choice, as you may have different values to the usually home buying route. Of course, there are benefits to renting a house, but the advantages of buying supersede that of renting. It gives you a sense of security and satisfaction in having a place to call your own – permanently. With that said, outlined below are a few key benefits you enjoy when you buy your own home as against renting.

1 – Equity building

One major benefit of buying a home is in building equity. As you make your mortgage payments, the amount of money you owe on a home reduces. And the more your home value increases, the more money you save. You can even consider mortgage as a forced savings plan. When you pay rent, you are technically making someone better off by paying their mortgage and building up their equity. Of course, renting can initially be cheaper than buying a home, but many see it as throwing money down the drain. If I may ask, why do you want to be building savings for someone else when you can contribute towards your own investment?

2 – Modify to taste

It is always fun to create a living style that is all your own. As a homeowner, you can always make changes to your home to suit your taste and preference. You can renovate, customize, and paint the walls any color you wish etc. In fact, there won’t be anyone to tell you what you can and cannot do. But if you rent a house, you are always at the mercy of whatever the homeowner will allow you to do.

3 – Unparalleled stability

The stability you experience when you have your own home is unparalleled. You understand that if you lock in an interest rate your payments remain constant. If you rent, you have no control over the increments in rental payments. The property owner may evict you or even sell the home from under you at will.

Final thought about buying vs renting

Renting a home can be a great place to start. But when you buy your own home you have a sense of permanence, and it also contributes positively to your financial future as you are constantly building equity. Additionally, buying a home provides security for your family knowing that they have a place to call their own.

Opportunity Costs (rent vs. buy)

Everything regarding the Industry of real estate is rising, especially home prices and interest rates. But the real question that you must ask yourself is that which would be better for you, to rent or buy your next property? There are different aspects that you need to put into consideration if it is better to rent or buy. One of the most important factors would be how long are you planning to stay in that specific property, how high is your credit score and income now? How about we take a look at some of the advantages and disadvantages to this very common question.

BUYING

Regardless of what you might hear, there are many benefits to home ownership. Always put into consideration that the value of your home can increase through time which makes it a proper investment regardless if you are planning to keep the property or not in the long run. To most people, having a home to yourself and not having to deal with a landlord is a blessing of its own. You can choose to renovate and change up your own house in your own way without having to think about when the contract might finish or not. The disadvantages of buying your own property is knowing enough that you are responsible for all that needs to be repaired and that is not an easy thing to keep in mind so you will be watching out for everything and being alert knowing your next fall can be costly to the property. When purchasing a house you might require a chunk for the down payment to be paid which would make it harder for you to qualify for any kind of insurance for the mortgage or even property taxes.

RENTING

Renting makes life easier and much more sense for many people. For example, you can be living alone in a nice area where the home prices are too high for your budget so it would be better off renting a one-bedroom location that is the logical choice for that person obviously not including his/her occupation and preferences.

The best advantages of renting is knowing that the repairs are not on you but rather part of the deal and knowing that it would be easy to relocate if there are any problems to arise. But the disadvantages of renting are actually more annoying than you think because it’s like you are living in someone else’s home knowing that you can’t make any long-term adjustments and at the same time you earn no return on your payments as monthly rates are rapidly increasing. Most people don’t have this knowledge but renting doesn’t help with your credit score either and knowing that the homeowner is just renting the place to others, they aren’t so motivated to make changes to the house unless it’s necessary.

To most people who have the money to afford buying a house, they know in the long run that buying their home will become an investment and that it would be cheaper to purchase the home now rather than renting and sending away rent money that you can be using elsewhere productively. But to others who cannot afford buying a house at the moment, renting to them would obviously be cheaper than purchasing anything at the moment. Just put into consideration which one might fit your lifestyle the best such as:

RENTING WOULD BE BEST IF:

Planning to live in the same area for less than two years
Planning to maintain flexibility and mobility
Working on repairing past credit history
Planning to save money for a proper down payment

BUYING WOULD BE BEST IF:

Planning to live in the same area for more than two years
Wanting to build investment equity through time
Looking for better ways for tax deduction
Having the feeling of stability

The real answer to this question of having to buy or rent is actually quite easier than you can imagine. It comes down to five questions that you need to ask yourself for making such a difficult decision which are:

The time that you plan to stay in the future home?
Do you want something to be stable or something to remain flexible?
What can you afford and what does your budget help with?
Can you currently afford to be responsible for home repairs if you plan to purchase the house?
What is your career path and what are your family goals?

But when it comes to rental properties you need to remember that it requires a security deposit just in case of damages and ability to assure the person renting won’t bail under any circumstances without having to pay upfront as well. Just put into consideration about the location of property as well as the location of your workspace or schools if children are involved.

Conclusion

In conclusion, try to consider all the places that you have chosen to rent in the past, For each place that you have lived, try to make a list of the things that you didn’t really enjoy about the place or the service of the landlord so that you won’t have to put up with the same issues again. Although there are some renters who actually don’t have to ask and do what they need to regardless if they are renting long-term or short-term because some people just can’t handle staying in a place and having to wait for someone else to change it for them. But when you have your own place and you are not renting, then obviously you can do what you want when you want without having to put up with anyone or dealing with anyone about your own personal matters in the household.

Author Bio

Mohamed El Zaafarany is a digital marketing consultant with interests in the travel and real estate industries who loves to connect businesses with their target audiences.

zaafarany.com

Image: Image by Nick115 from Pixabay

Property for sale and rent in egypt

Renting vs Buying: What to Consider

Buying a house is the pinnacle of success—or, at least it used to be. It seems as though more and more people are abandoning the popular dream of homeownership and setting their sights on financial accomplishments that are more realistically attainable, like luxury vehicles, designer watches, and worldly travels.

That’s not to say purchasing a property is entirely off the table, though. There are plenty of affordable properties under 20k that you could buy without sending yourself into debt for several decades. There are two sides to every coin, but ultimately, there’s no single “correct” answer—it all comes down to your personal priorities. If you’re debating renting vs buying, consider these points to help you decide which option suits you best.

What’s on your time horizon?

If you’re thinking about buying a house, make sure to consider your timeline in two to 10 years from now. Will you be in the same city? Have the same job? Are you ready to settle down?

The people who like to rent are usually those that value flexibility and mobility; they don’t want to be tied down to a 15- or 30-year mortgage that locks them into one location. Of course, life happens and plans can always change, but if you have to sell your home shortly after buying it in order to move to a new city or place your child in a better school district, for example, you could lose money on your initial investment.

Bottom line: Purchasing a home is an investment in your future, but it’s a long play that will require you to live in the same place for at least two years. Just like any investment, there’s risk involved should the real estate market crash and you owe more on the property than what it’s worth.

How is your credit looking?

You’ll need a positive credit history whether you’re applying to rent or buy a house, but it’s much more important in the case of the latter. Most of the time, homeowners rely on financing to purchase a property; it’s pretty rare for someone to have a few hundred thousand sitting around in cash that they can use to complete the sale in one fell swoop.

Lenders will look at several things when reviewing your mortgage loan application, including your age and income, but credit history is one of the most important qualifiers. Not only do you need a strong credit score to finance a house, but it’s in your best interest to take the time to increase your score as high as possible in order to receive low rates.

A good number demonstrates less perceived risk, so the lender will be likelier to charge less interest on top of the principal balance—saving you a significant amount of money in total borrowing costs in the long run.

Bottom line: If you’ve missed a few bill payments in the past and are sitting on mismanaged debt, you should clean up your credit history before trying to buy a home.

Do you have money saved up?

One of the biggest differentiators between renters and buyers is the money they have saved up in the bank. Even with approved financing, you’ll need to place a sizable down payment—or, the portion of the purchase price that you pay upfront in cash—to show the lender you’re invested in the property and likely to repay the loan.

Many people think they need a down payment of at least 20% of the total price in order to buy a home, but that conventional wisdom doesn’t apply much today. While it’s true that a 20% down payment can help you avoid private mortgage insurance and save you tens of thousands of dollars in the long run, this barrier to entry is pretty steep for first-time buyers.

You can buy a home with anywhere between 5-15% down upfront, and there are also down payment assistance programs that can help you come up with the cash. Renting will also require a down payment, security deposit, and money on-hand for application fees, but these costs are usually cheaper than a mortgage and its affiliated costs.

What many people fail to realize, though, is that every rent payment they make likely goes toward paying off the landlord’s mortgage, and the price comparison isn’t that far apart. For example, if rent costs a thousand per month, a mortgage payment might be only 15% more. Rather than throwing that money down the drain on rent, those funds could be better applied to building your own wealth in home equity and increasing your net worth. You could also look into rent-to-buy homes in your area that can help you achieve the best of both worlds.

Bottom line: You’ll need to budget and save up for a home, which often leads people to stick with rent that’s easier to afford while keeping up with the cost of living—but putting in the work can pay off tenfold if you apply the cost of rent toward a tangible asset that you eventually own over time.

Are you financially responsible?

When you buy a home, the hard work doesn’t end once you get the keys in your hand. There are a lot of ongoing costs that you’ll need to keep up with, such as property taxes and maintenance repairs. And, whereas a renter could simply call up the property manager to fix a leaking sink, that responsibility will fall on you to repair yourself—unless you prefer to pay someone to do it for you.

Bottom line: If you don’t want to deal with the hassle of property maintenance and the ongoing costs of homeownership, it might be better to rent so you know exactly how much money to budget every month.

Do you have competing goals?

Finally, check in with your financial goals to see if there are competing priorities. Let’s say you just graduated from college; would you rather pay off your student loans or invest in the real estate market? Do you need a down payment to purchase a new vehicle?

Bottom line: It can be challenging to pay off debt or save money when owning a home, so consider your financial goals and decide what to accomplish first.

By keeping these thoughts in mind as you compare renting vs buying, you’ll be more likely to make the right decision for your financial future.

Samantha Rupp

Samantha Rupp holds a Bachelor of Science in Business Administration and is the managing editor for 365businesstips.com. She lives in San Diego, California and enjoys spending time on the beach, reading up on current industry trends, and traveling.

Who Likes To Rent

The letting industry is booming. The average rent across the UK rose by 2.5% in September 2019 when compared to the same month a year previously. If you’re comparing letting agent fees, landlords are also seeing favourable prices due to the influx of online letting agent offerings.

Increasing average rent and lower letting agent fees are however being offset with tax break cuts & tenant fee bans. So, while there are ever changing variables being faced by landlords, renters are pushing forward unfazed.

It’s clear that in the long term, buying your own property/investing in a buy to let will put you in a better position financially. Aside from those that can’t afford the infamous property deposit, there are those that actually choose to rent.

In this article we look at some of the people that choose to be renters, as opposed to renting due to limited financial options.

The Bachelor

Picture the young, career driven and smart individual (male or female!), enjoying life and exploring where they want to end up in the future.

Rather than buying a long-term property, say a 3 bedroom in the outskirts of London, they may decide they want to rent a modern apartment close to the city.

Now these types of property can be valued in the £1,000,000’s! While the bachelor may not have the financial backing at this stage, their lifestyle may not yet suit a property that’s further out away from the city nightlife.

Schools

Parents consider nearby schools as a high priority when deciding where to live.

The best schools are in the most prominent areas, where the houses come at a premium. In addition, parents already located in the region are unlikely to move, lowering supply of houses in that particular area and therefore adding to the price premium.

Parents are willing to pay premium rents in these areas. The extra rental cost can be judged as offsetting costs that would have occurred in putting their child(ren) into a costly private school.

The Renting Landlord

Commonly, a landlord has a property that for various reasons, they don’t want to live in. It could be too close to parents, too far from work or not big enough.

When not wanting to sell, an option is to let out the property, while renting in a property more suitable to themselves.

This allows them to live in a suitable property, while still reaping the rewards of rental income.

Vitally, if you’re one of these individuals looking for a letting agent for your property, you can use Rentround when comparing letting agent fees & performance to get yourself the best deal.

The Divorcee

Sadly, divorce is a part of life.

During or straight after a divorce, the former husband or wife will have a period of instability in their lives. They may be using the opportunity to think about moving to the city or looking to stay near what used to be their family home to stay in close proximity to their children.

During this period, a rental property would be suitable vs. committing to buying a property.

The Contractor

Rather than being a permanent employee with a regular job, the contractor is set up under a private limited company. The person may move from company to company when their contract expires. The benefit of this type of working is high day rates and pre IR35, lower tax vs. a permanent employee.

As a new contract is taken on, the location may vary drastically compared to the contractor’s previous location.

Therefore, renting makes sense in this situation, in comparison to constantly buying & selling or living in hotels.

“I’ll get married soon”

Some people are in long term relationships or single and have their fingers crossed of finding someone soon with the aim to get married. With this mindset and possibility, buying a property as a married couple makes sense.

A couple is likely to have a larger deposit and making it a joint decision on which property to buy, makes the moving in transition easier.

The Speculator

These savvy individuals may be predicting a future down turn in the market. So instead of buying while the price is high, they decide to pay rent up until a potential crash hits prices. The individual can then buy a property at a better price, increasing their profit substantially.

In addition, after a crash it’s common to see interest rates cut and tax subsidies from the government, to re-stimulate the economy as per the 2008 crash fallout. This adds to the benefit of buying after a crash.

However, predicting a crash isn’t easy. If you get it wrong, you could see yourself on the wrong side of property price increases.

All in all, there are many reasons why people prefer to rent as opposed to buying a property. Financially, yes the favour is usually in buying a property. However, for personal, family & work-related reasons, renting provides the flexibility that is often required in people lifestyles.

About the author: Raj Dosanjh is the founder of letting agent comparison site Rentround. Wearing many hats, Raj also runs a consultancy in the banking industry and his own martial arts club.

Can you be a landlord? How to generate rental income

Have you recently bought an investment property? Or are you downsizing and debating what to do with your family home now that it is no longer needed as your family has dispersed? Many people in this situation employ the services of a management company who will prepare the property, advertise it, vet perspective renters, collect rent and take are of repairs. Of course they do this in exchange for a percentage of the rental income that the property generates. This can range from a set yearly nominal fee to a full months rent per calendar year or more.

If you want to get into this business yourself without a management company, it’s important to be savvy and smart.

First of all, get to know all the local laws that apply. If the property needs renovating or remodeling, make sure all the work is above board and that you get the appropriate certificates to show that you are following regulations on everything to do with electrical, fire etc. This could save you some major headaches down the line. If you are changing the use of a property then even more paperwork and certification will be required.

When it comes to the type of renovations you do, also take a look at the neighbourhood to help you decide what should be done. You do not want your property to make the whole street look bad. But you also do not need to install gold-plated taps unless your property is in Beverly Hills. Stay in keeping with the area. If it’s not an essential upgrade and it won’t increase the amount of rent you can charge, think carefully before taking on extra expenses.

When it comes to setting the rent, you can take clues from looking at similar properties in the area. It’s important to get the rent at a level that is appropriate – reasonably affordable but not so cheap that people wonder what’s wrong with the place. Rent is your income. If the property is an apartment in an urban area, you might expect a higher turnover in tenants. With this in mind your forecasts should allow for occupancy for 10 full months per year only. In more rural settings, it can be more difficult to find a tenant but there should be less of a turnover. A good rule of thumb is to allow 12.5% of the annual rental income toward repairs and required upgrades.

Set up easy and clearly defined ways for your tenant to pay their rent.

Online is often simplest and gives you automatic records with your bank. Don’t allow arrears to build up. You are the landlord and have the right to demand the agreed rent. However, don’t be unreasonable. Communication is key in this situation and, whilst you may need the intervention of some legal entity, this should be a last resort that follows personal engagement. If your tenant goes into arrears and does not engage with you, check the law and begin eviction proceedings as soon as is legal whilst still attempting resolution.

Finding the right tenant is of course crucial to your rental income.

The first thing to do is market the property. Get some good photographs and write a comprehensive description for an online post. You might decide to arrange an afternoon of open house or set up individual showings with interested people. To make sure you’re not wasting your time, you can also put a short questionnaire online. Like this you will have essential information about them before setting up the viewing. Doing this initial stage by email and online is a big time-saver compared to doing it in person or on the phone.

In the US, you will of course check credit ratings of every perspective tenant. A score of 600 or below is considered bad. In Europe, we rely more heavily on references. Look for references from their previous landlord and employer. Get a copy of their legal ID and their national identity number. Meet them personally. Find out how many people they are planning on bringing to live with them. Have a proper legal rental contract for you both to sign, and give them a copy (free templates are available online for this). Have clear rules about smoking and pets, and put this in writing in the contract.

If you personally live nearby your rental property, it’s easier to keep an eye on it and make sure it’s being cared for appropriately. Of course you should not turn up unannounced or go snooping around when they aren’t home. You must respect their privacy. If you live further away, you might consider employing someone locally. If the property has a garden, having a local gardener to visit regularly will help to keep it looking well without relying on the tenant’s efforts. You will definitely need a local handyman you can call when repairs are required.

It is worth keeping the property in good condition.

In most countries expenses on repairs, cleaning and maintenance are all allowable as claims against your rental income to reduce the amount of tax you will have to pay on your income. So keep good records of these expenses. Your tenant will also appreciate living in a place that is well maintained and where they have a landlord who responds promptly to repair requests.

You can list your real estate on www.listproperty4free.com – start working on your rental income today.

Use our website to post real estate listings for free

No matter if you are a private seller or a real estate agent you are probably always happy to know another online platform to post real estate listings for free.

In this article, we like to show you quickly some of the features we offer when you list your real estate ad on www.listproperty4free.com.

Can I upload Images with my real estate ad?
Yes – you can upload up to 100 Images with your free ad.

Can I set the location of my real estate ad (Mapping Functionality)?
Yes, this is one of the main features of our website. You can set the location of your property. As a result it will show the location in your ad as well as showing your property on the map on our homepage.

Can I link to outside sites?
No. We currently do not support links to other websites. Rather, if you sign up as a real estate agent you kinda have your own page within our website. This will show like this:

www.listproperty4free.com/properties-by-agent/your-name

Am I required to create an account?
Yes. You will need to create an account to be able to post your real estate ad for free but there are no strings attached. Therefore, you can easily delete your account anytime you wish and all your data will be deleted.

Are there Special Promotion Options?
Yes, you can book extra features with your ad but this is not free of charge. Please see our pricing page for more details.

Can I post an international ad?
Yes, it does not matter where your property is located. It can be anywhere in the world.

What are you waiting for? Post real estate listings for free for thousands of new possible buyers or tenants on www.listproperty4free.com.

Property for rent in Europe and all over the World

We are happy to announce that now you are also able to list property for rent on our website.

Discover real estate for rent in Europe. You can do so easily by using our map feature to find the location that suits you best: Property for rent in Europe or wherever you want.

Why do we offer to list rental ads now?

Initially we focused just on for sale ads. We were interested especially to make it easier for possible buyers to find cheap properties for sale and to make the “hot spots” visible on the map. Users liked this very much; we can see that our section for properties below 20,000 EUR is still the best visited page from all sections we have available.

After a while some users started to list rental ads as well. As the rental price is usually below 20,000 EUR it started to mess up our cheap property for sale page. This got increasingly annoying for everybody who was looking to buy a bargain.

So, what to do?

After thinking back and forth we decided: Why not keep everybody happy? We keep the rental ads but give them their own space. So, that’s what we did. Now you are able to list or search rental ads as well. It might be still a bit edgy as originally our site was not designed for rental ads but we will see where it goes.

As a conclusion we can only say that we are happy that you like our website and use it. We know it is not perfect but we like to keep you happy and always appreciate your feedback.