Posts Tagged by rent to buy

Potential Homeowners Faced With Larger Down Payments

February 17, 2011

Posted by Sandie under News, Real Estate, Rent2Buy Concept

No Comments

Just three years ago, the median down payment for conventional mortgages in 9 major U.S. cities was at 11%. Last year, this number rose to 22%. The stiff increase in the amount of money banks require for a down payment will have a marked impact on the housing market and will undoubtedly change the behavior of those seeking homeownership.

An increase in the required down payment means some individuals who intended to purchase a home are no longer financially able to do so. This shrinks the portion of the population looking to buy a home, and thereby negatively impacts the housing market.

“There’s no question that the tightening of criteria unquestionably prices households out of the market,” says Zillow Stan Humphries, economist at Zillow.com. “The middle ground buyer is the one having to fight to get a conventional mortgage.”

The Obama administration has proposed that the minimum put down for a conventional loan be gradually increased to 10%. Private lenders are also becoming more risk averse, increasing the amount required for a down payment.

What effect will the increasing down payment requirements and the elevated cost of borrowing have on the future of the housing market?

One significant outcome will be the continuing decline of house prices. Another effect will be to push individuals seeking homeownership to consider less traditional means of financing.

The rent to buy or rent to own option will become a viable alternative for those individuals who are no longer able to afford the down payment banks and private lenders require. People with their hearts set on homeownership will most likely keep renting and trying to save up enough money to shell out for a down payment in the future. However, the act of paying rent and the intention of saving money are two conflicting financial situations.

Instead of just renting a property and trying to save money, those looking to achieve the “American Dream” of homeownership should consider renting a place with the option to buy it.

Read the full article in the Wall Street Journal.

Stricter FHA Financing Rules Signal Need for Creative Modes of Financing

February 9, 2011

Posted by Sandie under All Things Rent To Buy, Real Estate, Rent2Buy Concept

1 Comment

The Federal Housing Administration has changed their condo financing rules, squeezing sellers and creating significant new challenges for the resale of some real estate projects.

According to Orest Tomaselli, CEO of White Plains, NY-based National Condo Advisors LLC, “There were 26,000 condominium developments that would have had to have been recertified by Dec. 7, 2010, and, in fact, my office sent out letters to almost every single one of these developments across the country telling them they were going to lose their approval. Most of them didn’t even know.”

While FHA-approval typically involves a substantial amount of paperwork, the benefit is easier access to FHA financing. Condominium purchasers did not necessarily need to rely on FHA funding in the past, because up until 2007, private lenders were loaning them large sums of money. For those who did want FHA financing, there was something called a spot loan that allowed them to get FHA approval for the particular condominium slotted for purchase.

“In February 2010, the FHA ended the spot loan — replacing it was a process where every single condominium development had to have project approval, which was to be given by HUD (the U.S. Department of Housing and Urban Development), which administers the FHA, and lenders that were delegated FHA lenders,” said Tomaselli. Because of the economic downturn, the presence of private lenders in the market has drastically decreased and the need for other forms of financing has again become an important consideration for developments.

While condo developments used to be able to get approval once and then be set for life, the process has changed. Developments must now get reapproved every two years. The guidelines for approval are stricter than ever, and some developments are reconsidering their need for a partnership with the FHA. But there are drawbacks to relinquishing FHA-approval. Without FHA-approval, condos are seen as less desirable and are at a disadvantage in terms of marketing and value. This is a crucial concern considering the current state of the housing market.

So, what does this mean for you? “When those condo owners want to sell their units and no one can finance,” says Tomaselli, “when buyers can’t get a mortgage because the development is not FHA- or Fannie Mae-compliant, that’s when the pain will rise and everyone will start to scramble to become compliant.”

Rent to buy is an alternative that allows buyers to pay a monthly rental payment on a property and have a portion of that payment go towards the eventual purchase price. For sellers, offering potential homeowners the option to rent to buy the property means a property does not remain vacant, but rather makes money each month until it is purchased. It’s crucial to consider creative ways of financing given the housing market’s current state. Rent to buy is just one option that can benefit buyers and sellers alike in a time when finding a happy ending for either is almost unimaginable.

Read more, in this article from Inman News.

How to Open a Store on Rent2Buy in 5 Easy Steps

January 31, 2011

Posted by Sandie under All Things Rent To Buy, Rent2Buy Concept, Rent2Buy Website

No Comments

Opening a store on Rent2Buy is really easy. And best of all, it’s free. Our e-commerce platform was created with the vision of connecting buyers and sellers on one comprehensive online marketplace. Our goal is to provide businesses and consumers a space in which to transact in innovative ways.

What makes Rent2Buy unique and differentiates us from Craigslist and other such online marketplaces is that you can choose to list your items as for sale, for rent, or as rent to buy.

Your store will be a comprehensive online marketplace where you can list your entire inventory. You can delete or add items at any time. You can upload your logo, upload multiple pictures of your items, add descriptions, and give potential customers in-depth information about your items to a degree that you can’t on other online sales platforms. In just a few short minutes, you’ll have your very own online marketplace up and running!

How to Open a Store:
1. Go to: http://www.rent2buy.com/stores/stores.aspx
2. Sign-in using a Google, FB, Twitter (etc) account, or create an account on Rent2Buy.
3. Once logged in, click the ‘open store’ button at the top right-hand side of the page.
4. Click on the ‘open a free store today’ button.
5. Fill in information about your store, upload your items, and start selling!

In a few short minutes, your store will be open and ready for business!

CAM Rent-to-Buy Program Grows, Sees Success in Overseas Property Market

January 28, 2011

Posted by Sandie under Real Estate, Rent2Buy Concept

No Comments

In early October, we wrote about a new rent to buy program launched by Caja Mediterraneo (CAM), the fifth-largest financial institution in spain. The CAM bank has been selling repossessed properties to buyers from the UK, Russia, and the Benelux countries.

Alfredo Milla, international commercial director at CAM, said “the rent-to-buy product is fairly new and innovative from our point of view, and people like the idea of renting a villa or apartment in Spain from our books for two years before having to consider the option of buying the property.”

With the rent to buy program, potential buyers rent a property of their choice for two years and get a chance to experience firsthand what it’s like to live in the area. They can see what the schools are like, get a feel for the community, and make a calculated decision about whether or not they want to ultimately purchase the home.

According to Milla, CAM sold almost 4,800 properties in 2010, 480 of those properties going to international buyers. The majority of sales outside of Spain in 2010 were to buyers in the UK, while the second-largest group of properties sold to Russia.

What’s making the CAM rent-to-buy program so successful? According to Andy Lister Cope, head of business development, it’s the program’s comprehensive reach and CAM’s ability to offer excellent service to consumers, aiding them in every aspect of the transaction. “We give a full service” says Cope. “We sell, we do after-sales and we have all the infrastructure in place. We have the keys to every property ready for inspection, and we take selling these properties seriously.”

The real key to their success? Making sure consumers view the CAM Bank’s rent to buy program as a respected and legitimate way to achieve homeownership. Though some other Spanish institutions don’t have the best reputations at the moment, CAM takes seriously its role as a provider of quality housing and affordable solutions for individuals in the housing market. Says Cope: “If you get a client who wants to buy from us, we will have all the details ready to complete. All our properties are fully owned by CAM and registered in the name of the bank, all of the paperwork will be in place, and nothing will be offered for sale on illegal land.”

In the coming year you can expect to see CAM continuing to expand its sales of rent to buy properties both in Spain and abroad. CAM has entered into strategic partnerships with TUI and the Clydesdale and Yorkshire Bank. CAM has also entered into an exclusive overseas sales partnership with a UK agency called Connells.

Read the original article in the Overseas Property Professional.

More Affordable to Buy than Rent in 72% of 50 Largest American Cities

January 25, 2011

Posted by Sandie under All Things Rent To Buy, Real Estate

No Comments

Trulia’s quarterly Rent vs. Buy Index was released yesterday. We’ve written about the Trulia index in past blog posts where we outlined the best cities in which to rent and those where it is best to buy. The new figures are very similar to those from last quarter, with just a few notable differences.

According to last quarter’s Rent vs. Buy Index, the top five cities where buying is cheaper than renting were Arlington, Texas; Fresno, California; Miami and Mesa and Phoenix, Arizona. In the most recent report, Las Vegas made the list and Fresno dropped from the top five. The top 10 cities to rent vs. buy are New York, Seattle, Kansas City, San Fransisco, Memphis, Los Angeles, Fort Worth, Oakland, Portland and Albuquerque.

Regardless of which cities made the top 10 list of where either renting or buying is a more financially sound option, some crucial insights can be derived from the Trulia index. Major discrepancies exist between the results of the survey and the behavior of real Americans.

Despite the fact that it is more affordable to buy a two-bedroom home than rent it in 72 percent of the US’s 50 largest cities, there has been a movement towards renting as more and more Americans shy away from homeownership. This trend is especially interesting because for only four of the ten cities in this data set is renting actually less expensive than buying.

Though people may be doing their research about whether renting or buying is better in their particular city, there are clearly many Americans who are making decisions about homeownership that are not in line with what has been shown to be in their best interest. The fact that many Americans still choose to rent when buying is more affordable is an indication that there must be other factors affecting the choice to rent vs. buy.

The discrepancy between actual decisions to rent and buy and the data informing these decisions suggests a need for increased understanding of what other factors may be behind the choices people are making. It’s possible that many renters choose to do so because they cannot afford to make a down payment on a house.

By expanding the options for potential homeowners from strictly rent vs. buy to other transaction types like rent to buy, there will be an opportunity for more homeowners to make fiscally responsible decisions without having to limit themselves due to temporary financial constraints. Rent2Buy.com offers users the option to rent, buy, OR rent to buy properties, with the goal of helping each user find the best possible transaction type to fit their financial situation and meet their individual needs.

Any thoughts on why there has been a move towards renting despite the fact that buying is more affordable in the majority of the US’s big cities? How can we make sure Americans are making the best possible decision about renting vs. buying for their particular circumstances?

Rent or Rent To Own Energy-Efficient Homes in Chicago

January 19, 2011

Posted by Sandie under Real Estate

No Comments

Despite difficult economic times, people are still pushing for progress and looking towards the future. A lot of focus in recent years has been generated within the field of energy conservation, with governments and businesses pushing for energy efficiency in various aspects of their operations. A push for energy efficient housing is among those reforms being encouraged.

A recent article on the Chicago Citizen Newspapers site discusses the development of new homes for rent and homes for sale in the Roseland, Chicago area. The real estate development offshoot of Neighborhood Housing Services of Chicago, NHS Redevelopment Corporation, is helping homebuyers to buy or rent to own the properties. What’s notable about these properties is the various energy efficient characteristics of the homes and amenities within them.

We think it’s commendable that an organization is working to provide not just energy efficient housing but also a variety of ways in which potential homebuyers can structure the transaction, be it a rental, a straightforward purchase, or a rent to own / rent to buy deal.

To read more about energy efficient homes for rent and homes for sale in Roseland, click here.

Accessorize Like a Diva With Rent To Buy Handbags: From Chanel, to Gucci, to Prada

January 18, 2011

Posted by Sandie under All Things Rent To Buy, Fashion, Rent2Buy Concept

No Comments

I’m sure by now we’ve got you thinking about the endless possibilities of the rent to buy market: Rent to buy homes, rent to buy skis, rent to buy autos. But what about the market for rent to buy goods in the fashion industry?

There are several websites that let you rent or lease bags with the option to buy them. You can find big-name bags from designers like Chanel, Coach, Tracy Reese, Gucci, Fendi, Louis Vuitton, Prada, and more for rent on the web.

Why rent to buy a handbag? Many people turn to this option because it is a financially sound way to rent or buy a bag they cannot afford to buy up-front. Buying a brand name bag is a big commitment, both when it comes to the high price you pay for the designer name and quality as well as the commitment you are making to owning that accessory for life. For those of us who aren’t ready to dish out the money required for a purchase of that size and seriousness right off the bat, choosing to rent or lease the handbag first is a great alternative.

Even if you have the money to spend on a high-priced bag and can afford to walk into a store right now and buy the most expensive one, why not take some time to weigh your options and try out a bag before you buy it? The option to rent for a little while, trying as many different bags you like for however long you desire, will allow you to make an informed decision about which bag is right for you. You can rent a super trendy bag for a while, and when a new one comes out that you like better you can trade in the one you have for the newer piece. You’ll never feel obligated to keep using a bag that you no longer like, just because you spent a ton of money to buy it originally.

There are several sites on the web catering to shoppers looking to try out designer handbags before they buy them. One such site is called Bag Borrow or Steal. On the site, you can rent handbags, jewelry, and other accessories for a week, a month, or for an entire season. If you decide you want to purchase an item while you’re renting it, you can go on the site and request to ‘steal it.’ If the item you are renting can be purchased, you will be shown the rental equity you’ve earned on that item. Even when you’re renting a bag, you won’t be losing money on it if you eventually decide to purchase it.

Some other sites that offer rent to buy handbags are Bag Borrow or Steal, From Bags to Riches and All That Bags.

Even Billionaires Rent2Buy: Mark Zuckerberg’s New Digs

January 17, 2011

Posted by Sandie under All Things Rent To Buy, Real Estate

No Comments

A lot of people were shocked when they discovered that the young CEO and co-founder of Facebook still rents. Mark Zuckerberg recently traded in his old month-to-moth rental property for a new home, another rental in the College Terrace neighborhood of Palo Alto, CA.

Unlike other big-shots in the tech industry, Zuckerberg doesn’t seem to have any grand plans for homeownership any time soon. Though his newest home is slightly larger than the previous, it isn’t the type of upgrade you expect from a 26-year old with almost 7 billion dollars to his name.

Though his new residence is 3,800 sq ft and has 5 bedrooms and 4 bathrooms, the most notable aspect of the home is its location. Zuckerberg can practically roll out of the bed in the morning because his new home is literally just steps away from Facebook’s headquarters.

We’re not sure of the specifics of his rental contract, but we’re wondering: Might Zuckerberg be renting with the option buy? Anything is for sale for the right amount of money. With a net worth upwards of 6 billion dollars, Zuckerberg probably has the option to buy just about whatever he wants.

What Makes Rent2Buy Real Estate Unique?

January 14, 2011

Posted by Nick Carbone under Real Estate, Rent2Buy Website

No Comments

How is Rent2Buy Real Estate different from other listing sites?

Have you ever seen a website that focuses not just on rental properties and homes for sale but taps into the market for rent-to-buy properties as well? I doubt it; Rent2Buy is the first of its kind. The idea behind rent to buy is totally organic. Whereas most listing sites show only homes exclusively for sale or for rent, Rent2Buy also focuses on the growing market for lease-to-purchase properties.

The primary benefit of Rent2Buy is simple: to get your properties moving. With the real estate market still bouncing back, you may be having trouble turning over properties. You can’t get the price you want for the home, so you’re waiting for an uptick in the housing market before you sell. But what if you could make money on the home now? By putting the property on the market as a lease-to-purchase, you are able to get a paying tenant in the house while still maintaining control of it. You have the power to set the terms of the lease, with the rental converting to a sale after a certain amount of time, if the tenant so desires. If not, you can relist the property and find a new renter or buyer.

Listing on the Rent2Buy site will increase your exposure. All home listings are easily accessible by the general public. We feature foreclosed and pre-foreclosed homes, along with MLS details for many regions, all searchable by anyone. And since more consumers are drawn to the site, it will spin more traffic and exposure to your properties and your agency, especially to your exclusive local territory for the agents who are a part of our agent network.

It could be free, as long as you provide us with one rent-to-buy property per month. You’re not paying for listings on our site like you do on most other listing sites. You can enter as many properties as you like.

What do you have to lose? Check out the Rent2Buy site and make Rent2Buy Real Estate work for you.

Pros and Cons of Buying a Rental Car

January 4, 2011

Posted by Sandie under All Things Rent To Buy, Autos, Rent2Buy Website

1 Comment

There are a lot of options available to those looking to buy a car. One of these options is to purchase a used rental car. Purchasing a car in this manner has both pros and cons that consumers should be aware of before they make a decision as to what type of vehicle to purchase. We’ve outlined some of the main pros and cons of buying a rental car below. It’s up to consumers to carefully weigh the advantages and disadvantages of purchasing this type of car and decide whether or not it’s an option they want to explore

Pros of Buying a Rental Car

Price: One of the most significant benefits of buying a used rental car is the price. Rental cars are usually for sale for a lower price than what you would find elsewhere for the same vehicle with comparable year and mileage.

Recent Model Year: Rental vehicles for sale are typically only a few years old, usually from one or two model years back. You’re guaranteed to find a relatively new car complete with the latest features and safety equipment.

Try It Before You Buy It: Some programs give you the option to try out a rental car before you buy it. This way, you can take some time to familiarize yourself with the vehicle and get an idea of whether or not it’s right for you. Instead of the typical 5-minute test-drive where you can barely make it around the block and back, many rental car companies allow you to try out the car for a few days before making your final decision.

Less Hassle: Because the rental company takes care of the tedious aspects of the transaction, including paperwork, title, and loans, you don’t have to worry about the logistics of the purchase yourself.

Warranty or Money-Back Period: Most companies offer a short-term warranty on the vehicle and/or a money-back period. This allows you to fix any problems that become immediately apparent and give you a little cushion in case you change your mind.

Well-Maintained: Rental car companies service their vehicles as recommended by the manufacturer. They always want a top-quality and well-functioning fleet in operation, meaning any car you purchase is sure to be taken care of when it comes to regular inspections and maintenance. You can rest easy knowing that any and all problems with the car while under the company’s purview were fixed immediately.

Cons of Buying a Rental Car

Limited Selection: When you’re picking out a rental car, your choice will be limited to the cars available in that rental company’s fleet. Though this is the case when searching for used vehicles in a specific rental company’s inventory, the Rent2Buy autos section will offer a kind of virtual auto mall, with comparative shopping so you can compare price and selection between various companies.

Basic Vehicles: The vehicles in a company’s fleet are typically very standard, without too many bells and whistles. If you are looking for specific features that do not come usually come with the standard package, you may need to do a little more searching within the company’s fleet or reconsider buying a rental car.

Car Was Driven: Many people believe rental cars are driven especially “hard,” with less care than if the car actually belonged to the person driving it. This may be true in some cases, but certainly does not apply to every vehicle. You will have to examine the car yourself and determine whether you can live with the wear and tear the vehicle has seen.

Relatively High Mileage: Depending on the year of the car and how much it was driven, rental cars may have relatively high mileage. This is not always the case, as each vehicle is different, but you may want to pay attention to vehicle mileage when conducting your search.

Less Warranty Coverage: The warranty on the vehicle you purchase will be different from company to company. Some certified pre-owned car dealers offer big warranties that you will not find when you purchase a rental car. This is something to consider when making your decision.

Now that we’ve addressed some of the pros and cons of buying a rental car, we want to know what you think. Does purchasing a rental car have to be a tradeoff between the benefits and drawbacks outlined above? Or can you find a rental car in good condition and with reasonable mileage at a good price?

Please share your stories and experiences if you have ever purchased a rental car or thought about exploring the option. Join us on facebook and share your thoughts.

Rent2Buy Blog

Posts Tagged by rent to buy

Potential Homeowners Faced With Larger Down Payments

Stricter FHA Financing Rules Signal Need for Creative Modes of Financing

How to Open a Store on Rent2Buy in 5 Easy Steps

CAM Rent-to-Buy Program Grows, Sees Success in Overseas Property Market

More Affordable to Buy than Rent in 72% of 50 Largest American Cities

Rent or Rent To Own Energy-Efficient Homes in Chicago

Accessorize Like a Diva With Rent To Buy Handbags: From Chanel, to Gucci, to Prada

Even Billionaires Rent2Buy: Mark Zuckerberg’s New Digs

What Makes Rent2Buy Real Estate Unique?

Pros and Cons of Buying a Rental Car

Recent Posts

Recent Posts

Recent Comments

Meta

Pages