Australians are facing a rental crisis right now due to widely increasing rent prices. In turn, most families are having a hard time of owning their dream house. They're finding it hard to save money because 1/3 of their income goes to rental payments. But if families try out the rent to buy option, acquiring their dream house is not a big dilemma at all.
To, help you see how this options works, here's an example.
It's been 4 months now and person A's property has not yet been sold. So, he decreased the price from $525,000 to $450,000. Still, it was not yet sold. But it has to since he really needs the money to pay bills, mortgages, taxes and so many other financial obligations.
So, here comes person B acting as the property innovator who helps others first before he can really help himself. Person B tells the seller that he'll give $450,000. However, he can't give it upfront. So, he asks to rent it for a little while and will just pay the amount at a later date.
At first, person A doesn't approve of it. He says the rent is only $300 weekly and he needs about $450 weekly to pay his mortgage, taxes, bills and others. So, person B, in the hope of getting what he wants - gives in to $450 a week. Person A agreed. Person B pays $450 weekly and will give a cheque worth $450,000 when he is ready.
Person B calls person C, an agent, to rent the place at $500 weekly. The agent is hesitant since the real estate in that place is only $300 weekly. Person B tells the agent that the money goes toward buying the house. The next day, person C, got 3 tenant buyers. Finally, they agreed to give the house to someone with $9,000 to put up for the house.
So, everybody's happy, right?
Seller got what he wanted. There was no need for the tenant buyer to qualify for a bank loan as well as to provide a high deposit. Plus, he gets to own a home. The property innovator solved the problems of both the seller and the buyer. Then he got what he wanted for helping out. He received $9,000 upfront, $200 monthly cash flow and $41,000 as a back end profit.
Author Resource:
Did you know you can buy property without a bank? See PROOF RickOtton.com
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