RENT TO OWN PAYMENT PLAN

By Paul Adede

Rent-to-own is a rental purchase model that allows a prospective home buyer rent the house they intent to purchase for a certain period of time with the rental payments going towards clearing the house purchase price.

Superior Homes has set the maximum lease period to be 3 years. Rent to own was conceptualized to give potential home owners an opportunity to live in their houses as they pay for it over a period of time without taking up mortgage.

 Start Off

A rent-to-own agreement means the vendor has committed to sell their property to a tenant and the tenant has agreed to purchase the property for a pre-determined price within the 3 years’ time frame. This process starts by identifying the house of choice then doing a payment of a minimum of 50% of the purchase price before occupying the house.

 Monthly Installments

Upon payment of a minimum of 50% of the purchase price, the balance of the purchase price is broken down into equal monthly installments to be paid within a maximum of 36 months (3 years).

 Interest

Interest on the balance of the purchase price is restricted to 10% and charged on a reducing balance. This therefore means that the aforesaid balance of the purchase price that is structured into equal monthly rental payments incorporates the 10% interest.

 Completion

Ownership of the property will transfer to the Tenant Buyer following receipt of the final payment of the purchase price.

37 thoughts on “RENT TO OWN PAYMENT PLAN

  1. Francis says:

    This is interesting and would love more details as to how this works and what are the properties , you have and the said plan.

  2. CHRISTINE AWUOR says:

    I cannot call since its too expensive to call currently. Can you please send to me some houses and the payment plans.

Leave a Reply

Your email address will not be published. Required fields are marked *