Expert advice on rent to own-home process

Are you dreaming of becoming a homeowner but not quite ready to take the plunge? A rent to own-home could be the perfect solution for you. Joanne Amendola, an experienced real estate broker, will guide you through the process and provide expert advice to help you find the rent to own-home that perfectly meets your needs and budget.

What is a rent to own agreement?

A rent to own agreement, also known as a "rent to own-home offer," is a contract for renting a property with the option to purchase. During the lease term, you have the opportunity to become the owner of the home by exercising the purchase option. A portion of the rent is then deducted from the final sale price.

This arrangement offers several advantages:

• It allows you to become a homeowner gradually, without having to immediately invest a significant down payment.

• It offers the opportunity to "test" the home before buying it and ensure it meets your expectations.

• It gives you time to save for a down payment and secure financing.

How to find a rent to own-home?

To find a rent to own-home, it is recommended to work with a real estate professional. Joanne Amendola, a RE/MAX real estate broker, has extensive experience in this area and will guide you throughout your search.

She will discuss your project and search criteria (location, budget, property type, etc.) with you to offer a selection of rent to own-homes that meet your expectations. She will then accompany you in visiting the properties, negotiating with the owner, and signing the rent-to-own contract.

Key points of a rent to own-home offer

When considering a rent to own-home offer, it is important to pay attention to several points:

The final sale price: it must be set at the time of signing the contract and cannot be modified later. Make sure it aligns with the market price.

• The rent amount: it should be sufficient to cover the payments of a conventional mortgage but not so high that it strains your budget.

• The contract term: it is generally between 1 and 5 years. The longer it is, the more time you have to save for a down payment, but be careful not to commit to an excessively long period.

• The conditions for exercising the option: they must be clearly defined in the contract. In particular, check if you have the possibility to decline the purchase at the end of the contract.

Tax benefits of rent to own-homes

Rent to own agreements also offer interesting tax advantages:

• During the rental phase, you may be eligible for housing assistance if you meet the income requirements.

• Notary fees are reduced because they only apply to the amount of the purchase option, not the total price of the property.

• You can benefit from the favorable capital gains tax regime if you resell the property more than 5 years after exercising the purchase option.

• It is important to be accompanied by a professional to fully understand these benefits and optimize your transaction.

Lease-purchase, a variant of rent to own-homes

Lease-purchase is an arrangement similar to rent to own but with some specific features:

• It can only be done on new or refurbished homes.

• The contract is divided into two periods: a rental phase during which you pay a fee consisting of a rental portion and a purchase portion, followed by an acquisition phase where you become the owner.

• If the option is not exercised, the purchase portion is returned to you, minus a 1% indemnity of the sale price.

• Lease-purchase can be a good alternative to a classic rent to own agreement, especially for first-time buyers who want to secure their purchase.

Find your rent to own-home with Joanne Amendola

Rent to own is an attractive solution to become a homeowner gradually without having to go into debt for too long. By working with an experienced professional like Joanne Amendola, you maximize your chances of finding the rent to own-home that suits you and realizing your project with peace of mind.

Don't hesitate to contact Joanne Amendola today to benefit from her expert advice and start the process towards your future home!