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What does it mean to rent to own a house?
Rent-to-own is when a tenant signs a rental agreement or lease that has an option to buy the house or condo later ?usually within three years. The renter monthly payments will include rent payments and additional payments that will go towards a down payment for purchasing the home.
Who pays property taxes in rent to own?
So, what creates all the curiosity about who pays property taxes in rent to own? Technically, the seller is still the owner of the home. And because of that technicality, the seller pays the property taxes until you have officially purchased the home. Until you close on the property the property still belongs to the seller.
Is it more expensive to rent or own a home?
The overall cost of homeownership tends to be higher than the overall cost of renting. That is true even if the monthly mortgage payment is similar to (or lower than) the monthly rent. Here are some expenses you檒l be spending money on as a homeowner that you generally do not have to pay as a renter:
Do you have to pay bills when getting your own home?
You will have to pay bills when getting your own home. Owning a home allows you to build net worth and, unlike renting, your monthly payments don’t disappear into the ether. However, there’s no landlord to fix things or to pay for repairs to a home you own.