Thinking of purchasing a home to join the 52 percent of Americans looking to buy a home in the next five years? Still deciding if you want to keep renting or buy? You can mix the advantages of buying and renting with a rent to own home.

Are you thinking of going for a rent to own home for your next move? Read on to learn about the many benefits of rent to own homes.

1. No Taxes and Less Liability

Since you don’t own the home, you will not have to pay property taxes. You will have time to see all the costs of the home before deciding to purchase. This gives you time to save money before you purchase the home.

You can “practice” paying for these costs by putting the money back in savings. You can then decide if you can afford this home. There will be no hidden expenses after you have your trial run.

2. Minimal Maintenance

If there are any large maintenance costs, the seller is responsible to pay for these costs because you are a renter. You will have to look at your contract. You may be responsible for smaller maintenance costs, and the seller is responsible to fix things over a certain dollar amount depending on your agreement.

You will still be able to make any improvements you would like to the home, which you wouldn’t be able to do in a rental. You have control of the home but without any of the large maintenance liability.

3. Test Drive Before You Buy

One of the biggest advantages of rent to own is that you can decide if you really want to purchase this home. It’s like test driving a car before you buy. With normal home purchases, you can’t try out the house by living in it before you buy.

You may find issues that would deter you from buying this home, or you may decide this is the perfect home for you and have less buyer’s remorse. Since you will live there, you can see what your neighbors are like and the exact costs of the home before buying.

4. Build Equity

Your rent payments help you build equity in your home. Every month, part of your rent payment will go toward your purchase price, so you are making an investment. Depending on how long your agreement is for, you may build additional equity if the home value increases while you are renting.

You can also make improvements to the home while you are living there. This could build instant equity if it is the right renovation.

5. Lock in the Price

This is another big advantage of rent to own. As mentioned above, you can build equity in your home faster. If you don’t purchase right away, you have locked in the purchase price of the home.

If the value of the home goes up, you still will pay the agreed purchase price, meaning you have built equity. The purchase price may be less than the home is worth. You also have the option to back out of the home purchase if the value drops.

6. Less Out of Pocket Up Front

When you buy a home, you need to make a downpayment of at least 3.5 percent along with closing costs. When you decide on a rent to own home, you pay only the security deposit plus the option deposit. This is more than likely less than a down payment and closing costs.

The seller determines the non-refundable option payment amount. This would give you more stake in the home in the seller’s eyes. If you don’t purchase this home, you will be out this money, but you can consider this money a “peace of mind” fee so you are sure of your purchase.

7. Flexibility for Purchase

The restrictions of this option are up to the seller. This could be a big advantage if you don’t have the best credit. When you make your rent payments, you are building credit with the seller.

The seller can justify your credit with these payments to justify the purchase and transfer the deed. This can help you build your credit score.

8. Move Less

You can also save money by moving less. You can get established in your home and not have to move in a few years. You will also be able to move in sooner with a rent to own home since you won’t have to worry about the closing process, home inspections, and getting various documents signed.

No one likes the inconvenience of moving, so this helps you decide if you like the house. If you do want to purchase, you are already in your new home.

Interested in a Rent to Own Home?

You can start searching for rent to own homes today. Sign up for a regular email update for new listings.

Rent to own is the way to buy something over time, allowing you to fulfill your dreams of homeownership. You and the seller will agree that you may possibly buy this home in the future. You have time to decide if you want to make this purchase.

Remember you will need to make your payments on time, or you could void this agreement. A portion of this money will go toward the purchase down the road. You will already agree to the purchase price before you begin renting, but you do not have to purchase.

As you can see, there are many benefits of the rent to own option, especially if you are unsure or you need to improve your credit. You may pay a little more than if you were renting, but you will know that this money is going toward the purchase of your new home.

Want More Home Advice?

Whether you decide to rent to own, purchase, or rent a home, check out our blog for advice. Owning a home should be fun. Check out articles like easy home upgrades on a budget.

You can also find other ways to save money as a homeowner. Be sure to check back regularly for updated tips and advice.