renting Archives - Marina Grande
Request Pricing & Availability

What You Need to Know About Rent to Own Condos

Why People Choose the Rent-to-Own Option

The two most common reasons that people choose the rent-to-own option are:

  1. They have poor credit
  2. They don’t have the finances for a mortgage now, but will likely have it in the near future.

It’s important to remember that usually you have to be able to qualify for a traditional mortgage within a few years of moving in. If you don’t have the ability to put down the mortgage, you may lose all of the extra money you’ve been putting in.

How do Rent-to-Own Condo Arrangements Work?

All of the rent-to-own condo agreements are going to be different, each state will have its own requirements and regulations. However, a typical rental-purchase agreement will involve the renter/buyer having the option to purchase the property after a set period of time. This time period is, on average, 3 to 4 years. This will be achieved by an option payment, which is typically a one-time payment to the seller offering the buyer the option to purchase the condo at the end of the period. On average the option price is typically 3% of the total purchase price. Usually the option price will be 2.5% to 7%, which is substantially less than the 20% down payment of most mortgages.

How do Rental Payments Work for Rent-to-Own Condos?

The renter/buyer agrees to pay the full amount of rent during the lease, but a percentage of the rent will be applied towards the purchase price. This percentage, which is on average 25% of the rent, will become the rent credit.

When are Rent-to-Own Condos a Good Idea?

Rent-to-own condos are a great option for those who are recovering from bad credit or for those who aren’t ready to make the down payment on a mortgage. Rental-purchase agreements give the potential homeowners a chance to build up a good credit history and some additional time to save money.

Request Pricing & Availability

Renting vs. Buying Condominiums: What to Consider

Renting vs. Buying a Condominium

There are many factors to consider when it comes to renting or buying a condo. Finances are a major aspect to factor in, but thats only one piece of the puzzle. Consider these pros and cons if you’re struggling with the decision to rent or buy.

1. Calculate the Price-to-Rent Ratio

If you want to know the price-to-rent ratio, find a condo in your area for sale and a condo for rent. Be sure that they have similar features, such as the same number of bedrooms and comparable square footage.

As an example, lets say you find a condo selling for $200,000, and down the block you find a similar condo renting for $1,000 per month (or $12,000 per year.) Dividing $200,000 by $12,000 will give you a price-to-rent ratio of 16.7. If the ratio is higher than 20, the monthly costs of condo ownership will exceed the cost of renting a similar condo.

2. Determine Your Household Budget

An important financial aspect to consider when deciding to rent or buy your next condo is your income. If the purchase prices of the condos in your area are exceeding what you make in three years, then consider renting. If you’re intent on buying, then consider looking at other neighborhoods or locations.

3. Identify Your Needs

If you purchase a condo, being able to change the layout is an available option. But if you rent, you’re basically stuck with what you get. Owning a condo gives you the freedom to make more invasive changes to the interior. You can remodel more easily and expand where you need to. Most tenants who are renting or leasing, won’t be able to make any significant changes.

4. How Long Do You Plan to Stay?

Another major aspect to contemplate is how long you plan on staying in the area. Renting a condo gives you a lot more flexibility to relocate if needed. Some things to consider are if you’re planning on starting with a new job or starting a family. Buying a condo, you may be stuck with the purchase until the 30-year load is paid off or you can find a buyer.

5. The Responsibility of Maintenance

One major upside to renting is that if anything goes wrong, like the electricity malfunctioning or toilet backing up, you can call the condo association to come fix the problem. As a condo owner, you’ll be responsible for any mishaps.

Request Pricing & Availability

Renting vs Buying: Weighing the Options

Real Estate is one of the oldest trades. As long as we have civilization, we will have property businesses and real estate commerce. A common debate is whether buying and owning property, or renting, is more cost effective. Often, people will repeat the casual conversations that they overhear real estate agents talking about, but never crunch numbers to find out the real answer for themselves.


There are five accepted methods to purchasing a home: 20% down/30 year fixed, 15 year fixed, FHA loan, private loan, or cash. Considering these paths to take, they all have one thing in common: a static interest rate. This means that the deal you get is the one that will stay with you until you fully own the house. That is especially valuable when you contrast steady mortgage rates with fluctuating, usually rising, rent costs. The National Rent Report declares that from October 2015 thru October 2016, rent prices have increased 2%. This may sound like a modest number, but that is just for one calendar year. It really starts to add up when you think about living in a place for more than one or two years.

The reason houses are often considered an investment is because, simply, they are. Despite the recent housing bubble, the real estate market is surprisingly stable. Real estate prices mimic inflation rates. Moderate inflation will always be present, it is the normal cycle of a healthy economy. This means that your home, provided it is upkept and maintained, will undoubtedly increase in value as well, but that is just the beginning. Since construction costs continually increase and the local population rises, real estate in any form will simply become more elusive and valuable as time goes on.

What about retirement? Judiciously investing in real estate can offer a reliable safety net as you approach your retirement years. Your property will remain until you choose to sell it; at which point it will probably have appreciated in value. This will do one of two things: allow you to downsize and pocket the surplus cash you just made, or, provide a rent-free home which drastically reduces retirement costs. It is simple; owning property will deliver a feasible retirement.



The glaring disadvantage of renting is that you will never see that money ever again. Every monthly check is gone with the wind. It may seem more alluring for renters to cut a small, or sometimes big, check every month and not have to worry about loans or interest, but unfortunately, it is not fiscally advantageous.

Renting does not generate equity. For every mortgage payment you make, that amount is returned by building home equity. When you sell your home, that equity is what leads a profit; remember, real estate appreciates, or goes up, in value. You have to make a monthly payment whether you rent or sell, why not have that go back into your own pockets instead of a landlord’s?
When purchasing a home, mortgage payments are authorized to be considered tax-deductible. If you are making a respectable payment, writing them off as tax deductions can save you an astonishing amount, since your taxable income is now less than it was. Similarly, home improvement projects or renovations can warrant tax benefits as well. However, renting does not allow you to do this.

The biggest deterrent to committing to buying a home is the down payment. Yes, the down payment is a big chunk of money and it can be difficult to muster, but it is absolutely worth it in the long run. Here is a sample calculation of real renting vs owning costs, with a home price of $250,000 versus a monthly rent of $1,880 in Austin, Texas. After just three years, the buying option becomes noticeably cheaper. After ten years, you will have saved $120,000, and after thirty years, you will have saved $700,000. This effect is magnified in metropolitan or areas with high tourism.


Buying a home is considered an investment. Predicting your financial future is impossible, and the market is levied on many uncontrollable factors. It is tough to foretell what the future holds, but the numbers tell us a clear message. That message is, if you plan on sticking around for more than two-to-three years, then the monetary advantage is huge. If investing in an ever-increasing home asset is desirable for you, explore what we have to offer at Marina Grande on the Halifax.