fareed: Michigan Rental Properties in Ann Arbor: To Rent or Rent to Own?
Michigan Rental Properties in Ann Arbor: To Rent or Rent to Own?
If you're searching for rental properties in Detroit, Michigan, rental properties in Ann Arbor and other nearby areas, perhaps you are enthusiastic about a lease to possess agreement.
Ann Arbor, Michigan apartments vary greatly in price, with regards to the neighborhood. Lofts and condos closest to the university routinely have higher rents than similar properties farther out. If you have problematic credit or no down payment, you might think that renting is the only option, but with the economic situation in Michigan, many sellers are motivated to consider creative solutions which are beneficial to any or all parties.
In line with the Office of Federal Housing Enterprise Oversight Committee, average home prices increased by 7.7 percent nationwide in 2006. But, major exceptions were seen in the state of Michigan. In Ann Arbor, home prices decreased by on average 8.08 percent and in Detroit by 2 percent. While this is a tough situation for a seller to stay, it might be good for potential buyers.
Some experts describe the Midwest as "economically shell-shocked ".Auto industry layoffs, closing research facilities and pharmaceutical labs have put many homeowners in a situation where they "must sell quickly", sometimes in order to avoid foreclosure, sometimes because of the need to transfer. Some long-time Pfizer employees have been offered the choice of transferring to a facility in another state, after the facilities in Michigan close, a process which is on-going throughout 2007.
While these factors may not affect the average rent for Ann Arbor, Michigan apartments, it is likely you will see more homes readily available for rent. Quite simply, the amount of available Michigan rental properties, in Ann Arbor particularly, will probably increase. Property owners that would ordinarily sell their home may now be prone to offer it "for sale or lease ".So, you may be able to locate a home to purchase, with little or no money down, with or without good credit, if the vendor is ready to accept a "lease option agreement ".
In certain ways, a lease option agreement or "rent to own" agreement is similar to a standard rental agreement. The major difference is that by the end of the lease, the renter (you) have the option to get your home at a high price agreed upon at the start of the lease. Right now, with prices down, this could mean immediate equity. Also, a percentage of the rent every month goes toward the purchase price of the house. Thus giving the feel of true homeownership. (Or apartment or condo ownership).
This kind of agreement may appeal to you if you need time for you to establish or repair your credit rating. Or, if you need additional time and energy to come up with the down payment.
Lease option contracts vary, depending on which the property owner is willing to offer. Some owners may require a fairly substantial deposit. Others might be willing to just accept an inferior deposit, if you are willing to complete repairs and take care of the required upkeep on the house yourself. Repairs and the like are normally the landlord's responsibility, but with some lease option agreements, even the quantity of money that you spend on maintenance and repairs can be placed on the eventual purchase of the home.
Underneath line is that, because of the current economy, you will likely see a rise in the quantity and variety of Michigan rental properties. In Ann Arbor, it could be easier for you to start the method of owning your own home Ann Arbor apartments for rent. And, since home prices invariably "return back up", again, this could be the very best time for you yourself to buy a home, as opposed to winding up in another one of the Ann Arbor, Michigan apartments.
Property investors like us might help whether you are a seller looking to market your house on a rent to own basis, or even a buyer thinking about purchasing a rent to own apartment, condo, or home. We've the experience and team (mortgage broker, attorneys, paperwork, and connections) to make the deal happen and happen the right way.