If a genie will appear to us right now and grant us one wish, most of us will disclose our dream to own a house beside the beach or perched on a mountainside with a full view of the city lights on the evening. With today’s burgeoning real estate market, we do not have to wait for a genie to appear and swish his magic wand for our wishes to come true. There are now many flexible means to property acquisition, without us having to sweat it all out.
Cold cash. Cold cash does not mean bundles of bills handed from the buyer to the developer. It means that the buyer has the ability to pay the property’s price tag, which might run to more than six figures. Variations of this type of payment exist. For example, a down payment can be made with the remaining sum paid on a specified time in the future. Or, payments will be divided to three equal parts until the price will be reached. Negotiations of this type of deals therefore are very crucial.
Bank loans. Banks are also helpful in a way. By offering you a housing loan, you can pay the property like cold cash but the ownership of the house does not belong to you. The entitlements can only be acquired once you are through paying the loan, which would mean that you have pay a certain amount of money via installment scheme in a regular basis. The expiration of the payment would be until you have fully paid the loan. However, you will be made to pay interest and other such charges, depending on the amount of loan and the bank where the contract was entered.
A variation of this type would be occupying the property without ever going through a bank loan for payment. The developer can offer installment schemes for you, which would mean that the title of the property belongs to the developer and will be transferred until you have paid the price in full plus other charges and interest. This means to say that the developer works double time as a financial institution and as a real estate company.
Rent to own. Rent to own houses work similarly like a house acquired through a loan and a house occupied through renting. The difference lies in that while paying, you are only paying the rent of the house but not the property itself. Depending on the agreement of the landlord or the developer, after a period of time you can opt to buy the house. The advantage lies in the fact that the regular payments are slightly lower than paying installment for bank loans.
This works for people who are saving money to purchase the real estate while occupying the property for the time being. This is also useful for people who want to have their credit history being upgraded. By showing to credit agencies that they have a property they are planning to buy out, their credit ranking will be rated much higher.