Apartments for Rent
Apartments for Rent The government will soon come out with a house rental policy, which will allow migrants in cities to take a house on rent from government bodies for certain years and subsequently they can own them by paying the entire cost in easy installments.Apartments for Rent
This scheme known as “Rent to Own” will be one of the components of the ambitious National Urban Rental Housing Policy, which the housing ministry will anchor.
Union housing minister M Venkaiah Naidu on Thursday said the model Act will be placed before Cabinet for approval. Once the model Act is notified, states can adopt it. He added rental housing will be a key supplement to the Housing for All scheme of government, primarily aimed at meeting the requirement of ever growing migration to urban areas.Apartments for Rent
His ministry has already moved the Cabinet proposal, which aims at increasing supply of housing stock, putting in place enabling provisions to encourage property owners to rent out their houses. At present, property owners hesitate to rent out properties because of archaic rent control laws, which tilt in favour of tenants.
“The model Act proposes for repealing or amending the Rent Control laws. The new or amended law will be a leveller to protect the interest of tenants and property owners, which will be mutually agreeable,” said a ministry official. Due to archaic laws tenants are paying only a few hundred or thousand rupees for prime residential and commercial properties in cities such as Delhi, Mumbai and Kolkata.Apartments for Rent
According to 2011 census, 11.09 million houses were vacant in urban areas and at least 27% urban people live in rental accommodation.
“A handful of schemes have been proposed to meet the requirement of different types of migrants and depending on their financial capability. The Rent to Own scheme will be fit for people, who shift to cities for a good job and want to own a house, but can’t pay upfront or get loan,” said a source.
There will be specific schemes for migrants and homeless, who need affordable accommodation, and similarly for working women and students. There is also a proposal to convert slums on government land to rental housing where the municipal body will give 10 years “no eviction guarantee” to the tenants and charge rental.
To encourage people to build houses for rental housing, the policy proposes fiscal and non-fiscal incentives such as rebate in property tax and treating properties used as hostels as residential properties for calculating tax and other utility charges such as for electricity and water.Apartments for Rent
You’ve just bought the home of your dreams, signed the contract and packed the moving van — you’re all set, right? Not if you haven’t sold your current home first. So you put it on the market and you wait. And wait. And wait. In many cities where it makes more financial sense to rent than own, buyers may simply not be interested. In others, buyers do come along, but they don’t have enough money saved for a down payment or their credit isn’t good enough. How will you ever sell this house?
For many, the rent-to-own home may be the best option. Also called a lease-to-own house, the process works similarly to a car lease: Renters pay a certain amount each month to live in the house, and at the end of a set period — generally within three years — they have the option to buy the house. Each month of rent they pay is income for the seller, while a portion of it goes toward a down payment to eventually buy the home.
Rent to own deals look and feel a lot like standard home sales, and they are an alternative to traditional home loans. Both buyers and sellers can benefit from these arrangements, but it’s essential that everybody knows what the risks are before getting started.
This page deals with rent to own transactions involving a home, but there are other types of programs out there.
What Is Rent to Own?
Rent to own is a way to buy or sell something over time, giving the buyer an “option” to purchase at some point in the future.
With a traditional purchase and sale, the buyer and seller complete the purchase more or less immediately after agreeing to terms (at closing), but rent to own is different.
Under a rent to own agreement, the buyer and seller agree to the possibility of a sale at some point in the future. Ultimately, the renter/buyer decides if the transaction will actually take place. In the meantime, the buyer makes payments to the seller, and a portion of those payments (usually) reduce the money needed to buy the house at a later date.