The real estate market has become a challenging field in the last few years as the sales rate is not increasing significantly. Factors like rising house prices, unstable economy, and higher interest rates have restricted the activities of potential homeowners. Being stuck with external debt, you may not even qualify for a mortgage. And that is the reason for the growing popularity of the Condo in the area of Charan 13 [คอน โด แถว จ รั ญ 13, which is the term in Thai]. But the demand is higher for rent-to-own condos due to several reasons.
Common reasons
The most common reasons for maximum people to choose a rent-to-own condo include
- Inability to get the mortgage now, but the chance of getting so in the near future.
- Less-than-great credit score.
So if you are planning to sign a rent-to-own agreement, you should be confident about qualifying for the traditional mortgage within a few years of moving in. but if you don’t qualify, then you will lose all the extra money that you are investing for the rental and also the tremendous efforts.
How it works
No two rent-to-own agreements of the Condo in the area of Charan 13 are identical. Each state has its own rules and regulations that govern the rental-purchase agreement. You may get a tenure of 3 to 4 years on average to purchase the property according to the standard agreements.
- To accomplish this, you need to pay the one-time option payment to the seller after the end of the prescribed period.
- The price can be somewhere between 2.5% to 7% of the total buying price.
The amount will be significantly lower than the down payment for mortgages, which will be no less than 20% of buying price.