If you’re in the military, a lot of complications may arise when you’re buying a home. It is an occupation that involves reassigning and changing residence from time to time. For that reason, military bases are ordinarily built in places with short-term housing options on the local real estate market.
Rather than making a long-term commitment, most people who serve in the armed forces choose to rent a home. Do you also pay rent? That’s fine, but what if you could invest in owning a house instead of spending money on rent. With rent-to-own homes, you can save thousands of dollars each year.
By choosing this option, your hard-earned money will not end up in someone else’s pockets. Knowing this will let you live a more comfortable military life and effectively save for the future of your family. You may wonder how it works, so let us break it down for you.
Is Rent to Own Worth It?
Many home buyers find rent to own a good solution. It is suitable for those having a change of duty station due to its flexibility. They don’t have to worry about selling their home if they must leave it for work purposes.
The majority of people grow attached to a community where they are stationed for several years. They make friends over time and wish to stay in that area after finishing their service.
Rent to own gives military members a chance to lock in their future property. Unlike conventional home-purchasing situations, there is no need to own a house in a place you don’t live anymore after being reassigned.
Perhaps you need to stay somewhere for a while. If so, you need to consider building equity in the house that you may want to buy after a few years. This is where RTO can be a good option.
A Step-by-Step Guide to Owning a Property through Rent to Own
It is not uncommon for the department of defense to help military families who are always on the move by providing reimbursement to them. This assistance can be seen in various ways. However, they often must find military off-base housing for rent or sale on their own.
That can be daunting. This step-by-step guide will walk you through the whole process of owning a rent-to-own home.
Step 1: Search For a Home
First things first, you need to search for a military house in the area where you’ll continue to live after your service. While realtors can help you choose a good location and find the home for sale that meets your needs, you should check For Sale by Owner (FSBO) websites yourself.
In addition to looking through online databases, it is also a good idea to look into the Comparative Market Analysis when searching for housing for sale near your military post.
Step 2: Negotiate the Contract
Aside from negotiating the purchase price with the seller, you also need to go through all the parts of your contract. You should negotiate everything from the timeframe for closing on a home to the option fee as well as property repairs and rent credits.
Make sure your rent-to-own agreement specifies what exactly you need to pay and when the payments should be done. That should be clarified before entering into a contract to avoid possible problems in the future.
Take into account the fair market value when setting the purchase price. Besides, try to keep your premiums and rent near your BAH (Basic Allowance for Housing). That will help you avoid paying the difference between payments and your BAH.
Step 3: Lease the House
You will want to know whether you like the neighborhood and the home or not. It’s recommended to meet the neighbors before starting to lease the home. Check if there are any home improvements required.
You may want to hire a home inspector or general contractor to scrutinize everything from top to bottom. A home inspection needs to cover all the major home systems, including the plumbing, drainage, roof, foundation, as well as heating and electrical systems.
That will help you get a clear picture of all the advantages and shortcomings of the home. Ultimately, you will be able to make an informed decision on whether to buy the house when your leasehold expires.
Step 4: Buy the Home
Once you’ve finished your service, you need to decide whether or not to purchase a home. There are two possible scenarios at the end of your lease.
If you will be transferred soon, then you should choose a rent-to-own home that will let you walk away from the property without any commitment. Moreover, this will save you the hassle of selling the home later on.
If you will be residing in the community near your duty station for many years, you should consider purchasing the property in that area. It can be a good future investment. Once your down payment is ready, you’ll be able to keep using your basic allowance for housing for mortgage payments.
Top 5 U.S. Military Bases & Rent to Own Homes
There is a huge number of military bases across the United States. Here are 5 large military bases with the best rent-to-own homes close by.
1. Fort Bragg
With about 14,000 civilians who work on the base and over 50,000 active military members, Fort Bragg is one of the largest military installations in the United States. It is built on the Fayetteville outskirts.
Stretching across more than 160,000 acres, it comprises several counties in North Carolina. There are a lot of golf courses, parks, and green spaces in this area, so residents can enjoy a variety of outdoor activities.
2. Fort Benning Army Base
Lying on the border of Alabama and Georgia, Fort Benning consists of over 120,000 military personnel. They enjoy various family activities within the base from bowling to archery and paintball. It is also home to 6 schools serving around 2,000 students annually. That makes it one of the best places to own a house for seniors and military families.
A lot of members of the armed forces benefit from commuting to work and lease to own in this area, especially in the nearby City of Columbus. It’s not uncommon for them to ultimately own the property here.
3. Fort Campbell
This military base is established on the border of Kentucky, Hopkinsville, and Clarksville in Tennessee. Fort Campbell covers roughly 105,000 acres and employs more than 200,000 people. Nashville is only a short drive away. While the base offers some rental properties, there are also rent-to-own homes close by.
4. Joint Base Lewis-McChord
Just south of Tacoma, this base is positioned in a place that offers a lot of amazing options for nature lovers and sports enthusiasts. Nevertheless, many military members can’t afford to buy a home here because of high housing prices.
Lucky for them, there are many rent-to-own homes in the vicinity of the base. These homes are perfect for military personnel planning to own their property.
5. Fort Hood
Fort Hood stretches across over 200,000 acres in Killeen, Texas. It consists of over twenty major units. Over 215,000 people are employed on the base. In addition to many restaurants and movie theaters, there are numerous schools and childcare centers near the base.
The low cost of housing is another benefit of living here. That’s why many Fort Hood members decide to buy a home in this area. Those who don’t have a permanent change of station should look for local rent-to-own deals.