Exclusive Right to Purchase
Once you are renting from Home Partners of America, you have the right to purchase the home within the next five years. Additionally, while your lease is being renewed each year, you have the right to renew it for five years. You are also guaranteed that your rent will increase by no more than 3.75%. If your rent was $1,000 a month for example, your rent would only increase for the following year would be $37.50/monthly. When compared to the annual rate of rent increase in Orlando which is at 4.5% currently, it is still under market appreciation.
The end goal of course is for you to purchase the home as your own, which is why the exclusive right to purchase is so important in this program. Each year the Purchase Right Price increases by 5%. For example if your purchase price for the home is 250,000, the Purchase Right Price would be the following:
- Year 1 - $259,375
- Year 2 - $269,101
- Year 3 - $279,192
- Year 4 - $289,661
- Year 5 - $300,523
Although 5% may seem like a large increase to some, if you factor in the increase of the Orlando region at 10% over 2015. There are additional costs incurred as well such as transfer taxes, closing costs, attorney fees, and tittle insurance, so the total cost to purchase will vary. Also, past market performance does not guarantee future market performance.