Rent to Own a Home in Sherwood Park, Alberta

Rent-to-Own a Home in Sherwood Park, Alberta

Edmonton, Alberta has a delightful community closeby called Sherwood Park. This flourishing neighbourhood, which is a part of Strathcona County, offers a welcoming blend of urban conveniences and the tranquil beauty of a small town. Sherwood Park, which has a population of over 70,000, offers a distinctive combination of opportunities, a strong feeling of community, and easy access to the city of Edmonton.

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The economy of Sherwood Park is booming as a result of the presence of numerous industries. The city's thriving job economy is influenced by the healthcare, education, technology, and retail industries. Residents of Sherwood Park have access to a wide range of job options and opportunities thanks to its advantageous position within the Edmonton metropolitan area.

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Real Estate Trends in Sherwood Park, Alberta

Knowing the current situation of the Sherwood Park real estate market is crucial for making informed judgments about rent-to-own houses. Let's investigate the housing market's dynamics, giving important details about home prices and the ever-changing levels of supply and demand.

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The real estate market in Sherwood Park has a wide range of choices to accommodate different tastes and price ranges. You can find a perfect alternative whether you're looking for a cozy townhouse, a large family home, or something in between.

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This community comprises numerous smaller neighborhoods, each with its unique charm, catering to various lifestyles. Educational excellence is a priority with the presence of New Horizons Charter School for gifted children. Proximity to Edmonton ensures easy access to jobs and education.

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Sherwood Park's housing supply is still rather limited at 131 new listings as of August 2023, a tendency that is shared nationwide. The constrained housing inventory has led to an increase in home prices. Data from zolo.ca indicates that the average price of a detached home in Sherwood Park in 2022 was $307,000, marking a year-over-year decline of 25.1%. 

How Does Rent-to-Own Work in Canada?

Rent to own program is an innovative solution for those who want to own a home but are not able to qualify for a mortgage. It provides a unique pathway to homeownership that is ideal for those who may not have a significant down payment, a high credit score, or a stable income.

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The unique rent-to-own concept of homeownership allows you to rent a home with the intention of purchasing it at the end of your contract. This plan attempts to bridge the gap for prospective homeowners who face obstacles like a lack of Canadian credit history, poor credit, a low income, or the issue of saving for a sizeable down payment. 

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An illustration of how the finances for a rent-to-own scenario may look is as follows:

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Approved Home Purchase Price: $250,000

Initial Down Payment: $250,000 x 2% = $5,000

Monthly Payment: $2,356 (Rent: $2,093 + Savings: $263)
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Cumulative Savings: $5,000 + ($263 x 36 months) = $14,468

Buy Back Price After 3 Years: $289,406

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What are the Benefits of Rent-to-Own?

1. Easy Access to Homeownership

Renting to own can be a great choice if you're not quite ready to buy a home but still want to go on the property ladder. Obtaining a mortgage approval can be difficult, particularly if you have poor credit or insufficient funds for a down payment. Renting to own enables you to accumulate equity in the property while you do so and get ready to buy it.
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2. Option to Try Before You Buy

You can test out a house before you decide to buy it by renting to own it. Before making a purchase, you may make sure the house lives up to your expectations and is a good fit for you and your family.
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3. Fixed Price and Terms

The opportunity to lock in the price of the home and the rental terms is one of the biggest advantages of renting to own. As a result, the price of the house and your monthly payments are rather predictable.
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4. Credit Improvement

Your credit score can rise if you rent to own. When the rental agreement is over, it will be simpler to get a mortgage if you pay your rent on time and in full. This will also help your credit score.

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If you're ready to take the next step towards homeownership, Requity homes might be a best option to help get you and your family into homeownership sooner than you could have ever imagined.  Get pre-qualified and start your homeownership journey today >

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