I’ve been presented with the opportunity of renting with an option to buy. Is there any benefit to this?

Renting with an option to buy can be very beneficial when you don’t have enough money for the down payment, or when you just want to try and see if you like the house, the neighbors and the neighborhood without the commitment of a home loan.  But before you make a decision, there are a few things you must be aware of.  To start, when you rent with option to buy, your monthly payment is higher than other, similar houses in the same area. This excess amount you pay monthly, is accumulated in an account and can be used towards the down payment of the house.  It’s very important to have a contract that stipulates the exact amount of your monthly contribution to this account.  Now, what happens if you change your mind and decide you don’t want to buy the house after all because the street is too busy, or the neighbors are too strange? Make sure that the contract clearly states that you can opt not to purchase the house and that it specifies that the accumulated amount will be refundable.