Rent to Own Homes in Indianapolis

For residents interested in traveling the world or required to travel for work, Indianapolis International Airport is less than a 30-minute drive from most areas of the city. The IndyGo public transportation system provides safe buses for those interested in catching a ride around town.

Buying a Home in Indianapolis

Indianapolis was hit hard by the economic struggles that affected most of the world during the first part of the 21st century. A record number of homes were put into foreclosure, and many homeowners struggled with mortgages more than 60 days delinquent. 2015 brought growth in all economic sectors for the state, including the real estate market. Prices started to come back up, fewer homes were put into foreclosure, and more buyers entered the market.

This may not sound good for buyers interested in securing a bargain on a high-value Indianapolis home, but there are still quite a few foreclosure homes sitting empty. While they aren’t all move-in ready, you may consider buying one in need of minimal repairs to secure a more affordable price. As the Indiana economic situation continues to rebound, many of these homes will disappear quite quickly either to developers interested in investment property or homeowners willing to create a masterpiece from squalor.

The Spirit of Indianapolis

Indianapolis residents beam with pride over the Colts. Whether they’re in the stadium, at the bar or on their couch for games, residents love to cheer them on. Football isn’t the only sport that has residents on the edge of their seats for games. Indianapolis is also home to the Pacers basketball team and the Indians baseball team. Victory Field is a great place to be for fireworks nights in the summer while you’re cheering on the Indians. And Pacer games can be just as exciting as the Colts games. The city is also known to many because of NASCAR and the Grand Prix of Indianapolis.

Indianapolis is at the heart of the NASCAR scene, and locals love to cheer on the Colts when it’s football season, but this is a big city with far more to offer than sporting events. A Cultural Trail surrounding the downtown area makes it possible to enjoy your life without dependence on a vehicle, and the city is packed with restaurants, theaters and other entertainment options. There’s live music all of the time throughout the city and there are an abundant amount of museums.
One benefit of the city that most locals enjoy is access to the Indianapolis Cultural Trail. This is a paved trail that winds around downtown Indianapolis, connecting residential areas to businesses, parks and entertainment venues. This trail system encourages a healthy lifestyle and makes it easy to bike or walk to work.

Popular Neighborhoods in Indianapolis

If you want to ditch your car for an enjoyable walk or bike ride to work, consider downtown Indianapolis. You’ll have immediate access to the Cultural Trail as well as the many restaurants and entertainment venues in this area. If you’re more interested in a quaint neighborhood with manicured lawns, walkable sidewalks and play areas for children, head south of downtown to Perry Township. The homes here are bigger and many come with acreage.

If you’re home shopping on a budget and don’t mind getting your hands dirty with some much-needed renovation, consider the smaller and older homes of Lockerbie Square. It’s possible to turn a bargain home into your dream home in this area. If you don’t want a small home and like the idea of living in a loft carved from a warehouse or other innovative concepts, look for space in the Fountain Square neighborhood.

Buying vs. Rent to Own Homes

There’s nothing better than the feeling of security and stability that comes with home ownership. While you may long for that feeling, you might not be sure that you will qualify for a mortgage or loan right now. Does that mean you aren’t ready to buy a home? No, it doesn’t. If you’re willing to accept rent to own terms, you could immediately move into a home that could be yours soon without assuming the financial burdens of homeownership right away.

Rent to own means that you rent the home with the intention of owning it. When you move in, you pay an option fee, which secures you the option to purchase the home that you are living in at the end of your lease. You pay rent, just like you would in any other rental property; however, when you’re leasing with the option to buy, you pay a higher rate for your rent. The extra money that you pay every month goes into an escrow account that no one can touch until the end of your lease. Once your lease is over, you can use that money to put a down payment on the home if you decide to purchase it. If you decide not to purchase, or don’t qualify for a loan at the end of the lease, the person who was selling their home to you gets to keep the money.

It is very important that while you are leasing the home, you work hard to make sure you qualify for a mortgage at the end of the lease. Whether that means saving up for a larger down payment, improving your credit score or paying down your debt is up to you. You should meet with a financial advisor to see what you need to qualify for a loan and map out a path to get there.

It’s easy to save while you’re renting to own because the landlord continues to pay the insurance and the taxes on the property. Check your contract to see if the landlord also remains responsible for maintenance and repairs on the home until your purchase date.

Indianapolis is a great place to participate in rent to own because the economy is just beginning to recover from the recession. If you sign a rent to own agreement today, and the lease lasts for three years, you will pay what the house was worth today, not what it’s worth then. The economy in Indianapolis began recovering from the recession recently; therefore, prices are still low enough to get a good deal. Don’t miss out on great opportunities because you may not be financially ready yet, lock in today’s rates for when you’re ready.

Cost of Living in Indianapolis

While the cost of living in Indianapolis is slightly higher than the average for the entire state, it’s still approximately 11% cheaper than the national average; however, it is one of the largest cities in the state and there are more opportunities for employment and earnings growth. You save big time when it comes to the housing market in Indianapolis. Housing is approximately 28% lower than the national average. This means you will pay a little bit less than what everyone else is paying across the country for goods, services, groceries and other daily expenses, but you’ll likely pay much less than many others for your home.

Summary

Indiana is a business hub for the United States. People move here for financial opportunity, sports and natural beauty. The city also boasts a low cost of living, so your dream home doesn’t have to leave you in the poor house.