Belleville Rent-to-Own Opportunity

About Belleville:

Belleville’s real estate market is displaying strong signs of growth and attractiveness to homebuyers.

Significant Price Increase: In just the last month, the average home price in Belleville saw an impressive jump of 11% compared to the average selling price of the last 12 months. 

Surge in Listings: The number of homes listed in the recent 30-day period has risen by 33% compared to the previous month and a staggering 217% increase from the same period in 2023. This level of activity suggesting a buyer’s market with less competition.

Growing Population: The area’s population is poised for growth. Belleville exceeded its 2023 new housing starts target by 122%. This performance pushes the city closer to help meet the province’s ambitious 10-year goal to build new housing and helping make Belleville a place more people want to live in and drive demand for homes.

Continued Development: Belleville has the potential to get up to $2.3 million in funding for new homes. Such initiatives are likely to bolster confidence among investors and homebuyers alike, sustaining demand.

About the tenant-buyers:

Meet Amanda and Carole, a mom and daughter team who realize that they cannot own separate properties so have united on their quest to find a safe, secure property for their family. Amanda, a mom of 4 (12, 8, 6 and 3) has gone through a rough separation from her partner. Financially, she was forced into bankruptcy to get out from under it.  Carole on the other hand has been helping Amanda out with the kids and decided to move in to save on rental money. While the traditional mortgage route proved a challenge due to the initial down payment and Amanda’s student loans, they’ve already taken a significant step by saving $18,000 and are looking to a 4-year RTO term to help them build up the rest. They found an affordable Belleville property and are ready to turn their dream of owning into reality by 2028. 

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Income

Amanda and Carole bring in a combined annual income of $108,348. Amanda earns $23,424 annually, guaranteed income through the Ontario Disability Support Program. She also receives child support from her ex-husband which is court-ordered and brings in $7,560 a year while also receiving child benefits to the amount of $40,164 annually.  Her mom, Carole earn $15,600 annually, also guaranteed income through the Ontario Disability Support Program. Carole is also earning fixed income from an investment she made over 20 years ago. She earns $21,600 a year. The payments of a fixed-income security are known in advance and remain fixed until the investment is paid out when she is in her mid 70’s which is still 10 years away.

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Credit

Carole is not carrying any debt and has a decent score of 662. Amanda’s current credit score is at 551. Her score took a hit after her separation when she was forced into a consumer proposal as her ex stopped paying on the joint accounts.  She recently paid the consumer off and will continue to focus on re-building her credit, paying down her car loan and a student loan.   While she has already begun to work on her credit, Amanda will receive more guidance from a credit specialist and a Clover Properties-approved mortgage professional to help her become mortgage-ready by 2028.

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Property

Amanda and Carole have found a house in Belleville that’s perfect in terms of affordability and location.   This well-maintained detached  4-bedroom, 1-bathroom starter home has room for the family if they choose to finish the basement and has a large, fenced yard for the kids to play in.  The house is located just minutes from highway 401.  Located in the quiet east end, this property is close to parks, schools, amenities and is just a short drive to the downtown filled with shopping and restaurants.

Next Steps

With Carole’s and Amanda’s guaranteed government income and Amanda’s mama-bear determination to succeed, this rent-to-own deal means more than just profits, you’re also investing with the purpose to helping Amanda and her kids make a fresh start for a more promising future as homeowners. If you’re able to qualify for a mortgage of $279,920,  you can enjoy monthly cashflow of approximately $569 for 4 years. Click the green button to snag this deal.

 

 

Deal Summary:

Term: 4 years

Purchase Price:  $349,900

Estimated Investment Required: $72,405

Estimate ROI: 28% (based on 5.99% and a 4-year deal)

Estimate Returns: $80,156

TB Down Payment: $18,000

Numbers Summary:

Monthly Payment: $2,866

Condo Fee: $0 (tenants will pay this)

Monthly Cash Flow: $569

Future Purchase Price: $435,306 (after four-years)