4 thoughts on “I am considering a lease with option to buy is this a good way to come onto home ownership?”
This works well if the market starts to appreciate.
The benefit of the lease option is that you can watch the market while you are renting. For the right to that option, you will pay a premium on top of normal rent (which you negotiate with the seller). If the market appreciates, you then can purchase at a discount to the current appraised value at that time, giving you instant equity. If the property does not appreciate in value, you can walk away
How much will you have payed if you go the lease to buy route vs. how will you have payed if you just buy (include accrued interest on the loan as well, depending on the loan length and interest rate).
It has been done successfully before. Just be careful that on the contract all "T’s" are crossed. Read the fine print. It would not be a bad idea to have an attorney look the contract over before signing anything. Or, if you are lucky enough to have a Realtor, Attorney, or Paralegal for a friend, ask for their assistance to read over the contract with you. I can’t stress this enough, "You can’t be too careful."
As a Realtor I can assure you that the buyer rarely wins in this situation but the seller has nothing to lose. You can lose your upfront money and the extra money you paid each month for the option.
This works well if the market starts to appreciate.
The benefit of the lease option is that you can watch the market while you are renting. For the right to that option, you will pay a premium on top of normal rent (which you negotiate with the seller). If the market appreciates, you then can purchase at a discount to the current appraised value at that time, giving you instant equity. If the property does not appreciate in value, you can walk away
How much will you have payed if you go the lease to buy route vs. how will you have payed if you just buy (include accrued interest on the loan as well, depending on the loan length and interest rate).
It has been done successfully before. Just be careful that on the contract all "T’s" are crossed. Read the fine print. It would not be a bad idea to have an attorney look the contract over before signing anything. Or, if you are lucky enough to have a Realtor, Attorney, or Paralegal for a friend, ask for their assistance to read over the contract with you. I can’t stress this enough, "You can’t be too careful."
As a Realtor I can assure you that the buyer rarely wins in this situation but the seller has nothing to lose. You can lose your upfront money and the extra money you paid each month for the option.