A home purchase is a huge investment and costs a lot. Many first-time buyers think of renting to own. Is it a good way to start with Real Estate? We will discuss it in this article.
Renting to own also known as the lease option is a good way to get started with real estate. It will allow first-time homeowners or buyers who are not capable of making immediate purchases.
For example, you have found lovely luxury apartments Boston has for sale only to find out, you are unable of making the down payment immediately. Even though rent-to-own is designed to accommodate both the buyer and seller alike, all lease options work the same. Under this option, the renter agrees to an agreement to lease the house. The renter and seller may both agree on a pre-determined period. One to three years is the typical period and an upfront fee may be required. The portion of the agreed rent will go into a fund and will, later on, become the down-payment amount. Both parties will then have the opportunity to lock in at a certain price when they finally made the deal. They will also have the option to purchase the leased property at the locked-in price.
Finding the Perfect Timing
Just like the rest of home-financing plans, perfect timing is all that is needed. According to real estate broker Oscar Munguia, the current market situation is an important factor to consider. Munguia, the President of Consolidated Financial Group in Simi Valley, California said that at present, the real estate market is at its steady stage making it hard to find a good deal for a lease option. However, if an owner really needs to sell his or her home, then one could be lucky enough to find one.
The moment sellers start to lose money, they will soon decide to sell their homes, and lease options can be highly possible. This is when you can find some great opportunities on a wide range of property types.
The perks one can benefit from on lease options are obvious. However, the danger of forfeited money invested when the option to purchase is not exercised is also there. Therefore, you must do your research properly before getting into a lease-to-own deal of any kind.
Munguia warned every potential homebuyer to be aware of its consequences because even though lease options favor the buyer, they can also become complicated as well as dangerous especially those who are unfamiliar with how the process works. Therefore, if you were able to find Apartments for Rent Boston has and plans to buy it under lease options, make sure you have sought advice from a qualified broker.