There are many that are questioning lease to own
programs and whether they really work for those that want a flexible option to moving
into a home. However, if you are
considering this option, then you will want to look at the several negative and
positive attributes that most are looking into.
This can help you to determine whether it will work for your lifestyle
needs and budget while getting the results that you need. Following are some of the top debates to
consider with this alternative.
There is no investment in lease to own programs. Many who are looking at real
estate value will not only consider the initial capabilities with a home, but
will also recognize the lost investment.
If you decide to lease a home, you have the ability to back out before
buying. However, the payments made aren’t
reflected on your history and it is similar to renting an apartment. While there is no investment, you will still
be able to build your credit through continuous rental payments with the
agreement. At the same time, you will be
able to move into an ownership program easily by taking the initial leasing
step, without the same obligations.
#2: When you work with a lease to own program,
you are paying off someone else’s mortgage.
One of the reasons why many won’t look at renting then owning a home is
because it will show on someone else’s credit and will go to their
creditor. However, working with someone
else who has a mortgage will also give you flexible contract agreements, lower
interest rates, and the ability to pay half what you would for a mortgage if
you were paying directly to a bank.
#3: With a lease to own program, you don’t have
control over whether you can stay in the home or not. There are several stories of those who decide
they don’t want renters on the property anymore and will tell them they need to
leave. While this is a common problem,
there are ways that you can combat against this to stay in a home. Contract agreements may have statements that
set specific timelines where you can stay in the home. You can also negotiate terms so the landlord
doesn’t take you off the property until a certain number of years have gone by
so you can decide whether you want to own the property or not.
Looking at the negative sides of lease to own
programs and finding a different approach can help you to move into the real
estate that you want. The flexibility
and the ability to look at the positive sides of renting first, then owning
will then provide you with a new way to get into the program for your real
estate needs. Understanding the
different type of investment that you will be getting into and making sure that
it fits with your budget and can provide you with a new alternative to moving
into the home you desire.