since it's gonna take a little longer to fix our report then originally thought, and since we HAVE to be out of our present home by august 1 - i have a question off topic we have an opportunity to go with a lease with option to buy for a home is anyone familiar with the pros and cons of this kind of arrangement? i would like for this to be a win/win situation and i know we will qualify hands down next year for any mtg with any company - just right now, we are having problems any ideas? peace, jimrie
Hmm Leases are always a lose lose situation if you plan to keep whatever you are leasing... car, house, etc you'll end up paying more for it in the long run.
well it's either rent straight out with no hope of owning, or having a chance to buy at the end of the pre-described period of time thanks anyone else? peace, j
Well you answered your own question right there. Anything is better than rent. I feel ya. The houses round here are just under $500K for 2br. I have no chance, renting sucks..
sam you must live in a big city we are moving from a podunk one light town, to big city charleston, sc it's remarkable the difference in prices for example, we could buy five acres here for $15,000 there, one half and acre is at least $50,000 so.... what i am mainly looking for are contract guidelines that will be fair for both parties... anyone?
yes, I did that once with an apartment. 25% of the money went towards purchasing a new home. I don't have actual experience with lease to own where I lived, but the advice I could give is.... If you have a choice between spending all of your money on rent, or spending some on rent and some towards the purchase of a home, which one sounds more reasonable? I would read the fine print and find out if you are locked into a certain price when you do decide though. That could be where they are making out. No price negotiations=their benefit.
good idea help wanted - thanks this guy wants to set up a meeting with both families together to discuss terms. i want to have something together before we meet with him - he is being very reasonable with us on the whole thing, that is why i wanna win/win situation any further help will be appreciated peace, j
Anyone else have any guidelines they might share? Jimrie ====================== Most home shoppers are either brainwashed misinformed or under informed.
Usually you will get an option to purchase the home, at either a pre-determined price or some variation thereof based on it's current value plus appreciation when your option comes due (perhaps 5% above todays value if prices are increasing in your area at 5% per year). You obviously will be paying a premium for this option, either in higher lease payments than you would by simply leasing , or an up front option premium, or both. The up front option premium is usually forfeited if you later decide not to carry through the purchase of the home. If you do, a part of it may be credited to you as your down payment. A part of your lease payments can also be credited as down payment, when you purchase. Just be sure and read everything, and understand what your reading. If not, consult an attorney, but then again, they usually screw things up by wanting to be too careful. And lastly, RECORD your option to purchase, puting a cloud on the title if the seller decides to pull some funny stuff. That way, he can't sell it without first settling with you!
