Home Buying in Myrtle Beach>Question Details

amlife, Other/Just Looking in Myrtle Beach, SC

I have heard that lease to own properties are advantageous only to sellers. Is this true?

Asked by amlife, Myrtle Beach, SC Tue Sep 17, 2013

Help the community by answering this question:


Yeah, I think so.

If you're looking to buy a house to live in, rent-to-own, you're going to get clobbered. If you're an investor looking to get into a property and finance your way out of it relatively quickly, you might be able to make the numbers work.

To my mind, the test is simple - if your credit will allow you to qualify for a mortgage and you have the cash on hand to make the deal happen, rent-to-own isn't for you. And if you can't qualify for a mortgage, then you shouldn't take on a rent-to-own.
1 vote Thank Flag Link Tue Sep 17, 2013

That is not true.

A properly structured one is advantageous to both buyers and sellers. For example:

*A lease-to-own can let you control (via the option) the home today, even though you might not be in a position to buy it for years.

* A lease-option property gives you the right but not the obligation to buy. So if prices drop, you can simply walk away. If you'd bought the property, you'd be "upside down" or "under water."

* A lease-option generally builds up your equity faster than a 30 year amortized mortgage will.

* Looking at lease-options gives you a wider range of choices than just looking for properties for sale or properties for rent.

* A lease-option locks in a future price today. Consider: Lots of areas that are "hot" now weren't 3 or 4 years ago. What if you'd been able to lease-option a house in one of the currently hot areas a few years ago when things were much slower...and prices were much lower?

* The option fee for a lease-option can be (should be and usually is) less up-front money than a down payment would be.

I could go on and on, but you get the idea. Properly structured, lease-options can be highly beneficial for buyers.

Hope that helps.
2 votes Thank Flag Link Tue Sep 17, 2013
Don Tepper, Real Estate Pro in Burke, VA
Lease to purchase, if prepared so that it is agreeable to both parties is a wonderful way to own a home if you cannot get a mortgage. Renting is a total loss of money, Lease to purchase is an opportunity to own your own home. It is as simple as that. There is no reason to make it a complicated agreement, it is more on what the owner and the buyer can agree on amicably and fair. I done them before and they can be a win win!

If you have any further questions, please give me a call at 860-262-1203.

Nancy DiMauro
SC Real Estate Network
0 votes Thank Flag Link Thu Sep 19, 2013
To be clear, the reason a lease-purchase is advantageous to the Seller is, the Buyer is relying upon the occurrence of some "future" event! Before entering into this type of agreement, you should be make application with a lender so you have an understanding of what is preventing you from purchasing "today." With this information, you can make a determination of the likelihood of your performance (buying the home) when the time comes.
0 votes Thank Flag Link Wed Sep 18, 2013
It depends on how the contract is structured. But it can be fair & have advantages for both parties. I would definitely suggest using an agent experienced in Lease Option Purchases or consult an attorney.
Christine House
Web Reference: http://ChristineHouse.com
0 votes Thank Flag Link Tue Sep 17, 2013
Dear Amlife,

If it is the only way for one to purchase a property, then it is advantageous for both sides (In most cases). The leases in question must be taken on a case by case basis. I am a firm believer that it is far better to own in this economy then it is to rent.

Email me and I will email you ALL of the lease to own properties listed. mikejcostello@hotmail.com

Thank you,
Michael J. Costello
Sea and Sand Realty
Myrtle Beach, SC.
(843) 333-1059
0 votes Thank Flag Link Tue Sep 17, 2013
What exactly have your heard to lead you to believe lease to own homes are a one sided transaction in favor of the seller? It could go either way or be completely fair.
0 votes Thank Flag Link Tue Sep 17, 2013
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