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Rent vs Buy in San Jose : Real Estate Advice

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  • Home Buying886
  • Home Selling129
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Activity 6
Mon Jul 3, 2017
Kathy Burgreen answered:
You seem to misunderstand how Rent To Own or Lease To Own works. This method requires you to pay a large upfront deposit which goes towards the purchase of the home + you pay a monthly rent determined by the owner + you pay a monthly premium amount which goes towards the down payment. You will also be required to sign a contract. The contract typically states that if you don't purchase the home for whatever reason, the owner / landlord will keep all of your money. You do not get any refunds. This is why Rent To Own is a great deal for sellers / owners and a very bad deal for renters.
As much as you think you will buy that home, you need to think: Since a typical Rent To Own lease is 1 - 3 years, suppose at the end of the lease, you don't qualify to buy that house. Lenders will need to verify your employment, income, savings, credit, debt to income ratio and tax returns. If you can't get a loan from a lender, the owner / landlord is not going to sell their house to you and will keep all of your money.
Another situation: suppose you lose your job, have a medical crisis, find a job out of town and need to move elsewhere, etc. You're not buying that house and you just lost thousands of dollars.

Your best method is to continue renting the regular way, save up some money until you're ready to buy, then talk to a lender. Sorry but you need to rent for now.
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Fri Sep 9, 2011
Roz Mcclure answered:
Many of my clients choose to rent because they are unsure of where their company is going to transfer them and they do not want to have to sell their home in the next year or two.
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Wed Sep 22, 2010
Mary Sheppard answered:
This is a great time to buy! Home prices have come down considerably and have never been more affordable. Interest rates are at historic lows. Can they really go much lower? Selllers are motivated to sell so buyers have a large inventory of property to choose from now. Additionally, you’ll have bargaining power. Lenders are lending. If you have a job, a reasonable down payment, and good credit, takes the plunge!

Rents are back on the rise while property prices, according to some experts, have dropped nationwide by 30% to 40%. Other experts believe we are back to 2002 property values.

If the above wasn’t compelling enough for you buy a home, keep in mind that you can deduct property tax and mortgage interest expense on your tax return. Check with your accountant or tax expert to confirm your projected deduction based on your specific circumstances. This is better than taking a renter’s credit on your tax return. Finally, owning property could be your biggest retirement nest egg. Instead of paying a landlord rent you are investing in an asset you own!
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Mon Jun 8, 2009
Leasing To Own Solutions answered:
Katie,

If you're still wanting to Lease-to-Own your house, let me know. My associate and I have people looking for single family houses in that area. She always has people calling her for Lease-to-Own houses but we don't have any to offer them.

And if you know of any other people that need to get their houses leased out by QUALITY TENANTS, instead of typical renters who come and go.....PLEASE LET US KNOW!

Thanks,

Darin
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Mon Jan 19, 2009
Eric & Janelle Boyenga #1 Team answered:
You have the right to rent your property to section 8 Tenants, though I would always recommend looking at all your rental options. You may be able to obtain a higher lease rate on the open market. If you have any more questions or concerns feel free to call or email our team.

Warmest regards,

Eric & Janelle Boyenga
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Mon Jan 5, 2009
Rebekah Owen, Broker answered:
Hi Pamela,

This property is a short sale - which normally means the owner is behind on their mortgage and owes more than the sale price.

So, the short answer is "no". This owner is in no position to offer that.

That being said, there are other properties. Do you need to stay in this neighborhood?

Rebekah
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