Benefits of a Residential Lease Agreement with Option to Purchase
Residential lease agreement with option to purchase is a win-win, in most cases, for all parties involved, regardless of whether you are an investor or someone looking to buy a home for your family.
5 Benefits of an Option to Purchase
Here are some of the benefits of a residential lease agreement with option to purchase.
1. You do not have to spend a fortune right at the outset to purchase the home. Many people do not have the down payment to buy a home and many families break their banks to do the same. With a rent or lease to purchase agreement, you pay option money at the beginning which is much less than the traditional down payment needed to buy a home.
2. You do not get ownership of the home immediately. You would get it eventually but not before the agreement closes. This allows you to be the homeowner but not legally. Hence, you would have your own home and enjoy privacy but avoid paying hefty taxes and other fees which an ordinary homeowner or property owner would have to bear.
3. You pay the option money and you keep paying a rent, which may be less or the same as a common mortgage payment. But the advantage is that the option money and the rent you pay are both sources of credits which can be used at the time of buying the property. It may so happen that your credits make up for the entire payment that you have to make at the time of buying and you may not have to pay anything more at the time of closing of the deal.
4. A lease to purchase agreement is simpler than applying for a mortgage, undergoing credit checks and then living with the mortgage for a better part of your life. Residential lease agreement with option to purchase gives you the peace of mind as that of a homeowner but the relaxed inhabitation as that of a renter or tenant and at the same time allows you to have an asset without making hefty investment.
5. You also do not have to wait endlessly to search for the ideal home loan and to get the mortgage approved. The entire process of such an agreement is swift, enabling you to move in quickly.
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