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Is a lease option a good alternative to owning a home?
My husband and I want to upgrade to a bigger home, but we don't have the money or enough equity in our current home to do so. We've thought about selling, using the profit to pay off debt, and make a fresh start by renting again, but I just heard about lease options. What are the advantages and disadvantages of lease options and what should I look out for considering one?
Public Comments
- A lease option is the option to own the home. a portion of your rent is applied to the price of the house and the taxes . It might be a good alternative for you.
- A lease with an option to buy can be a very good deal for both you and the homeowner. You should see an attorney and have an agreement drawn up which would enable you to have a portion of your monthly rent be applied toward the purchase price of a home. An appraisal of the home should be performed at the time. Usually there is a time limit on the lease option (2 years, usually) after which another appraisal is done to determine a fair market value. The good thing for you is that you have a chance to truly experience the house and the neighborhood before buying. These houses are very hard to find, but there are more right now in this declining market.
