Buying the House that you’re Renting
Byfalknor
Real Estate RSS Feed
With today’s skyrocketing house prices, few can actually afford a home that meets their needs. Homeowners are sacrificing their dreams to move into smaller, more affordable places. No more pool, no more luscious gardens. It does not have to the case, however, if you consider renting a home that can possibly be purchased later on. That arrangement – the lease-purchase or rent-to-own option is becoming more and more popular today.
What is a lease-purchase?
A lease purchase is basically an arrangement (contract) that you have with the landlord that states that you’re interested (first right of purchase) in buying the rental property after a set-time period. What’s great about these lease-options is that you can stipulate that you want you want a portion (or even all) of the monthly rental payments to go towards the down payment or purchase price of the house. Sometimes, however, the monthly payment might be increased by a small percentage since the landlord is basically removing the house from the market. Still, you come out ahead since you’re not throwing money down the drain, month after month, on rent.
Case in point
You’ve been searching the rental market for a few months because you’ve given up on finding your perfect home at the price you can afford. Finally, you find the rental house that’s just right (and affordable), and it happens to be a lease-purchase. You’re ecstatic since it gives you the opportunity to apply the rental money towards a down payment, something. Not only that, but you figure that in a few years time, when the purchase option becomes due, you’ll have a higher income to pay the higher monthly mortgage.
Let’s say that you find a lease-purchase for $2,000 per month (a little higher than going rates to compensate for the lease-purchase option), and after three years, a portion of that monthly rent (i.e. $400) goes towards the down payment. That means after 36 months, you’ll have $14,400 socked away for the down payment. In essence, the rental acts like a mandatory savings plan, forcing you to save towards the down payment. However, now you have the house you always wanted, with the required down payment, at the time you’re able to afford it.
Homelist24 online property listings have listings of properties for all types of tastes and needs, whether it’s an apartment for sale, a rental home or even a vacation rental. http://www.homelist24.com
Related Articles, Information, Products And Links
Related Articles on Real Estate
- We Buy House.
- Miami Bank Foreclosures Leading to Widespread Evictions
- The Benefits of Custom Modular Homes
- Renting as a Student
- Ask Your Real Estate Agent These Questions
- Austin Real Estate Now is the Time to Buy!
- Dubai realty market likely to stabilize by 2010
- Favorable factors in Brazilian property sector
- Property investments in Turkey – an alternative to Spain and France
- Real Estate Laws In Florida
- Nomorehotels.co.uk: Properties, Villas and Property for Cyprus
- A Selection of Luxurious Property in Dubai & Dubai Real Estate
- Find Manchester Serviced Apartments & Property in Egypt
- Bulgarian Properties and Dubai Properties at Nomorehotels.co.uk
- Nomorehotels.co.uk London Serviced Apartments & Dubai Serviced Apartments for Rent
- Nomorehotels.co.uk Red Sea Apartments & Egyptian Properties for Rent & Sale
- Ski Properties and Luxurious Resort of Pamporovo
- Florida Fort Lauderdale New Home Communities - New Homes Ft Lauderdale Florida Real Estate
- Condo or Co-op?
- Mistakes First Home Buyers make when they buy a house
- Information About homes in Freehold Twp NJ
- If it is not BuyATimeshare, Buyer Beware
- A Cost Effective Move To Apartments In Dallas
- Find The Perfect Apartments For Rent In Dallas
- What Does 5000 Euros Get You When Buying A Property In Bulgaria?
- Renting Out Your Home For The 2010 Olympic Games
- Luxury Dallas Apartments
- What To Consider When Renovating A Bulgarian Property?
- Time To Buy Your First Home In Tucson Arizona
- For Vacation, Seclusion, Peace And Comfort Get All: Vacation Rentals
Latest Articles on Real Estate
-
Best Apartments In Dallas
Dallas is the third largest city of Texas and is known as a metropolitan city. Dallas is very famous for its modern and exclusive apartments. And if you live outside Dallas then Dallas apartments for rent is the best option for the students who want to pursue their education in Dallas. Dallas offer apartment in its various areas such as Addison, Carrollton, Frisco, Irving and in many other parts.... -
Mortgage Ireland - Types Of Mortgage Loans
According to the Bank of Ireland, there are many different homeowner mortgage packages available. These include: a First Time Buyer’s Package, a Trade Up Mortgage, a Switcher Package, a Breakthrough Mortgage, an Equity Release, an Investment Property Package, and a Lifeloan.... -
Advantages To Condo Living In Puerto Vallarta, Mexico
Mexico real estate sector has evolved in last few years tremendously. The property sector has strived to cater to needs of discerning international investors who expect and demand word class facilities and innovations. One such trend has been condo living in Mexico. Condo concept is very popular all over the world and every year people are increasingly adopting this option.... -
Flat Fee Mls - List In Mls
Flat Fee MLS this means that you pay one small amount front and your property is List on MLS until it sells or until you end to verify it off the listings. If you sell your property on your own, you acquire the advantages of the List in MLS network by doing a Flat Fee MLS listing. Agents and buyers grill this database to find exactly the category of property that they are looking for.... -
Flat Fee Realtor - Listforsaleinmls
With Flat Fee Realtor you take advantage of the opportunity to get the most for your money, whereas with typical real estate listing agents, you must go by their rules and regulations and turning up with paying high sales commission on closing the sales.... -
Trends In Playa Del Carmen Real Estate
Playa del Carmen real estate has for many years been a favorite with International expats and tourists. A recent study showed that about 40% of the Riviera Maya real estate sold is being lapped up by foreigners. Of these, American and Canadian citizens constitute..... -
Do You Want To Be The Borrower Or The Banker?
The J. Hartman Company is a good resource for investing tips and financial information. According to Jason Hartman, founder of Platinum Properties Investor Network, the borrower has the most advantage during times of inflation. Here is an example of purchasing power and the decreasing value of the dollar over time:... -
Real Estate Investments – The J. Hartman Company 10 Commandments
Real Estate Investments should be part of everyone’s investment portfolio. Sure, like any investments, there is risk involved; however, the risk is greatly minimized by those who are properly prepared to make wise real estate investmentsJason’s Ten Commandments of Successful Investing™... -
Benefits Of Apartments For Rent Dallas
If there are any apartments in Dallas which offer comfortable and classy living, then they are Dallas apartments.Apartments for rent Dallas is the best option for people who can not afford to invest in real estate. Renting allows them to enjoy the amenities and culture without investing huge amount for staying in Dallas apartments.... -
Calculating The Real Costs Of Home Ownership
Homeowners insurance really depends on the value of your home and belongings, but you might be paying anywhere from $50 to hundreds of dollars a month to ensure that damage, vandalism, burglary, etc. can be repaired and items replaced. So that is something that you might need to calculate paying....
