Lease Purchase Advantages for HOME BUYERS
If you are in the market to buy a home, you are probably aware
of the advantages home ownership provides (tax shelter, appreciation, security,
One of the most powerful benefits of a Lease Purchase is the accelerated
rate at which you accumulate equity. Moreover, the buying power of a
Lease Purchase can quickly and easily land you a home that you would
never qualify for with a conventional buy/sell agreement.
||Your Rent Money is Working Toward the
Purchase of the Home: Every month a portion of your rent
payment is used to reduce (dollar-for-dollar) the price of the
||Your Up-Front Option Consideration is
Credited Towards the Purchase of the Home: This money
is your vested interest in the home and will be fully (100%) credited
to you when
you buy the home.
||Minimum Cash Out of Pocket: When
you purchase a home conventionally, lenders require you to pay from
5% - 20% down plus closing costs and prepaids. When you buy with
a Lease Purchase, you only pay the first month's rent, a small
security deposit and the option consideration. This will save you
25% - 85%.
||Profits from Appreciation: Since
the sales price is locked in before closing (as specified in your
any increase in property value above the selling price will mean
that your equity (what you owe minus what it's worth) is increasing
in the home.
||No Taxes, Less Liability: Since
you do not own the home (yet), you will not have to pay property
and your liability exposure will be dramatically reduced.
||Time: Before you actually buy
the home, you will have 6 - 24 months (depending on your agreement)
your credit, find the best interest rates, investigate the home
and research the neighborhood and/or schools.
||Privacy: Your name will not
be on the deed until you exercise your option to buy.
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