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Event date & time: 03.12.2020 at 12:00
Added by: ariasmith390@gmail.com
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Leasing with purchase option, a way to secure your investment
Renting a property results in a great expense over time, so getting to rent a house or apartment with an option to buy will allow your money to become an investment.
A lease with an option to buy is an agreement between the owner of a property and whoever wishes to rent it. Its main difference from other real estate contracts is that it gives the tenant the option and the right to buy the property at the end of a certain period of use.
Within this lease it is agreed how this transaction will be carried out, the price is established, the payment conditions, and what percentage of the rents paid will be taken into account to cover the total price of the property.
If you wonder if this type of arrangement is good for your economy, here we tell you what important aspects to take into account when you are about to live in a house for rent with an option to buy .
Characteristics of the houses for rent with purchase option:
- It must be inhabited for a period of time before having the right to buy it
- Lease conditions may vary
- The final price of the house is adapted to the total of the rents paid
- An agreement must be reached for the modifications made to the property
It must be inhabited for a period of time before having the right to buy it
When you sign a lease with an option to buy, you must pay attention to the marked time in which the property must be inhabited before the owner releases the right to acquire it.
This time generally accommodates the amount of monthly rent you pay and the most recent appraisal of the property.
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These terms are not short, generally, an interested party in buying the house or apartment they live in must do so for at least five years or more, although in some extraordinary cases, this amount of time may vary according to the interests of the two parties.
Lease conditions may vary
In some cases, when a house is rented, it is used to sublet it to other tenants, use it as a commercial space or occupy it as vacation or temporary homes.
As in any lease, when it is written and before signing, you must be clear about the use that you will give it and if the landlord agrees to allow his property to be occupied for different purposes, such as those mentioned above.
This in order not to affect your future right to buy and that the rents you are paying can really be used.
The final price of the house is adapted or not to the total of the rents paid
This aspect is very important to make the final decision to rent the property that you have in mind. When a lease with purchase option is signed, there are two options: the rents previously paid are taken into account or they are not taken into account and the full price of the property is paid.
Not taking into account the rents paid does not necessarily affect the tenant, since there are options to agree on a fair price for the property despite having paid a monthly rent to inhabit it.
On the other hand, when rent is taken into account, the percentage of this that will be taken to complement the final price of the house or apartment must be determined.
This percentage is chosen by analyzing the needs and interests of the lessor and the economic and payment capacity of the tenant, however, generally the amount that is agreed is 30% of the amounts paid.
An agreement must be reached for the modifications made to the property
If, while living in a house with the right to purchase, remodeling or significant changes are made, these must be evaluated and included in the purchase-sale contract that is made when making the decision to acquire the property.
Likewise, it must be determined if the investment made is subtracted from the final price or if these modifications increase the amount to be paid for the house; That is why it is always recommended to consult with the owner the actions to take so that, in the future, your economy and investment are not affected.
If you are ready to rent a house with an option to buy, don't wait any longer, find the ideal house or apartment for you here.
Event date & time: 03.12.2020 at 14:16
Added by: james.bond94615@gmail.com
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