Lease option benefit

What is actually a lease option? Basically, it is a lease that gives an option to renter to buy a home in future or perhaps serve as a period where buyers can restore their credit. Nevertheless it also gives real estate investors to generate long term cash flow by renting it out to tenants. Lease options are mostly being done by paying an initial down payment prior to the agreement to be sign. Terms and condition of the contracts must be explained in detail which includes monthly installment, interest rate, purchase price, expiry date and so on.

Benefit

· Buyer is able to move and stayed in the house without need to pay a 10% of down payment. Nevertheless home owners are able to get more money initially from lease-option as compare to rental deposit receive from normal tenants.

· Investors also able to get higher sales price for it. This is because whenever a property is staying by tenants are able to get higher sales price. This would create a perception to the buyer that the properties are worth to be purchase as there are many renters for this property.

· Good credibility of your ability to repay loan in future. For example if you having extra income other than your base salary, then it is very crucial for you to show it if you thinking of getting finance to purchase a home. As so this is one of the benefits you could get from having a lease option.

· Low maintenance costs. The investor of the property will not have to spend a lot of money on the maintenance of the property. This is due to whenever someone buys houses; it is assumed that the repair and maintenance become their responsibilities for that house. This could be very beneficial to you as an real estate property investor.
 
. As a buyer you can get a better feel of the neighborhood and make them self comfortable around the local culture. In this way they also get to test if the locality suits them for the kind of lifestyle they would want to live in future. You can plan to move on to other place earlier if it’s really do not suits you.

Thus you may find yourself whether as an investor, a buyer or seller are able to gain a lot of benefit from lease option and nevertheless it could give you a positive return no matter who you are.