Anyone ever go the route of lease with option to buy a home in Austin or surrounding areas? (West: for sale)

[rentter]

If so, can you share your experience both positive and negative? Would you recommend it?

Thanks

[CptnRn]

From the point of view of a landlord, I'm not sure why this would be an attractive option as opposed to just selling outright. You either want to be a landlord or you don't. Why subject yourself to a contract that ties you into an unpredictable relationship such as this? The only positive I've heard is that most tenants who have chosen this option end up paying higher rent, but rarely ever complete the purchase. I have also heard that tenants often take better care of the place when they know they might end up owning it.

This might be an attractive option for a limited time, say 5 years. But I would not want to get locked in for longer than that. I can see as a possibility if a person owned a property in an area where it was hard to sell, this might be a little more attractive.

This might help. http://www.businessinsider.com/lease...sellers-2011-5

[centralaustinite]

Have you found this to be an option in Austin? I remember it occurring every once in a while 20 years ago but I haven't heard it since. It is common in depressed markets and thin markets where there isn't much demand (small town Iowa for example) but I would be surprised to find anyone offering lease to own as an option here.

[FalconheadWest]

It's not common anymore because agents are not allowed to help facilitate them, only attorneys and most buyers in bad situations can't afford an attorney, muchless the 10%+ non-refundable down payment owners would want.

There are programs where the company buys the house for the buyer, the buyer rents from the company with the option to buy within 3 years. Upon the company buying, the person will already know the cost to buy the property in X amount of years as it's a set number, and definitely not today's price. They are also told the rent for the first, second, and third year as it does go up each year, just like the buy-out price goes up.

[rentter]

Originally Posted by centralaustinite

Have you found this to be an option in Austin? I remember it occurring every once in a while 20 years ago but I haven't heard it since. It is common in depressed markets and thin markets where there isn't much demand (small town Iowa for example) but I would be surprised to find anyone offering lease to own as an option here.

The reason I asked is because my family will be relocating soon to Austin area. Since we are wanting to lease a home and then eventually buy, one of my friends suggested this option to cut down on multiple moves. Plus it gives us an option to stay in a lease home that we could possibly love.

I don't know anything about it and that is why I posed the question here.

[rentter]

Originally Posted by FalconheadWest

It's not common anymore because agents are not allowed to help facilitate them, only attorneys and most buyers in bad situations can't afford an attorney, muchless the 10%+ non-refundable down payment owners would want.

There are programs where the company buys the house for the buyer, the buyer rents from the company with the option to buy within 3 years. Upon the company buying, the person will already know the cost to buy the property in X amount of years as it's a set number, and definitely not today's price. They are also told the rent for the first, second, and third year as it does go up each year, just like the buy-out price goes up.

Thank you for the information. How would one go about finding those types of programs?

[rentter]

Originally Posted by CptnRn

From the point of view of a landlord, I'm not sure why this would be an attractive option as opposed to just selling outright. You either want to be a landlord or you don't. Why subject yourself to a contract that ties you into an unpredictable relationship such as this? The only positive I've heard is that most tenants who have chosen this option end up paying higher rent, but rarely ever complete the purchase. I have also heard that tenants often take better care of the place when they know they might end up owning it.

This might be an attractive option for a limited time, say 5 years. But I would not want to get locked in for longer than that. I can see as a possibility if a person owned a property in an area where it was hard to sell, this might be a little more attractive.

This might help. Lease-Purchase Options: How they Work, Pros + Cons for Buyers + Sellers - Business Insider

Thank you for the information.

[Austin97]

Originally Posted by rentter

The reason I asked is because my family will be relocating soon to Austin area. Since we are wanting to lease a home and then eventually buy, one of my friends suggested this option to cut down on multiple moves. Plus it gives us an option to stay in a lease home that we could possibly love.

I don't know anything about it and that is why I posed the question here.

I would say many larger (2500+) homes for lease are because the owner couldnt sell. they may want a buyer that can make it easy to sell and are renting right now just to cover their payments. If you lease, you might not be able to guarantee a sale, but might have first dibs if you put a competitive offer so they dont have to get it ready for sale.

Im looking at a house that is leased out and is 4K sq ft. The original owner moved and thought they were coming back but arent, so now they want to sell. The current tenant wants to buy it so might be able to.