To Buy or To Lease
June 16th, 2008 | 
Author: Buying and selling means more than finding a real estate agent to do the work that is needed. There is also the need to make sure that you know what you want or need when you are moving with the investment. No matter what the market, there are always different moves that you can make in order to get the right person moved in to your property.
Leasing is one of the several ways that you can move into a real estate investment. If you are having difficulty selling your home or property, then you can consider leasing as an option instead of selling it. If you decide to use the lease option for the property, then it means that you will become the landlord for a period of at least one year. The tenant will have a contract that is signed for this amount of time that says to take care of the property and pay rent. After the time period is up, the tenant will have the option of buying the property from you.
If you are considering buying a home, this is a good first step to get into. You will have lower payments, will be able to build your credit, and will have the option of trying out the property before you buy it. If you are selling the property, it can also be beneficial, as it allows you to demand a higher price and move into a better market when it is time to sell. Usually, by the time you are ready to sell, you will be able to offer a price that is ten to twenty percent higher than it would have been a year before.
If the market isn’t right, you can’t sell your home, and the right options don’t seem to be walking through the door, then leasing is a second option that you can consider. By leasing the property, you will have the ability to profit on either side of the fence.
Posted in Real Estate
If you don’t a lot of cash, leasing is better option. Buying always the best option to get capital gain.
I tend to think that buying is particularly better just because when leasing, if not on lease to own, you pay into it for x amount of years, and have to give it back with nothing to show for it.
One thing that made sense to me was the price-to-rent ratio (PTR). It’s done by taking the average annual rental rate and dividing it into the realistic price that the home would rent for. According to many pros, the intruiging figure to go off is 15. Anything above 15 is typically a time when prices are too high. Anything below 15 is typically when more buyers become interested.
Good post, useful blog, thank you for your work, keep on, guys!