3 ms·
There are other options that are better than a simple rental such as a lease option or a land contract sale. The renter /purchaser ends up owning the property a
by dave333 3y ago
There are other options that are better than a simple rental such as a lease option or a land contract sale. The renter /purchaser ends up owning the property and the seller/landlord can get rid of his property at a decent price in a falling market.
- AnthonyMouse 3y agoThat's effectively what a mortgage is. But then the "rent" would have to be higher by the amount that buys out the existing owner's principal, which is generally higher than a mortgage payment when you also expect the existing owner to pay to maintain the property in the meantime.
- dave333 3y agoYes on a lease option the sale happens at the end so seller pays maintenance but on a land contract the sale is up front and seller just finances it so doesn't have to maintain.
- AnthonyMouse 3y agoSo then the tenant has to maintain the property, which increases their costs. The point is that all of these options are already available, but there are trade offs inherent in them that make them a worse option than renting for many people. If they were actually better, why aren't they doing that now?