Leasing options are powerful tools, but if you can`t find sellers who are willing to collaborate with you and accept your option offer, you won`t benefit. If the tenant does not exercise the opportunity to acquire the property until the end of the lease, as a general rule, any prior option, as well as all funds paid by the tenant in addition to the market rental price for this option, may be withheld by the landlord according to agreement. This may be the case when the tenant no longer wishes to acquire the property or if the tenant wishes to acquire the property but is unable to obtain the necessary financing. You can either agree on a purchase price in advance or agree that the selling prices depend on an valuation at the time of sale. The values of the house may vary during the duration of the rental, so it is important to know if the price can be adjusted before the purchase. Personally, I want the monthly income to be worth it during the option period – because I have no control over capital growth (or owner behavior), so I really don`t know if I want to buy the property in the end or not. (In that sense, I basically treat them as a rental contract with the extra bonus if I can buy if I want to.) A lease-option to purchase may be a solution for some potential home buyers, but it is not suitable for everyone. If you are not sure you can buy the building at the end of the rental period, you may be better served with a standard lease. In the meantime, take the time to work on your credit, save extra money and get a better form of your finances so you can hit when the time is right. Finally, it would be a waste to spend extra money on a rental option and above-market rent, without making significant progress towards real estate ownership. The rent-2-buy contract gives the landlord the right to sell prematurely and terminate the tenant`s option, but this is usually in exceptional cases and tenants are compensated financially. Similarly, the tenant`s situation, if he changes after the first six months of rent, can terminate one month and lose his option to purchase. With the landlord`s contract, they can also pass on their lease and option to another tenant.
I take all the advice seriously and I am saving money to create the real estate I want so much… This will obviously take some time and as for Alexander`s idea of saving 45k after paying the consumer debt would take me years/decades. As Robert Kiyosaki said, savers are losers, and even if you have to go through that to begin with, I want to do something to be able to save much faster (as everyone certainly does).