Your landlord has given you notice to quit the apartment you occupied, and you do not have enough savings for a down payment on a new home. You cannot rely on your credit rating, which is quite shabby. You try for a mortgage loan but get the cold shoulder. Your real estate agent showed you a lovely home in Boston which you are unable to buy. Good news! The owner of the house is willing to consider a lease option and your real estate agent is pushing you take it. What exactly is a lease option and why should you take that on?
A lease option is an agreement with the owner of a leased property to offer the lease holder, or lessee, the opportunity to purchase the property at the end of the lease period. This is a legally binding option that the lessor cannot back out of, and this will make the difference between you owning the home of your dreams or walking away in dejection. With this option, you have time to save your money as well as improve your credit rating during the lease period. It is sometimes assumed that properties for rent such as Boston rental apartments are also properties for lease. This is not so, as rental agreements are quite different from lease agreements, and do not contain provisions for tenants to eventually purchase the apartment or house.
So, if you are in the Boston area and searching for apartments or homes to lease make sure these are not Boston MA apartments for rent. If you believe that a lease option could take you toward a new home, you may want to consider a number of points before you take up the lease. First determine whether a lease option is the best way to go toward owing your new home. If you are determined to own the house then by all means, take the lease agreement and go for it. If however, you are not certain that you will in the end buy that house, then the safer option is to rent it, or go for another place.
Slick marketing often presents leases as painless options that are viable alternatives to rent. Seriously, you must consider whether you can really afford the lease option cost that you must pay upfront to secure the lease contract. This is typically up to 5% of the property purchase price. You will also need to figure out how you will afford the monthly payments for the lease property, which is typically higher than rental as it also contains the lease option funds for the eventual purchase of the house. You will also need to think long term and confirm whether you really want to remain in that neighborhood. There is no point investing in a home for the long term in a neighborhood that is showing signs of deterioration. Finally, and importantly, you will need to find the funds in advance of the lease period closing date to buy that house.
Please contact Tazar If you looking for a Boston university apartments or if your looking for a jobs in MA that has the potential to make over 150k+ your 1st year. Thank you for reading and please let us know if you like to read more about Downtown Boston apartments.