Buying any property has its advantages and disadvantages both to sellers and buyers. Please see below the possible for Rent to Own Condos.
Advantages for the Buyers
- Buyers can have a property immediately while given time to rebuild their credit.
- The buyer was able to test the unit before buying it. If he found it not conforming or not as per his expectations, he has the option not to buy the unit. In this way, he can go away from possible headaches in the future.
- If the buyer chooses to buy the property, which has a fixed price, they might benefit if the market price appreciates during the selling time.
Advantages for Sellers
- The property of the Seller, which is empty possibly for a long time, was able to generate income, which can assist the Seller in paying off monthly amortization and other fees related to the condo.
- Even if the buyer decided not to buy the unit, nothing is loose on the seller’s side because his unit earned an amount and will continue to make more upon seeing a new buyer or lessee.
Disadvantages for the Buyers
- If the buyer chooses not to buy the unit, all paid rents, including those supposedly for the down payment, will be forfeited.
- If the buyer, on the other hand, chose to buy the unit, if the unit depreciated over the rental period, the buyer will still have to pay what had been agreed and might be higher than the actual depreciated price of the unit.
Disadvantage for the Sellers
- The stated selling price from the beginning will be the final price during the selling of the unit. The Seller can’t apply the current market value of the property if ever the property appreciates the value at the time of sale.
It is always highly recommended to discuss all interests to avoid any court session in the future. It is also best to have a Property Specialist Lawyer when entering into the contract so all clauses will be explained and discussed to you. It is also best to visit the existing laws of the government regarding renting or leasing a property.