bostonbubble.com

balor123 · Joined: 08 Mar 2008 Posts: 1204

How come there is no lease to own option for houses? I think this would be a better option for poor people than subprime loans. The main reason that I think this type of deal hasn't happened before is that everyone (buyers, sellers, bank) wants a quick transaction. For those who don't have down-payment, let them pay above market rent rate to build up downpayment. When they've reached a 20% down-payment, the bank will extend them a loan for the rest of the home. If they don't make it, then the home owner gets to keep the down payment. The usual rules for renting would still apply (lease term, early termination fees, security deposit, etc).

Guest · Posted: Tue Oct 28, 2008 8:23 pm GMT Post subject:

there are and it was a big "scheme" prior to the existing down turn for some investors-- in this market there are less people willing to be on either side of that deal due to falling prices and the leasees premium vs rent

john p · Joined: 10 Mar 2006 Posts: 1820

That's actually a pretty good idea.

Guest · Posted: Wed Oct 29, 2008 4:29 pm GMT Post subject:

This is not a good idea due to following reasons.
1. Not everyone is fit to be or want to be a landloard.
2. The risk of price difference in favor of either the buyer or seller side at the end of the lease.

balor123 · Joined: 08 Mar 2008 Posts: 1204

Maybe with a few patches then. Create some companies to buy houses from people and lease them out or just perform the maintenance. There was a startup which was doing something similar at one point though with their business model I'm guessing they aren't in business anymore.