Renting with an option to buy
Leasing your property with an option-to-buy clause inserted is a particular type of purchase which is gaining popularity. It is usually called real estate rental with option to buy, or rental-homeowner.
What is the principle of this purchase type?
The real estate with an option to buy is a specific type of lease: the tenant has an option that allows him to buy the housing at the end of the lease. It is often offered in social housing. If it is also possible in private transactions, it is rarely put forward despite its many benefits.
At what price?
The purchase price is usually fixed at the signing of the contract. No way of it going the way of the ground rent scandal. The transaction is secure. The future buyer has the status of tenancy throughout the term of the lease and becomes the owner at the end of the lease when he expresses the desire to lift the option.
It gives potential tenants the chance to become a tenant of his home before becoming the owner. In the least, it gives potential tenants the assurance that there wouldn't be any rent-doubling situation such as what we have with the ground rent scandal.
It offers a simplified rental – you can test before buying. This is what everyone does when they buy pants or shoes. Rental with option to buy is common in many areas, such as the automobile. When you purchase anything, you have the option to change your mind once the package is received.
Real estate is the only area that escapes the phenomenon. Once the sales contract is signed, there is no way to turn around. What if the first night in your new home is a disaster? How about if the home seller did not keep to his promises? The real estate with the option to buy could avoid these unpleasant surprises.