Every man dreams of his own home but often the increasing price of real estate and the difficulty to obtain a home loan works as a wake up call. However, for those of us who might find it difficult to buy a house there is always a second way of owning one without buying. Yes, I am talking of lease. Lease is probably one of the easiest ways to get a house of your own without buying it and in most cases the financial burden is relatively low. Having said that, we also need to understand that the situation varies from person to person, while leasing is one of the easiest and most convenient options for most people, there are other people who find it beneficial to buy a home.
A leasing contract grants the borrower to a real estate property. The financial institution either owns the property or purchases it and remains the worthy owner of it till the borrower decides to purchase it. In the meantime the monthly produced payment works exactly like rent payments but when the borrower decides to purchase the real estate property, these payments become a part of the purchase price.
In terms of monthly payments leasing is often more appropriate and affordable compared to replaying a home loan. Lease with option to buy allows the buyer to decide whether he wants to buy the property by paying a lump sum at the end of the contract period or if he would like to let it go. This method is actually financially easier for owning a house compared to buying it outright with a mortgage liability.
Besides the financial advantages, leasing is also suitable for people who would like to move around and are not sure if they are going to stay at the same place for ever. They can easily leave the property at the end of their lease period or continue to retain it if they decide to stay back. Also, leasing provides a trial run for the property. If you stay at home under lease you get to know it and understand if the property suits you, if it doesn't you can let it go at the end of lease period and if you like it you can buy it. However, when you buy a property outright, you don't get the option to use it and understand the advantages and disadvantages of it.
Lease with option to buy is often a good protection against inflation. If you cannot afford to buy a home now you can always take it on a lease with option to buy. In this type of agreement the price of the property is decided and fixed, so even if you decide to buy the property at the end of the property you pay the price decided at the time of the contract and not really the current price that would most like inflate to grate extent during the lease period.
With all these options more and more people are going for lease and lease with option to buy to get their own homes rather than buying them outright and shouldering the mortgage liability. With the changing scenario in the real estate market even luxury homes and townhomes are also available for lease and it makes life so much easier for all of us who dream to own a home of our own.
