You might be asking yourself what all the fuss is about lease options. Well there are a few reasons why investors have been getting hot under the collar about them.
Now, i will list out the benefit of buying and selling on a Lease Option :
Benefits of buying on a lease option :
🚩 There is no need to get a mortgage. You can simply recycle the seller’s mortgage. This will speeds the whole process up and gets round the problem of lending being refused or delayed.
🚩 No deposit is required. It really is possible to buy a house for a RM!
🚩 Deals cannot be scuppered by a surveyor down-valuing a property.
🚩 You can give the seller a much better price for their property than with the traditional below market value purchase model and still make good money!
🚩 You can buy negative or little equity properties and still profit.
Benefits of selling on a lease option :
🚩 You will normally get an upfront option fee from your incoming buyer. This can range from a couple of thousand to tens of thousands of RM.
🚩 Your monthly cashflow is far higher than a traditional buy to let, typically about 20% higher. You can’t beat this for income investment property.
🚩 You can sell quicker and simply because you are making the property easier to buy.
🚩 You can sell to people who would not normally be able to get a mortgage such as self employed, people who are new to the country, people with bad credit records, and crucially, those who not yet have enough deposit.
🚩 Tenants and buyers will tend to do their own repairs and not call you in the middle of the night about a leaking tap.
🚩 Your buyer will generally be in there until they buy so you won’t have any voids.
🚩 Your tenant is going to own one day so is very unlikely to miss a rent payment.
🚩 When the tenants and buyer finally buys the property, then you will normally make a cash lump sum that known as the “back end profit“.
Read these benefit properly and try to buying and selling on a lease option, then you will know that it really can bring many benefit for you.