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11/20/2019 5:07:11 PM
Posted: 10/26/2013 11:25:11 AM EST
I've seen this a few times. Is there any benefit to doing this versus renting and buying later, besides the fact that you are already in the house? My wife and I are looking at moving 1/2 way across the country, and we are not sure if we want to buy right away or rent and buy later.
Link Posted: 10/26/2013 11:28:08 AM EST
People who I see do this usually can't get traditional financing.

Here most land contracts have a clause that say if you miss a payment you lose everything you've paid already
Link Posted: 10/26/2013 11:28:49 AM EST
imo rent you may not like it and its easier to leave a rental than sell a house.

my brother is going through this now moved for a job and it didnt work out both the job and the area but he bought a house so hes kinda fucked.
Link Posted: 10/26/2013 11:36:46 AM EST
It works for folks who need the extra time to clear up credit issues or save for a down payment. Just be careful that the selling price isn't inflated, I've heard of sellers doing that in the hopes that the buyer still won't be able to come up with enough of a down payment to satisfy the lender at the end of the lease term.
Link Posted: 10/26/2013 11:44:17 AM EST
My parents are doing this right now with one of their tenants. Make sure to calculate it out so you do not get screwed if and when you decide to buy. One thing to think about is the financing. Factor in the fact that the interest rate when you may be ready to buy could be quite pricy. Also, be aware that by renting, and not owning, you are sacrificing a pretty stellar federal tax benefit, and therefore are paying quite a bit more than you would if you buy. Personally, I rent until ready to buy due to the cheaper up front price and being able to save a bit more that way. The lack of a write off is a deal breaker for me.
Link Posted: 10/26/2013 11:56:32 AM EST
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Originally Posted By arksniper:
My parents are doing this right now with one of their tenants. Make sure to calculate it out so you do not get screwed if and when you decide to buy. One thing to think about is the financing. Factor in the fact that the interest rate when you may be ready to buy could be quite pricy. Also, be aware that by renting, and not owning, you are sacrificing a pretty stellar federal tax benefit, and therefore are paying quite a bit more than you would if you buy. Personally, I rent until ready to buy due to the cheaper up front price and being able to save a bit more that way. The lack of a write off is a deal breaker for me.
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Ya we already own where we live now. We have a pretty good chunk of equity built up. We are just looking at options and I figured I would ask about this one, as I know nothing about it.
Link Posted: 10/26/2013 11:57:29 AM EST
they can always sell it out from under you down the road
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