The best choice for temporary investment in realty is leasing a property. The major benefit in leasing is that, it helps you to possess a property with precise profit without owning it.
Owning a lease property involves a blend of 2 main strategies. One is where the proprietor clinches the deal with the buyer for a certain period of time and the other is that the proprietor does not have the authority to sell or bring another person into the house for stay.
Besides, the deal signifies that the person who has taken for lease also have the right to buy the property. This is possible, when the tenant desires and the owner is willing to sell it at the price that was fixed. The mandatory rule of the contract is that, you have to pay till the end of the lease and it can be acquired only after the completion of your lease. Moreover, if the property has a deal of sub leasing it to another person, then it has a seamless profit on the investment you made. If the property has the “right of assignment” the investor can offer it for a quicker profit.
Get to know the guidelines to get a lease property:
Square Deal: The sum of money paid by the buyer will be as an investment for the equity growth of the home. A precise part of the payment gets converted as a down payment for the selling price.
Choice of Deposit: The money you deposit as rent as per the equity will be credited fully when the person buys the home.
More Profit with Less Payment: When purchasing a house, you need to give an average of 3.5 % of the price as down payment and also closing payment. But while leasing a property only the usual payment has to be made in the form of rents and deposits.
Suppleness in Requirements: Limitations may vary according to the seller but in a flexible way in forms of credit etc. Proper and regular payment of rents can help you get the property as your own.
Mastery of the House: Once the buyer gets the house, it comes under his authority during his lease period. This will give you the freedom to improvise the home as you desire and also explore the in and out of the house.
Tax Free Option: Since the property acquired is not owned, you need not worry about paying tax up front and so on. Due to this option the buyer has enough stint to save money to get the house as his own when the lease comes to an end.
Cut on Maintenance Cost: Last but not the least, the maintenance plays a major role while leasing a house. Make sure that the property has less maintenance charge that does not exceed your budget, so that you can have a hassle free stay during the time of your lease.
Inspite of drawbacks, the choice of leasing a property remains good when it comes to investment with low risk. It is also a better option to have control over a property which is not your own, to have constant cash flow and profits for a long period.