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alabala

Leases With An Option To Buy In!

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I am surprised that the EA in UK haven’t been engaged in similar practises yet, seem that US EA are way ahead in the game, what a marketing machine!!!

Is It Not Nifty?

http://www.madison.com/wsj/home/biz/index.php?ntid=200453

The slow market has prompted developers such as Joe Krupp, who built Kennedy Point condominiums on Winnebago Street, to offer more buyer incentives, such as leases with an option to buy in, which some rent is credited toward a down payment. Kennedy Point had 10 of 42 units sold by mid-June.

"We have no shortage of traffic and interested buyers going through our projects," Krupp said. "For some reason, they're just not pulling the trigger."

He said the leases allow prospective buyers to try out the condominiums before they sign purchase contracts.

Chuck Elliott of Elliott Construction, who has 10 condo projects under way, including three each in Madison and Oregon, also plans to rent some of the units with an option to buy.

Apart from the fact that you or your Family can get emotionally attached, there is a good side of “rent before you buy”, no contract to purchase the place, and I guess it’s fair - when you can get better idea of the neighbourhood and the place as a whole before getting stuck with it.

The only things is that they are trying to use our psyche again and again, especially the Women and the family part bit, once there is a real attachment build and a feeling of ‘genuine closeness’ to this place is formed, unintentionally you would be forced to keep it.

There is nothing that can save you from arguing with your woman that you should never own this place, and I bet these places are quite nice assuming that they need to attract people and also getting them into buying the property, what a marketing coup this could be.

Edited by alabala

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I am surprised that the EA in UK haven’t been engaged in similar practises yet, seem that US EA are way ahead in the game, what a marketing machine!!!

Is It Not Nifty?

http://www.madison.com/wsj/home/biz/index.php?ntid=200453

Apart from the fact that you or your Family can get emotionally attached, there is a good side of “rent before you buy”, no contract to purchase the place, and I guess it’s fair - when you can get better idea of the neighbourhood and the place as a whole before getting stuck with it.

The only things is that they are trying to use our psyche again and again, especially the Women and the family part bit, once there is a real attachment build and a feeling of ‘genuine closeness’ to this place is formed, unintentionally you would be forced to keep it.

There is nothing that can save you from arguing with your woman that you should never own this place, and I bet these places are quite nice assuming that they need to attract people and also getting them into buying the property, what a marketing coup this could be.

This sort of thing is reasonably common in the US and Australia. Depending on the structure and local laws, it is called a mortgage wrap, or a lease option, under the general banner of "vendor finance"

There is a great danger for the lessee/buyer. If the vendor goes bankrupt, they lose all "equity" they have paid into the scheme, it just disappears and you have no recourse.

An unacceptable risk IMO

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