Rental with purchase option in real estate

In the real estate field, the LOA (lease with purchase option) is a new way to buy or sell your property. You first rent the property before becoming the owner and part of the rent paid is deducted from the sale price. This gives you the opportunity to build up a contribution or savings, but also to test your property before buying it and make sure that the transaction corresponds to the one you want. Some explanations with Directe Location, agency located in Bordeaux.

The advantages of the LOA

The advantage for the buyer is to be able to test his property before buying it, to make sure that the transaction is well-founded and to verify that the property corresponds to his expectations. It is also a way of projecting oneself, not over 25 or 30 years, but exclusively over 3 or 4 years with the possibility or not to cancel this purchase option. According to the agency Directe Location located in Talence, the other advantage for the buyer is the fact of building up savings through the rents paid since 30 to 40% of these rents will constitute the contribution for the purpose of acquiring the property.

The LOA compared to traditional acquisition

Renting with a purchase option is an alternative to renting and purchasing real estate since there is no additional cost to be in this configuration. It is even more interesting to be in a rental with purchase option when you are in a perspective of willingness to purchase.

Moreover, it is more interesting to rent with a purchase option than in a classic acquisition. Unlike a classic rental where 100% of the rent is at a loss, with a rental with purchase option you save about 40% of your rent. For example, on a rent of 1000 euros, you will save about 400 euros every month. That’s 4600 euros per year. This is a big advantage compared to a classic rental.

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