We are going to lease a house...

iVillage Member
Registered: 10-01-2007
We are going to lease a house...
14
Wed, 12-10-2008 - 12:54pm

I am feeling a little overwelemed this week. So here goes.... We got the lease resign or not letter. Well we feel like we are throwing our money away from paying rent. Well they are raising the rent also so we decided to look around for homes.


Well we have been looking for over a year now but the rent raise just made us want to look more. So we found this lease to own home. Now the home will be about 120.00 more than rent but alittle over 500.00 will go towards a loan for that house.

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iVillage Member
Registered: 02-19-1998
Wed, 12-10-2008 - 1:38pm

It sounds perfect for your family! I don't know whether you can use some of the property taxes you pay to deduct from your taxes - but you might want to find out if there is a way to do that.


I think renting to own will be the way many people will do it now that the economy is so bad.

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iVillage Member
Registered: 10-01-2007
Wed, 12-10-2008 - 2:49pm

Okay so I'm happy someone responded. I think it sounds great..... So everything will be in there name until we get a traditional loan. Which is fine. The rent/mortage will be more but the money is going towards something.


Oh and another thing is we have a little trailer that is one bedroom with bath, kitchen, dining and living on the back of property that we thought about renting out if it is allowed in the contract, which I think if it is a lease, we can do that. But we will soon find out.....Friday we sign the papers and what not


:O Jess



iVillage Member
Registered: 06-04-2006
Wed, 12-10-2008 - 4:08pm

If I remember correctly, your DH is prior military, correct?

-Erika
iVillage Member
Registered: 08-01-2007
Wed, 12-10-2008 - 8:04pm

Just be careful and read the fine print. If you have someone who is more knowledgeable about real estate transactions, I would definately talk it over with them and have them read everything.


Did you make an offer on the house or did they just tell you the price. Is the price at market value or below?


Do you know how much you will be spending on utilities if this place is bigger than the rental?


What happens after 4 years if you don't have a good down payment or you can't get financing? Would the rent price and additional costs still be worth the money vs your current rental?


Just some questions. I'm an old school type gal.

iVillage Member
Registered: 10-01-2007
Thu, 12-11-2008 - 11:28am

Did you make an offer on the house or did they just tell you the price. Is the price at market value or below?


First they made an offer, then we made an offer. They met us half way which is what we wanted.


Do you know how much you will be spending on utilities if this place is bigger than the rental?


Okay the house has the energy efficent stove, frig, washer/dryer, windows. The rooms are bigger but we have budgeted more for that.


What happens after 4 years if you don't have a good down payment or you can't get financing? Would the rent price and additional costs still be worth the money vs your current rental? yes we would.... if they were renting it, it would be the same price except the insurance.


Plus we are going to rent out the little trailer hopefully...



iVillage Member
Registered: 03-27-2003
Thu, 12-11-2008 - 4:25pm

First, in your situation, I would consult a real estate attorney.


Do you know



Carrie
iVillage Member
Registered: 04-06-2003
Thu, 12-11-2008 - 4:42pm

Jess,


Sorry I didn't reply earlier, I have been on about 10 minutes in the past 10 days!


Anyway, I only have about 2 mintues, but I wanted to real quick say that I'd look at buying, even with the debt, if you can.

iVillage Member
Registered: 08-01-2007
Thu, 12-11-2008 - 8:34pm

Just one more thing to consider. Will the homeowners insurance cover the trailer and the renters? Does your city or county allow for 2 residences on one parcel of land that size? Are there utilities and sewer service for the trailer?


Just asking because you may not be able to rent out the trailer and therefore can not gain any rent monies.


There are and will be a lot of properties coming on the market in the near future. If your rent is too high, then shop for another rental so that you can be sure of your decision. This is a major step for you, your family and your finances (now and in the future).


In 1994, We bought

iVillage Member
Registered: 10-01-2007
Sat, 12-13-2008 - 4:48am

iVillage Member
Registered: 03-04-2007
Sat, 12-13-2008 - 11:11am
It sounds great, Jess, but I'd have an attorney check everything over just in case. That's something you should be able to get done for a few hundred dollars, and imho, it'd be worth every penny.

~Didi

Wife to Ron, Mommy to Will


baby


I have a blog!

~Didi

Wife to Ron, Mommy to Will


baby


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