Lease To Own at 1111 East Pike? Yes and No.
Did anyone else notice that 1111 East Pike had unsold units listed on Craigslist for rent? Two of the 10 remaining unsold units were in fact offered as lease-to-own last Friday. And, less than a week later both condos are leased. So, yes you can lease to own at 1111, but not any longer because the two units are already gone!
In following up with Steve at Realogics, here’s what I found out:
- #403, 650 sq ft, rents for $1900/month
- #301, 800 sq ft, rents for $1700/month
- Condo purchase price is established up front
- Both condos are leased for 6 months, with first right to accept established price
- A portion of the monthly rent ($500/mo) goes towards closing costs
And if you are like me, you are wondering why someone would want to lease-to-own rather than buy outright. Turns out, there are several reasons why:
- It’s a chance to live in a new and nicer property that wouldn’t normally be offered for rent
- The potential buyer can lock in today’s rate, but wait 6 months to decide to buy
- Just like you might try on clothes or test drive a car, this gives the buyer a chance to evaluate the property
- If the buyer doesn’t quite have enough to cover the initial costs of a purchase, lease-to-own ensures they don’t lose the opportunity to buy the condo they want
And there’s benefit for the seller as well since they have an interested buyer living in the condo, and once the buyer has their stuff moved in…well, who really wants to move twice in 6 months, right?
The only thing I forgot to ask was – if they lease to own, do they still get that Smart Car option?