So you have wanted to buy a house since long? Is your financial status not permitting you to go ahead and achieve your dream? You do not have to worry any longer for there are alternative ways to solve your problem and you can end up being in your own house in a matter of two to three years. You must be very eager to learn more about this right away. Firstly, in the current economic scenario, you should understand that real estate market is not faring really well.

So, most of the owners who are willing to sell their property are unable to do so because not many takers are there. This is where you stand your chance. Even though you do not have sufficient funds to buy the home right away, you can choose to pay some initial deposit towards the home and sign an agreement that will last for about 2 lease years.

This duration might give you all the space to again stabilize your finances and finally end up buying the home. So now that you have realized that you can buy a home if not today at least in the near future, which among the two options are you going to choose? Lease purchase or Lease option? You may think that both are the same. But they are not. It is just that people seem to confuse both terms to be the same and start using them alternatively.

Lease purchase:

Here, the owner of the house and you (to-be-tenant) get into a mutual understanding about the selling and buying of the home. You as a tenant will have to abide by a set of rules that are clearly stated in the lease purchase agreement. The owner has to stick to the price that he has already quoted in the agreement and also the duration of the lease and monthly rental. Often, in this scheme, the monthly rental is beyond the normal market rental rate. The excess amount you are paying goes to the principle amount of the house price.

Lease option:

It is similar to lease purchase but not the same as it. In this, you need to sign an agreement with the client that lasts for a predetermined duration. Here, you can either choose to buy the property or deny it if you are not interested after the period expires. You will be given back your initial deposit.

From these two options, you can choose one that fits you well and end up purchasing your dream home without any hassles whatsoever.

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