If you’re an investor with tenants inquiring about a potential lease option for the property, there is an opportunity available to them. Investment in lease option properties has been on the rise due to the fluctuating interest rates. Consequently, it can be tough to locate buyers and exit such properties. Furthermore, with rising house prices it is becoming increasingly difficult for people to become homeowners.
Investment property owners in Utah have a lot of methods to consider when it comes to disposing of their property, and lease options present various advantages that are worth considering. No matter why you’re exploring this subject, these benefits should not be overlooked. Dig into this article and learn why real estate investors in Utah should consider lease options as one of their investment strategies.
Tax Benefits
Everyone loves to save money on their investments. So why not get in touch with a tax advisor to know more about the tax benefits for real estate investors who offer lease options in Utah. This could be a great opportunity to benefit from lower taxes.
Eliminate Holding Costs
Even though you won’t get the entire profits of your sale right away, your purchaser still has to pay for regular holding costs on a monthly basis. Additionally, they may be held accountable for keeping up with repairs and maintenance as if they were the official owners already. Though you may have to wait for a while, once you own the title, the buyers have no choice but to exercise their option. Historically, real estate investors have seen their equity in property increase over time so they risk nothing by considering lease options. Moreover, given the current market conditions in Utah, now is a great time to make use of this strategy.
Keeping Upfront Down
When buyers sign the agreement, they’ll pay an initial fee for the right to purchase the property. This is known as option money and will be paid upfront. If you choose to invest in real estate lease options, this is an additional perk: You’ll be able to keep the option money even if the deal isn’t finalized. This makes investing in Utah an attractive proposition. Lease options can be an attractive option for both landlords & tenants. By placing a portion of the rent into escrow, you could use it towards the down payment when ready to purchase. For those buyers that have difficulty procuring funds for a down payment, rent credit can act as an attractive incentive. This mechanism allows them to save and accumulate funds, and if in the event they are unable to exercise the option to buy the property, these funds will be returned back to them.
Sales Price
When you choose to lease, you have two options: agree on a higher final sales price, based on predictive analysis or wait until the end of the agreement and decide then. Prices set after the contract can prove to be disadvantageous to sellers as market values may rise significantly, thereby leading to missed out profits. Buyers tend to prefer prices that are pre-determined and may even be willing to pay more for the privilege of homeownership prior to actual purchasing. Investing in lease options in Utah is an excellent choice for real estate investors as it can significantly boost their profits. Therefore, this should be considered seriously to maximize returns and benefit from the current market conditions.
Get in touch with one of our expert home buyers at Rent To Own Homes In Utah - Northern Realty to discover the advantages of lease options when investing in Utah real estate. With IdealHomeForYou.com, you can trust us to be totally transparent. Our home buyers can provide you with insights into the present market value of your property. They’ll let you know how much money you could make by either going ahead with a sale or entering into a lease option arrangement. Rent To Own Homes In Utah - Northern Realty can provide you with a third option to sell your investment property, helping you to save valuable time, energy and finances. You might be taken aback by how much this can benefit you. At Rent To Own Homes In Utah - Northern Realty, we are focused on providing assistance to our neighbors in Utah to help them meet their demands and gain the most from their investments. If you need advice, we invite you to call us at (801) 447-1700 – our team would love to hear from you!