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December 2, 2008 7:22:28 PM CST

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Rent-to-Own Leases Help Fill Up Condos

Posted Sep 2, 08 9:04 PM CDT in Arts & Living,  Business 

(Newser) – The credit crisis landed the housing market on shaky ground, but condo developers are attracting cash-strapped buyers by offering them rent-to-own leases, the Boston Globe reports. The deal allows would-be homeowners to rebuild their credit and test out conditions, while developers make money on properties that otherwise would be empty. “It can be a real win-win,” says a real estate marketer.

The option typically is available in low-value areas, “so if you are a buyer, you want to make sure it’s a good piece of property,” an expert advises. Still, one non-profit director remains skeptical of the benefits for renters: “A lot of things can happen that will make them less likely to buy rather than more likely to buy.”

Source Boston Globe

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There can be pitfalls for potential rent-to-own buyers. "Some of the lower-income areas are being hammered, so if you are a buyer, make sure it's a good piece of property," said one expert.   (Index Stock)
Rent-to-own arrangements typically are offered in newly built condo developments in which units are not selling or are selling slowly.   (Index Stock)
Because of the tight credit market, developers are turning to rent-to-own leases to fill empty properties.   (Getty Images)
The "rent-to-own" arrangment "can be a real win-win," said one expert. "The real advantage to renters is they get to test it first."   (Index Stock)
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