You could look at like an option, but its more like a free option. For one, who's to say that the rent would be any higher than your current rent; for a comparable apartment, theoretically the rent should be the same. And two, if you excercise the option, you've basically lived for free for 6 months because all rent gets credited to closing.

In short, this is a great deal for potential buyers

Posted by: upandup at October 9, 2008 10:36 AM in response to Rent-to-Own on the Rise

I would go back and negotiate with the seller for a reduced purchase price. Perhaps split the difference . . . $19K off the original $380K. Alternatively, do some work and determine what you would offer for the condo today if you could start from scratch. In short, the seller would probably be crazy not to accept some discount, but if you love the apartment I wouldn't try to get to greedy.

I don't agree with lethacal's comment about the additional 10% down at closing being a deciding factor. Essentially, that is just a financing decision. You're either financing with equity (the additional 10% down) or with debt (a higher mortgage).

Posted by: upandup at October 7, 2008 12:26 PM in response to Front Page Forum: Walk Away from Downpayment?