When searching for a home, the typical debate is choosing to rent or to own a home. Each option offers its own set of advantages and disadvantages. It is important to weight the benefits of each over the short term and the long term to make the most educated decision. The prospective choice of a lease to purchase option can offer individuals the ability to realize the best of renting and owning a home.

When reviewing the characteristics of renting, several positive and negative attributes are evident. Monthly rent is typically lower than a mortgage payment unless a significant down payment is placed. This can afford tenants less monthly housing payment on a continual basis, freeing cash to apply towards savings. Continual upkeep and repair of the property is the responsibility of the owner instead of tenant, which also helps to avoid additional expenses.

Homeownership may bring slightly higher monthly housing payments, but also brings additional tax benefits and equity in the home. Homeownership also allows owners to make improvements to the home as time passes to enhance its livability instead of having to move to a new home.

A lease to purchase option may potentially lead to ownership and the benefits associated with homeownership. Mortgage payments help create equity in the home, which is equivalent to a savings or investment plan. During the lease to purchase period, tenants can feel a sense of ownership in the home brought about by pending ownership of the property.

A lease to purchase option can create the best of renting and owning a home, with some additional advantages. During the lease period, tenants are able to absorb the benefits of renting. During this same period, tenants can determine if the home meets their needs for the long term before taking ownership of the home. The purchase portion of a lease to purchase option can be a very simple and seamless process after living in the home for a period of time.

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