Did you know that with a lease option you control whether or not you buy the home? If the market and home prices drop, you can walk. If home values continue to climb, you get the first right of refusal and can capture those appreciation gains. That is why in this current market where home prices continue to rise, and yet, at the same time people feel a housing crash is coming, A lease with the option to buy can protect against your downside (listen to our interview on this subject at our podcast podcast link).
Supply chain shortages have made construction slow on new houses in late 2021 which means less will be available on the market. This may create a slight increase in demand for older homes, but winter months in most parts of the country mean a general slow in home purchases.
Additionally, some homeowners are in financial distress from 2020 or were unable to see their home and have chosen late 2021 to sell. This would increase older home sales which benefit buyers.
“Unsold homes rose 3.3% to 1.25 million from May to June this year” – National Association of Realtors
This would still be a great time for first-time homebuyers looking for a starter home in their desired city. Millennials also have a first buying opportunity as they are getting into the perfect years to buy a home.
“The real estate market in the first half of 2021 bore the surging demand from a millennial reshuffling…We saw this in the rental market with a 100% increase in the number of people moving to buy a home or change jobs” – Greg Toschi, CEO of Poplar Homes
Many news outlets and real estate professionals are predicting a home crash of some kind due to a variety of economic, supply chain, and social reasons. While we don’t like to make such large predictions, Home Equity Partner can still help you find the home you need no matter what happens.
Mortgage applications have dropped to an 18-month low” – Tamar Asken, real estate agent
This being said, we understand that a lot of people went through a lot in 2020 and early 2021. This may include losing a job, losing savings, starting a new business, or having a decreased credit score. No matter what happened, Home Equity Partner can help you find a home that meets your needs through a contract for deed or lease-to-own option.
With a moderately sized down-payment, we can purchase a home and let you save up over time and improve your credit to qualify for a traditional loan in two to five years.
“Many people struggle to buy their first home because they cannot qualify for a bank loan. We raise private capital to buy homes for people so that they can finally become a homeowner. Typically this is a 1-5 year bridge that allows you to act like a homeowner while you work to obtain a bank loan.” Home Equity Partner
Spring 2022 is expected to have a frenzy of home buyers which may make it difficult to find a home at a price that works for your budget. Locking in a good deal now means you can save money over the life of your lease option and future home loan.
Lease options give you the first right to buy your home with a traditional bank loan when the time is right for you based on a set schedule in the option. This means you can plan to get a loan 2-5 years out and save for a larger deposit along the way, automatically.
Home Equity Partners understand you have questions and you may contact us directly of find answers here: https://homeequitypartner.com/faq/