Expert: Hans Weber, Licensed Broker Associate - 8/18/2008

Question
Hi, my husband and i would love to buy a home for our family but we do not have much down payment for now, we did invest all our money in our business. We were thinking to lease a home for two tears and than to buy it out, here in Los Angeles CA. What do you think is this a good idea?
Thank you Yana

Answer
Hello Yana,

Thank you for your question.

You could not pick a better time to buy a home that way!

Prices are down, inventory of available homes is way up, interest rates are low.  Sellers are anxious to find buyers for their homes.  The only problem is that not every house is available to buy this way.  Many people need the equity in their home to move on so occupied homes are probably out of the equation.

You should start looking at properties with a Realtor.  There are specific listings that may offer the lease to own option which can be found in the computer search of the local multiple listing service.  You can start with these and see if any meet your needs house wise. If you need to see more ask to see vacant homes, because the owners already have moved on to their next residence, whatever it may be.

Your Realtor can help you structure a lease/option, perhaps offering a higher than market monthly rent with the difference going towards your purchase price/downpayment.

Good luck with your search.

Hans