How to profit from property in a downward or stable market.

A lot of people ask me about making money when the market is either stable or even falling so I thought I’d give you a good strategy for that purpose this month.

Let’s look at one of my favourites. Lease options. This strategy is perfectly suited to the current environment.

What is a lease option? A lease option is a normal AST lease combined with an ‘option to buy’ contract between the landlord and the tenant. 

The option part of it is a simple one page agreement between the landlord and the tenant, giving the tenant the right (NOT the obligation) to buy the property from the landlord for a fixed price within a set period of time.

In return for this privilege the tenant not only pays an upfront option ‘premium’ she could also pay above market rent too. This is because the landlord is now tied into selling the property to the tenant and nobody else

Benefits to the landlord:

1. In most cases you will get a great tenant from day one who does not want to abuse your property or damage it – in fact she will treat it like her own home.

2. The tenant will spend her own money doing up the place because she wants to buy it eventually.

3. Lease option tenants rarely hassle you since it’s their home. In my experience they take care of minor repairs themselves.

Continued ..

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