Lease Options to retain Rent Assistance

From what I know about LO is that you cannot claim FHOG, because if you try to claim FHOG you are selling the property, and because you are selling your client cannot get Rent Assistance, while with LO’s you are not selling, rather leasing so you can claim Rent Assis. but not FHOG.

Rgds.
Lucifer_au

Wallflower, you are paying say $ 200 per week
instead of say $ 150-00.

The difference is partly paying a higher interest rate and partly a bit of repaying the principle.

If I were you I would be more concerned about myself. Is it worth it, what difference does it make to YOU if you stay put or if you make an arrangement to eventually own your own home.

It may be a bit hard to see as the debt is a lot of money and therefore takes a considerable time (20-30 years ?) to repay.

All I know is that if the rent continues to increase over the years you would soon be paying $ 200 per week anyway in rent.

It doesn’t put any money into my pocket whichever way you jump but it is certainly worthwhile to give it some serious consideration.

Pisces

A lease option is just that, a right to buy. It isn’t a contract to purchase until you exercise the option by telling the person who issued the option ‘I now want to purchase the property on the conditions described in the option.’

At that point you have created a binding contract.

I guess you can see it as if you are saving money whilst you are renting. That part of the rent which is more than the normal rent represents your saving which will be put towards the purchase – if and when you decide to turn the option into a contract.

In the meantime you are obligated to continue leasing the property and in the event you break that lease you will lose your savings (unless there is a condition in the agreement to the contrary).

Pisces

>>However, this may open you (and your client) up to attack by the authorities if they make a decision that the rental assistance monies were to be only for rent and not to assist in purchase. <<

I see it in the light of someone saving towards an eventual purchase.

Even the government eventually wins as that person eventually will get off the treadmill of getting rent assistance.

If one compares what someone who is saving part of his money via a lease option does to what someone else does who spends ‘all his money’ instead of setting something aside towards an eventual purchase.

BTW, I use the term ‘all his money’ cautiously because the person on Social Security doesn’t receive a whole lot of money. It is a bare existence.

Pisces