Quote:
Originally Posted by ken0042
Isn't the sale price pre-determined? In that case, if the market goes up, the tenant wins. If the agreed upon price is $400k, and then after 3 years the house is worth $500k, they would be ahead.
However I do agree that in many cases it is a form of predatory financing.
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You're right. It'd have to be an absolutely huge boom for that to occur. The fixed sale price is very generous towards us, factoring in an average appreciation rate of 4.6% per year over 3 years.
I would consider that to be the win-win situation, and would be ecstatic if that actually occurred.