- How Much Money Is Needed To Invest In Rental Property?
- Should A Real Estate Investor Get An Agent’s License?
- 5 Big Factors That Affect The Costs Of Renovating Your Home
- SIBOR Hike – What You Can Do With Your Current Loan
- 6 Basic Don’ts Of Real Estate Negotiation Tactics
- Will New Condo Relaunches Trigger The Great Property Sale We Have All Been Waiting For?
- 10 Proximity Amenities That Add Value To Real Estate
- How To Get Personal Loans More Easily With Good Credit
Bargain Purchase Option
The property involved can be either personal property or real property. It can even be equipment and heavy machinery.
This is very similar to a lease-to-buy contract where sellers allow potential buyer to “try” the property, and only complete the purchase if it’s satisfactory and meets their expectations.
In some ways, hire purchase agreements which are common with factory and office equipment are very similar. It helps the buyers see if they could get a return on investment before taking the plunge.
However, the lease contracts containing bargain purchase options are seen by many as a form of seller-financing in disguise as the full picture of an exercised option can seem like a seller financing the buyer during the period of the lease.
When relevant authorities classify such transactions this way, there can be tax implications.
So do check with your accountant on this when filing taxes.