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The major advantage is to corporations who have separate accounts for capital expenditures (the buy option) and current bills (the lease option). The two have different tax, depreciation, etc., rules.
A corporation might also choose to lease something like a car because it ensures they always have newish cars. If you buy a car you'll keep it for seven years and take a big hit when it comes to resale time. If you lease one, you make payments for three years then give it back.
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What is involved in automobile financing by banks and finance companies?
Under a lease arrangement, the financier keeps the automobile's title. The customer usually makes monthly payments and has an option to buy the vehicle at the end of the lease period.
What are the possibility's helping on this question?
The Harriston City Council is contemplating selling a building that is currently leased to Dr. Tarria Whitley, a local veterinarian, for $95,000.00. Whitley leases the building for $900.00 per month and is currently on a six year annually renewed lease with the option to buy the property at the close of the lease for $45,000.00. Using the present value formula and a 6% discount rate. 1) Calculate the total benefit of the leasing option and compare it with the option to sell the property
How large can a lease option be?
Lease Option Deals can help a Buyer buy and a Seller sell."How large can a lease option be?"It can be used for Residential or Commercial Properties. So the answer is the size can be infinite.If the Buyer wants to buy on an option to purchase, he generally has a lease agreement along with an option to purchase, stating how long the time period of the option is, and what the Future Purchase Price is going to be. A Memorandum of Option can protect the option once recorded at the County Court House, thus clouding the title.If the Seller wants to sell on an option to purchase, he generally offers a lease agreement along with an option to purchase, stating how long the time period of the option is, and what the Future Purchase Price (FPP) is going to be. The FPP can be tied to a Future Appraised Value, from an accredited appraiser. See http://en.wikipedia.org/wiki/Appraisal_Institute.Seller getting a New Home MortgageIf the former residence is now an Investment Rental Property, most mortgage brokers and direct lenders will accept 70% of the cash flow as income coming from the old residence (now an investment property), allowing the Seller to finance a new home mortgage. It is often possible to charge 2 payments, taxable rent income (say $600 per month) and an additional 30% as a non-refundable monthly option payment (non-taxable), to be subtracted from the Future Purchase Price if and when the option is exercised. This would effectively raise cash flow and enhance borrowing for the second home.Non-Refundable Option ConsiderationThe "down payment" or option consideration should be at least 3% of fair market value and non-refundable to compensate the Seller for taking the property off of the market. The 3% Option Consideration can be offered in the form of a Promissory Note.Taxation of Option ConsiderationAccording to Internal Revenue Code (IRC) Section 1234, all option consideration monies received are considered NON-TAXABLE until the option is EXERCISED or EXPIRED.Types of PropertiesMost popular are Single Family Residences (SFRs); also Single Use Commercial Properties, Mobile Homes and Condos utilize Lease Options.
What are the advantages of having an SPC Card?
The advantages of having an SPC Card are discounted purchases of different products and services. One can buy products at discounted prices at over 100 participating retailers.
A company leases office equipment with an original price of?
A company leases office equipment with an original price of $12,000 for $400 per month. The lease also has an option to buy. Fifty percent of the monthly lease price can be applied to the purchase price, up to 30% of the original sale price. If the company commits to purchase the equipment in less than 2 years, the original price will be reduced by 10%. How much will the company owe on the equipment if they buy it after 15 months?
If lease with option to purchase been foreclosure on what happens?
Sorry, the question is totally unclear. Do you want to buy a foreclosed property that had been lease optioned -OR- is it your lease-optioned property that is in foreclosure? Are you the property owner or are you the person trying to buy it via lease-option? Please re-word the question and re-submit it.
What is a leased to own a home?
"Lease to own", Is when you lease a house with the intention to buy it for a discounted price after the lease is over.
What do leasing a car means?
Leasing is essentially a long term rental with an option to buy at the end of the lease.
Where can you purchase fill in the blank lease option forms?
You can purchase them from a website that sells lease option forms. Some places may have them in the physical store for you to buy. Stores could also have the ship to store option that lets you order them and go pick your forms up at your nearest store.
What is a ground rent lease and can is it advantageous to buy one?
A ground rent lease is a regular payment from the owner of a building to the owner of the land on which the building sits. The advantages vary greatly depending on the market at the time and the length of the lease.
Can you purchase someones car when there lease is over?
No a lease is just a long term rental, it is owned by co he got it from but you can buy from them sometimes
Is it best to lease a property or buy it?
Leasing is the best option because you can use the profits to help pay the lease. Once you've bought it, you're looking a storage house if the business turns bad.
Is vehicle leasing an option for someone with poor credit?
There are many options to lease a vehicle if you have poor credit. You can always lease the car with a cosigner, if you can find one, and so you can lease the car even with poor credit. You can also get a long term rental from a car company such as Hertz. It will be more expensive, but is an option, if you don't want to buy a car.
Does "Homes for lease" mean the same as "Homes for rent"?
Homes to rent and homes to lease are very similar. Homes to rent you rent them for a week, a month or whatever you agree on withyour landlord. Homes for lease is pretty much the same but some lease to own has an option to buy the place you are renting.
How much do you put down on a lease to buy a home?
A lease does not buy a home.
What are the advantages that option trading has over other investments?
You can potentially make more money in the long run but you can also lose a lot of money.. people will do anything they can to get you to buy and lose your investment..
What is involved in automobile financing by banks and finance companies?
Under a lease arrangement, the financier keeps the automobile's title. The customer usually makes monthly payments and has an option to buy the vehicle at the end of the lease period.
