The Benefits of Building Equity While Leasing: Wealth-Building for First Time Home Buyers
Homeownership is a cornerstone of wealth-building, but for many first time home buyers, traditional purchasing can feel financially daunting. Between high down payments, rigid mortgage terms, and unpredictable markets, the road to homeownership is filled with challenges. Fortunately, our lease to own home programs offer a new, accessible pathway, enabling buyers to begin building equity while leasing their ideal home.
At Burson Home Advisors, we believe that everyone deserves a chance to achieve financial growth through homeownership. In this blog, we’ll dive into the financial benefits of building equity while leasing, highlighting how our lease to own home programs are helping first time home buyers build wealth with flexibility and minimal risk.
The Power of Equity-Building: Why It Matters for First Time Home Buyers
Equity represents the portion of the home that the buyer actually owns—it’s the difference between the home’s market value and any debt or loan balance remaining. Equity grows over time, often through mortgage payments and home appreciation. This equity can eventually be leveraged for financial goals, like funding further investments, covering large expenses, or enhancing financial security.
For many first time home buyers, the lease-to-own model makes building equity a reality sooner. Unlike traditional rentals in Raleigh NC, where monthly payments offer no return on investment, lease-to-own buyers start accumulating equity from day one.
They gain a financial foothold without the need for a down payment or immediate mortgage approval, setting the stage for wealth-building while still renting.
Wealth-Building Through Home Appreciation: A Key Advantage of Lease-to-Own
One of the most compelling aspects of homeownership is the potential for home appreciation. Real estate values often increase over time, meaning a home purchased today may be worth significantly more in five to ten years. Traditional homeowners benefit from this appreciation, and our lease-to-own clients do too.
In a lease-to-own arrangement, the tenant-buyer begins building equity immediately, allowing them to benefit from any increase in the home’s value over time. For instance, consider a lease-to-own buyer who moves into a $400,000 home. Over the next three to five years, if the property appreciates by 10%, the home’s value would rise to $440,000. Through our program, that $40,000 increase in value directly contributes to their wealth, just as it would for a traditional homeowner.
This opportunity for wealth-building through appreciation is particularly beneficial for first time home buyers who may feel hesitant about committing to a mortgage in today’s volatile market. Our program provides a safe entry point into homeownership, allowing buyers to gain from rising property values without the immediate pressure of a mortgage.
Avoiding Common Financial Hurdles with Lease-to-Own
For first time home buyers, the biggest financial obstacles are often the down payment and mortgage qualifications. Traditional buying models typically require a down payment between 3.5% and 10% of the home’s value—amounting to thousands of dollars. For a $400,000 home, that’s $14,000 to $40,000 upfront, which can be prohibitive for many, especially young professionals and those with fluctuating incomes.
Our lease to own home programs are designed to eliminate these barriers. By offering a low entry cost and no immediate mortgage requirements, we make it possible for buyers to enter the housing market without the hefty down payment. Additionally, our program caters to self-employed professionals and others with non-traditional financial profiles, providing them the time they need to secure a mortgage while living in their future home.
Case Study: Sarah and Jason’s Journey to Homeownership
Sarah and Jason, a young couple in their early 30s, were eager to buy their first home in Raleigh’s booming market but faced a few initial challenges. Both self-employed, they found it difficult to save for a large down payment and qualify for a traditional mortgage, which required two years of seasoned tax returns demonstrating stable income—something they were still working on.
When they discovered Burson Home Advisors’ lease to own home programs, they saw an ideal path forward. Through one of our programs, Sarah and Jason were able to move into a $350,000 home in their preferred neighborhood with a stable, affordable payment that allowed them to focus on growing their business. They were relieved to know that as they leased, they would still benefit from any appreciation in their home’s value, which in Raleigh’s market, is expected to rise.
Flexibility with Financial Growth: Options to Buy, Cash Out, or Continue Leasing
Another key benefit of our lease to own home programs is flexibility. During the lease period—typically three to five years—buyers have the freedom to make decisions that align with their life goals. After the first 12 months, buyers have three choices:
- Purchase the Home: They can use the wealth they’ve built to complete the purchase, putting them in a strong financial position for long-term ownership.
- Cash Out: If life takes them in a different direction, they can cash out, taking the appreciation they’ve earned as they transition elsewhere.
- Continue Leasing: If they’re not ready to make a decision, they have the flexibility to keep leasing the home, knowing their investment is secure.
Lower Monthly Payments and Predictable Costs
Unlike rentals in Raleigh NC, which often increase annually, our lease to own home programs lock in a fixed monthly payment that remains the same year after year. This predictability offers peace of mind for first time home buyers while keeping payments below traditional mortgage rates. It’s an unprecedented benefit that’s changing the landscape of homeownership.
Major Maintenance and Repairs? We’ve Got You Covered
During the lease-to-own period, buyers enjoy the peace of mind that comes with knowing our team covers major maintenance and repairs. This maintenance coverage not only reduces financial risks but also offers a valuable learning experience, helping buyers feel confident and prepared for future homeownership.
Real Stories of Success: Building Wealth Through Lease-to-Own
From relocating professionals to local families searching for stability, we’ve helped countless clients turn their housing payments into wealth. Our flexible programs empower buyers to embrace homeownership at their own pace while reaping the benefits of equity-building from day one.
Lease to Own Homes: A No-Risk Investment for First Time Home Buyers
At Burson Home Advisors, we’re committed to making homeownership accessible and rewarding for first time home buyers. Our lease to own home programs provide a no-risk, wealth-building alternative to traditional renting, offering a flexible and financially sound pathway to homeownership.
