Rent-to-Own Strategy All Bark, No Bite

Northside Piers

The real estate climate of the last few years has left developers scrambling for ways to sell their investments. Hoping that rent-to-own programs would turn renters into buyers, buildings like Northside Piers in Williamsburg gave renters the option of applying a portion of their monthly payment toward the purchase of their condo. Sounds good in theory, but results weren’t what they’d hoped.

After all 10 apartments on Northside’s rent-to-own program were quickly snapped up after the program launch in the Spring of ’09, only two actually sold.

Typically rent-to-own rates are higher than straight rentals, as the potential buyer is getting the advantage of a predetermined price without plunking down a hefty downpayment. It seems in this market, the dream of owning wasn’t worth the premium though.

Despite poor response, The Latitude Riverdale and Greenpoint Lofts, to name a couple, are still offering rent-to-own programs. Hey, there’s no harm in trying.

Source: The Real Deal

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