Congrats, you’ve decided on new home construction! Most buyers correlate new home construction with building a home from scratch. However, the more research you conduct, the more new construction jargon you run into, and the more complex your decision becomes.
That jargon includes leaseback homes. Just like building a home from scratch, leaseback homes are unique, pre-built, brand-new construction homes. They also come with distinctive benefits that you may find more suitable than building from the ground up.
A leaseback home, also known as a “holdover,” is typically used as an investment option, where a buyer purchases a model home, and the builder agrees to lease it back for some period of time. At Maronda, this timetable is often 12 to 24 months (with the option to extend), so the property can be used as a model home.
The primary purpose of purchasing a leaseback home is to utilize the property as a long-term investment. When purchasing a leaseback, you would own the home but not live in it until the fixed amount of time agreed upon is up. Maronda would be “renting out” your home during this time, paying you a fixed monthly rate to use as a model home.
Depending on the financials of your situation, sometimes the mortgage on your model home will be covered by the rental income received from Maronda during the leaseback period. This means the return on your investment would be almost immediate.
Furthermore, you lock in your interest rate when you purchase a model home. Upon the leaseback termination, you can keep the home as a rental property to continue receiving that monthly rental income or choose to move in yourself!
Model homes showcase everything that’s new and exciting about homeownership: the most elegant floor plan fully equipped with upgraded features, built in the perfect location on the most sought-after homesite, and beautiful staging with trendy, brand new furniture.
As one of the most compelling selling points for any buyer, you can guarantee that Maronda will maintain your home in pristine condition despite the length of your lease. Model homes are, and always will be, 100% move-in ready upon completion of the lease terms!
If you’re looking for an investment with little to no maintenance or responsibility, choosing a leaseback home may be the right choice for you.
At Maronda, we offer leaseback homes across all divisions. You can find available leaseback homes by visiting our website, selecting a community, and clicking on the “model homes” hamburger menu tab. Scroll through until you see a green banner in the top left-hand corner of the model homes stating “available for leaseback.”