Everyone dreams of having a home they can call their own, be it a condominium unit or a house within the suburbs. But given the nature of real estate in the market today, it can be tricky for the average individual or couple who doesn’t make over a hundred thousand pesos monthly.
Thankfully, there are several ways they can invest their time and money into owning a home, either through Pag-IBIG loans, bank loans, or signing a rent-to-own agreement with another homeowner or developer.
What is rent-to-own?
Condo rent-to-own (RTO) is what it sets out to be— a way for interested people to try out living in a specific area while giving them the option to prolong their stay with the prospect of selling the home to them over time. Independent earners, young couples, and small families are usually the kinds of people who invest in condos this way. After all, it gives them lee-way to pay for the property over long periods without having to deal with the hassle of buying a multi-million peso condo in one go.
Meanwhile, the property owner will have an easier time selling their condo to interested people because RTO is more attractive to common folk than the traditional alternative.
But it’s not just normal property owners that are using this method. Known condominium developers like DMCI Homes are well-versed in Filipinos’ needs and would often bring up rent-to-own promos that benefit condo hunters in the country. These promos often come in with lock-in price contracts that shield clients from price increases should they decide to buy the unit themselves.
Now, if you’re curious as to the specifics of what rent-to-own can provide for you, then here are a couple of things to expect:
Cheaper than condo/apartment-renting, long-term
As mentioned, rent-to-own is the more affordable (but still expensive) option that interested property buyers can get into. Compared to renting an apartment, condo, or house without the RTO contract, you’ll be paying extra to live in a place you will never get to own.
If you can afford the usual 5-10% downpayment, you’ll likely have an easier time paying off the rest of the house within a decade or two. Otherwise, a bank loan might be required to get the condo you want within due time.