What exactly is RENT TO OWN?
Rent to own is an option for buyers without enough cash to put out as down payment. Instead, you will
have to pay an additional amount on top of your rent to be used as down payment after a period of time
as indicated on the contract.
For example: A condominium is priced to rent for P12,000 per month. In Rent to Own you will pay (as
indicated on your contract) for example P18,000. The P6,000 is the used as credit to your down
payment. After 3 years you will have P216,000 in credits which will be used as down payment to make
the purchase of the same condo unit. You will then pay after 3 years a regular mortgage until contract
price has been paid.
Condominiums and houses nowadays offer rent to own option. This may or may not be the best choice
for you and your family. It is important to study the contract before you decide. Will you be allowed to
upgrade, have pets, how many people can live there, are there any other expense not mentioned.
In buying a home consider all angles and most importantly make sure you stick to the budget you have
planned.
By: Myla Pineda
Back to news
Would you like to share the page with your friends?
