Affordable Rent to Own House in Bacolod
Thinking of investing in a rent to own property? Read this first.
Unlike renting or buying, a rent to own is an arrangement allows a buyer to rent a home or a condo with the option to purchase the property within a time frame agreed upon by both buyer and seller.
What makes traditional financing channels such as banks and lending institutions different from the rent to own set up is that the owner of the property is the one offering to finance to the potential buyers; thus, the rental fees are higher than the going market rate. This is because a portion of that amount goes to the property down payment, should the lessee decide to buy the property. If the lessee opts to move somewhere else, he or she forfeits the down payments made.
A win-win arrangement
Rent to own houses is sought after as it offers a win-win solution for both buyer and seller. Cash-strapped buyers have the chance to buy a property at flexible terms and they can move in right away. Sellers, especially those with houses or condos that have been in the market for a while, are able to generate income to cover for mortgage and taxes.
Pros and cons of rent to own
Like any financing option, the rent to own arrangement has its advantages and disadvantages.
Because rent to own transactions can be complicated (with locked-in rates and other things to consider, it's easy to get lost amidst the nitty-gritty details), it's best to sit down with a seasoned real estate attorney to make sure you understand the terms of the contract and that these are to your best interest, whether you're a buyer or a seller.
There are no limits to what terms you could include in the contract. Aside from the standard clauses on monthly rental payments, purchase date, and selling price, both buyer and seller can draw up rules regarding pets, the number of tenants allowed and property maintenance.
Keeping these in mind will go a long way in preventing disputes in the future.
Rent to own houses is available for property seekers in Bacolod City. A one-bedroom, 30 square meter home is at P840,000 while a 46 square meter, a two-bedroom bungalow can be purchased for P1.1 million - ideal for couples planning to start a family. Two-storey, three-bedroom properties are likewise available.
Visit Lamudi's website to check rent-to-own properties in Bacolod City; there are options for every life stage (and budget) you're in.
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