What are the rent-to-own condo tips for aspiring property owners?
- Secure a unit as early as possible
- Clarify responsibilities with the landlord
- Improve your credit score
- Stay committed to fulfilling the contract
- Pay the rent dutifully to avoid stress
These are trying times for tenants given the health, financial, and economic impact of the COVID-19 pandemic. Everyone was affected by the consequent crises and it was extremely challenging for tenants to remain financially stable while renting. If you are looking into buying from the best condo developers in the Philippines, this might be the perfect time to learn about rent-to-own condo tips as an alternative.
If you are a condo tenant, you probably relate to common renting issues such as the exhaustion from paying rent continuously with the unit never becoming yours, restrictions imposed by landlords, and uncertainties about the duration of your stay. Such concerns by tenants have made rent-to-own condos the more ideal arrangement for many.
By definition, a rent-to-own (RTO) condo involves an agreement wherein the buyer can rent the unit, with the intention of purchasing it at the end of the rental contract. The buyer and owner will still mutually agree regarding terms for monthly payment, purchase date, and purchase price. But essentially, this agreement ensures the future ownership of the condo unit while you are still renting it.
A rent-to-own condo is a great investment idea for aspiring property owners who need more time to work on their finances. With an affordable rent-to-own unit, you can easily move to the best places to live in the Philippines, work towards owning a home by getting a mortgage, and have that lifestyle you’ve always dreamed of (even during difficult times).
Are you an aspiring property owner looking for the best solutions for your future home? Continue reading on to learn about some of the best rent-to-own condo tips.
Secure A Unit as Early as Possible
As with long-term leasing contracts, a rent-to-own condo agreement will have an indicated sale price on a legally binding contract that is final and cannot be changed. If both parties set a purchase price at the initial contract signing, the condo seller cannot increase its price. This proves to be advantageous for you as a buyer because the unit will be on sale for less than its market value. Given that real estate properties are known for appreciating; it further enhances investment value.
Let’s say that you find a rent-to-own unit being offered for P4.7 million. The developer can present a 10+10+80 payment scheme. For a monthly amortization of about P20,000, you can immediately into the property. After 2 years of working towards fully paying the unit, you can reap the perks of increased market value.
Securing a unit and writing a contract as early as possible will get the most value for your money.
Clarify Responsibilities with The Landlord
Buying a rent-to-own condo means agreeing with your landlord regarding responsibilities in the unit. There is often a gray area when it comes to rent-to-own condo upkeep responsibilities given the contract’s complexity. So, make sure to clarify these and state them in the contract. These responsibilities can range from maintenance, repairs, to association dues and property taxes.
Improve Your Credit Score
Given the flexibility afforded by rent-to-own condos, you can use the time to improve your credit score. Whether it be for banks or third-party financial institutions — increasing credit score is crucial in getting a home in the Philippines as it dictates the ability to get a mortgage approved.
Most people find rent-to-own condo arrangements ideal as it gives them more time to get finances in order. It is one of the most cost-effective options for owning and investing in a property. You too can save more and improve your credit score with a rent-to-own condo.
Stay Committed to Fulfilling the Contract
Make sure you stay committed to fulfilling the contract when you decide on a rent-on-own scheme with the landlord. Every clause can be negotiated upon by both parties before signing the contract. If you intend to go through with buying the unit, it will be stipulated in the contract and you will have to make the purchase upon the agreed date. In the case you want to back out of purchasing the condo, you may have to forfeit any payment you have made so far.
Pay The Rent Dutifully to Avoid Stress
After signing the rent-to-own contract, remember to pay the rent dutifully and follow through on all your financial responsibilities. A rent-to-own condo is an investment you make for the sake of owning a property. This being said, you should find ways to pay rent dutifully to avoid stress leading up to the final purchase date. This can mean looking for ways to increase your income or getting rid of debts. Nonetheless, this proves to be worth it in the end when you have your own home.
Key Takeaway
If you’re an aspiring property owner, you might want to consider the 5 rent-to-own condo tips we have stated above. Despite the financial struggles from the pandemic during recent years, rent-to-own condos present an excellent and cost-effective opportunity to own a home.
Go from renting a property to owning one with rent-to-own condos from Megaworld Manila! If you have inquires about the Megaworld Manila rent-to-own projects, click here or call our customer services team at 8-241-8000/ +63 926 679 8277.
