Rent to Own Property and its Major Advantages

Advantages of Rent to Own Property in the Philippines

Rent-to-own or RTO property is an alternative home solution for property finders rather than choosing to buy a property under traditional property loans. This type of property ownership gives the buyer or lessor a property to rent with an option to buy it in the coming period under an arrangement.

With the increasing demand for owning a safe and secure residential property a lot of developers are offering rent-to-own properties in the Philippines. Considering how the global pandemic has altered the lives of many Filipinos, many are looking at affordable home options which makes the RTO properties highly favored.

As a buyer or renter, it is important to understand what RTO property offers and to certainly know the perks of owning one at this present time of the pandemic.

Advantages of Owning a Rent to Own Property

Here are a few of the advantages of buying or owning a rent-to-own property in the country for you to understand how you might benefit from getting one.

Buy with Bad Credit

Several property finders and buyers in the country might have experienced loan decline or rejection from several reasons such as outstanding credit, lacking requirement, marital problems, etc. but whichever some of the most common reasons are the lack inability to meet the financial or income requirement.

On the other hand, buyers who are rejected to own a property through securing a loan from the bank can look and own for an RTO property available. Qualifying for an RTO property is easier compared to traditional properties for sale.

Over time, buyers can build a good credit standing when they opt to buy an RTO property. The credit scores will eventually be better sooner with an RTO property, and this can bring a better opportunity for the next property under loan application. 

Locked in Purchase Cost

Property finders nowadays are looking for more affordable property options because of the pandemic. Whereas developers are offering rent-to-own options to capture and take advantage of this demand. Hence, if you are also a property finder buying a rent-to-own property can be an advantage right now with a lot of developers offering minimal cash-out and other flexibility on financing arrangements.

Buying an RTO property can secure you with the current and conservative prices of properties because of the pandemic and you expect that when pandemic gradually becomes handy, prices will appreciate.

Grabbing the opportunity to own property during the pandemic can be a well-thought investment plan. Meanwhile, for an RTO property, you can buy the current price right now and lock that value until the time you are about to pay the contract price of the whole property.

Test Drive Before Buying

One of the main advantages of buying a rent-to-own property is the trial arrangement it can let you experience before fully deciding to buy the property itself. During the period you are renting out a property which you see possibilities of purchasing fully in the coming period you can easily see any problems arising inside the property or in the community.

You may find out some property issues such as technical ones which include problems with the sink and pipes, wall paints, low-quality furniture and appliances for fully furnished RTO properties, and other property or home nightmares.

Test Drive before Buying the Rent to Own Property
Test Drive before Buying the Rent to Own Property | Photo from

Aside from these, a property buyer will usually move out of his or her property because of the bad neighborhood. These involve the unhealthy relationship of neighbors, loud and foul neighbors, dirty and unsafe communities. 

Now, if any problem arises any investor or buyer can default to backing out from the contract. Thus, it can be a safe investment where you can easily withdraw rather than buying immediately a property for sale under traditional payment schemes. 

Move to as Good as a Permanent Address

Having a property, you can call yours is a comforting thought. It is where you can have the security of a place where you can be yourself. However, if you are only renting a place then your landlord can easily ask you to move out when the property has other uses for him or her.

Thus, signing up for an RTO property arrangement will give you the comfort of security because you might be renting now, but the property is more secured as you are also eyeing to purchase the property in the coming terms. Having said you will be more likely to settle down in a period compared to just renting out a place to stay without an option to buy the property.

Move in Lesser than Usual
Move in Lesser than Usual | Photo from

Moving in and out to a place is also not safe now with how the pandemic is gradually sweeping numbers of people globally. Adjusting to different places is also difficult and regular changes may also not be healthy if you also wish to build acquaintances with good neighbors.   

Pay Equity in the Long Run

Compared to renting out a property, signing to a rent-to-own property will allow you to not just throw your money away. Mainly, monthly rental fees for an RTO property include the purchase premium which will be deducted from the total contract price of the property you will be buying under the contract of the RTO.

The payments made will be providing a substantial amount that usually covers the down payment of the property for sale or rent.

Is Rent to Own Property Worth to Invest?

Yes. Find the best rent-to-own property offer from a reputable and trustworthy real estate developer. 

Rent to Own Property in the Philippines
Rent to Own Property in the Philippines | Photo from Francesca Tosolini in Unsplash

Rent-to-own properties are the solution for some markets of investors with shaky or irregular financial sources of income but will want to own their respective property or residence in the country.

For such types of property finders, an RTO property available provides them the best possible option to own a house they can afford and call their own. But what is important is to study the black and white of the contract and see to it that all terms and conditions are working for you.

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