Did you know that you can have your own home while renting? Find out how you can rent-to-own a house and lot near Calamba, Laguna.
What is a rent-to-own house and lot?
A rent-to-own arrangement allows a person the option of owning a leased property from its owner within a certain time frame. This simply implies that a buyer can rent a home with the possibility of purchasing it during the rental period or until the loan term expires.
How does rent-to-own a house work?
Both parties must identify the monthly rental, purchase date, sales price, and other clauses such as the interest rate at the outset of the agreement. A contract is drafted and signed once they have agreed on the conditions.
Rent-to-own, on the other hand, is owner financed, which means that the owner is the one providing financing to buyers. As a result, lessees pay a slightly higher rent than the market rate. This is because a portion of it will go toward the down payment for a rent-to-own house ang lot near Calamba, Laguna, for example, if the lessee decides to buy it. In this instance, he or she must arrange for financing to pay for the remaining sum, either through a bank or another financial institution. If the lessee decides to leave, the lessor keeps all the paid rent, which is his or her incentive for taking the home off the market while it was being rented.
In terms of the sales price, keep in mind that whatever price is specified in the contract is final and cannot be changed regardless of whether the property’s worth increases or decreases during the lease time. So, before you sign any deal, be sure you fully understand what you’re signing.
Is a rent-to-own house worth it?
Both parties benefit from this type of agreement. Buyers can purchase a property right away and have time to improve their credit. Sellers who have had their property on the market for a time can generate revenue to pay off their mortgage and property taxes.
Another advantage is that purchasers can “test drive” the home, with the option of walking away and looking for another property on or before the purchase date. However, because the sales price is already fixed, sellers suffer no loss if the lessee chooses not to purchase.
Find a rent-to-own house and lot near Calamba, Laguna and know your options with Elanvital Encalves. For more information, contact its sales at +63 9271440196.
