Condominiums are increasingly in demand. People are drawn to invest in such properties because of the convenience and high quality of life they offer, as well as the superb facilities that go along with them.
Investing in real estate is a significant step forward. Several leasable office buildings have been constructed, as well as residential towers, most of which are in commercial areas. There are a lot of condos for sale, pre-selling condos, and ready for occupancy condo properties in the market with different types of units. These condo high-rises are highly sought after by the working class, especially young urban professionals, due to their prime positions.
Real estate is without a doubt one of the best investments you can make and rent-to-own can be an excellent option for those who want to buy a condominium but don't have a bad credit score or don’t have enough funds for a down payment. At the same time, it is also beneficial for condominium owners who want an additional stream of income from their property.
A rent-to-own arrangement can be confusing for both buyers and sellers, so this guide will explain how it works and the benefits for both parties.
What is a Rent-to-Own Contract?
Rent-to-own, also known as lease-to-own, allows a tenant to purchase the leased property from its owner at the end of a certain period. It is simply renting a property with the option to purchase and own it at any time throughout the rental period or until the loan is paid off.
How Does the Rent-to-own Contract Work in the Philippines?
When entering a rent-to-own agreement, both parties will have to agree on the monthly rental amount as well as the purchase date, price, and any other terms, including the interest rate. By signing the contract, both parties agree to the conditions.
The process basically involves renting a property from the owner for a length of time and then giving them an option to buy the house. The agreement between the seller and buyer is usually for a period of one to three years. Purchasers pay monthly rent plus an option fee and a rent premium, all of which reduce the down payment for the property.
It's similar to a car lease in that you make a down payment, then enjoy the car as you complete the agreed monthly payments. Rent-to-own, however, also gives buyers the option of not purchasing the home after the term.
Benefits of Rent-to-own Condominium to Buyers
You will have your own home
Some people feel uneasy about their monthly payments since they're paying money on a property that they don't own completely. Some renters worry because they can easily be evicted by the owner of the property.
Payment conditions such as "rent to own" sound like a reasonable compromise. There's a sense of pride and ownership in knowing that your rent money is being invested in something you'll someday own and profit from.
Also, by buying condominiums through a rent-to-own scheme, you are securing long-term investment in real estate that you can reap the benefits of. As with other investments, you may have to put up a significant sum of money now, but in the long run, you will be able to claim ownership of something of worth. It gives you a sense of security and stability.
You will enjoy the condo lifestyle
Having being located near the city's core, condos often come with a host of amenities and privileges. Condominiums are strategically located, meaning, condo living means benign near the vicinity of employment and business centers, healthcare providers, and entertainment hotspot. Additionally, a condo's facilities often include things like swimming pools, gyms, spas, and saunas, which you can also enjoy.
Once you have moved in, you will have complete control over the property and will be able to make changes and upgrades as needed. You can improve the place and choose the condo design that suits your personality and lifestyle.
You will eventually have the flexibility to re-sell
Once you have completed the required monthly payment and the condo is yours to own, you'll be able to sell your property quickly and for a profit. The pace of appreciation varies by location, but condos are more likely to see a greater increase in value, especially because they are located in the heart of commercial activities. If in the future, you decided to move out again, you can turn your condo into a rental pad, which can give you a revenue stream. Hence, someday, you will be able to make a good return on investment.
Benefits of Rent-to-own Condominium to Sellers
You will generate income
Condos are more inexpensive than other types of housing. For this reason, condo investments are particularly suitable for first-time home purchasers. It's also important to keep in mind that the value of real estate, including condominiums, increases with time, if you decide to leave temporarily or permanently, you may transform them into money-making investments.
The tenant will take care of the property
The tenant is going to stay in the condo for a long term, hence, he or she will more likely take good care of the property. The tenant will maintain it as if it were their own because, at some point, it very well maybe.
There’s nothing to lose
If at the end of the agreement, the potential buyer decides not to buy the house, the seller has nothing to lose; apart from gaining income from the rent, the seller earns another chance to sell the house at a much higher price depending on the market conditions. On the other hand, if the potential buyer decides to buy the house, the only thing the seller will lose is the part of the rent that’s credited to the buyer. At the end of the deal, the seller will gain income; improve his credit; and sell his home even in a slow-moving market.
There is no need to choose between purchasing and renting to own a condo because you may benefit from both options. Rent-to-own contracts are a solution that will help future condo owners and sellers meet their goals.
Vista Residences is the condominium arm of the country’s largest homebuilder, Vista Land & Lifescapes, Inc. that offers ready for occupancy and pre-selling condominium projects in Manila, Makati, Mandaluyong, Quezon City, Ortigas, Baguio, Cebu, and CDO that are strategically located within major cities, in close proximity to premium universities, transit oriented locations and developed business districts.
At Vista Residences, unit owners can take advantage of the property’s centrality. The properties of Vista Residences are strategically located near the country’s premium universities and CBDs, making them an attractive investment for both local and foreign investors.
Vista Residences has ready for occupancy condo projects in Manila such as Vista Taft, Vista Heights, Vista GL Taft, 878 Espana, and Crown Tower University Belt. It also has pre-selling projects in the said area which include Vista Recto, Plumeria Heights, Tennyson Heights, Bradbury Heights, Sky Arts Manila, and Kizuna Heights.
Meanwhile, its ready for occupancy projects in Quezon City include Wil Tower, the Symphony Towers, Pine Crest, and Vista 309 Katipunan. It also has pre selling condo projects in the said city such as Hawthorne Heights and Vista Pointe.
Vista Residences offers a condo property situated in major locations in Metro Manila – Makati City, Ortigas, and Mandaluyong City. If you are looking for a condominium where you can easily move in or a property that you can invest in, Vista Residences has ready for occupancy condo units and pre-selling condo projects. Salcedo Square in Salcedo Village Makati, Laureano Di Trevi in Chino Rocess Makati, The Currency and The Spectrum in Ortigas Central Business District Pasig City and Vista Shaw in Shaw boulevard, Mandaluyong City.
To continue its mission in providing condominium homes for Filipinos and investors, Vista Residences is now offering a premium condo living in the other areas away from Metro Manila. You can experience a warm and relax condo vibe in its condo in Baguio – Pinehill, Canyon Hill, and Brenthill. Now in the south, Vista Residences has Suarez Residences, a pre-selling condo in Cebu; and The Loop, a ready for occupancy condo in Cagayan De Oro.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.