Tuesday, September 29, 2020

Is "Rent-to-own" more like a scam than a convenience?

Wazzup Pilipinas!

Ano nga ba difference ng "Rent-To-Own" sa purely "Rent" a condo?

"The rent-to-own setup is vulnerable to scams and shady landlords. As the tenant, you take on most of the risk in a rent-to-own contract. You're the one paying more than necessary in rent each month with the promise that the owner will credit the amount toward the purchase price someday."

Deceiving ang "rent-to-own" term dahil hindi totally paying a monthly rent ang peg which sorts of makes it a scam of condo or house brokers or sellers ... dahil you are not really fully "renting-to-own" as expected.

It's more like they just made it easier for a buyer to pay for the .... let's say 20% bulk downpayment (which you can now pay within 6 months for example.. while already occupying the property)....and the rest is the usual scheme of getting a bank to approve your loan of the bigger part of the actual cost.

Real "rent-to-own" per se should be paying a monthly rental until you have completely paid for the property.

There should not be a third party like a bank that you have to owe a loan. Because banks require a lot of documents and qualifying criteria before they could approve your loan.

"Unlike traditional financing, rent-to-own is owner financed, which means that the owner is the one offering financing to buyers. As a result, lessees pay rent that is slightly above market rate. This is because a portion of it will go to the down payment for the property in the event that the lessee decides to purchase it. In such case, he or she must arrange for financing, either through a bank or other lending institution, to pay for the remaining balance."

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