Rent to Own

[theveed]

May alam ba kayo?

Kinda feel like money is going down the drain paying rent every month with nothing in return other than immediate need for shelter hehe.

[boybi]

how about buying a house through bank financing?

[Isuzoom]

For short term mas ok if rent.. but if sure ka na sa house better buy through bank housing loan than paying rent every month and get nothing in return.

[theveed]

Bigat kasi yung DP hehe...

Question... Let's assume there's this prospect house you're eyeing, let's say 2.5M sya.

Pag owner yung nagbebenta, pano yung set up nun? How do you go about financing etc?

Assuming 20% DP, is it as easy as paying 500G up front to the bank, then monthly na yung balance (+ interest, of course)?

Kasi when I look at financing from condo/townhouse flyers, ang gulo ng mga systems nila, deceiving.

Like the 8k/mo SOHO thing, there are "balloon payments" every year, in order to get to that payment, you're actually paying the 8K/mo + whatever the amount the balloon payment is /12... Mga 25K or more ang actual payment mo.

Tapos pag dating sa 65th month nila dun pa papasok yung natitirang lumpsum of over 150K or something.

[Isuzoom]

sa 2.5M, bank will check the commercial value of the real estate if 2.5M talaga. If ok sila I think they will lend you 60% of the value. Depende lang yan sa bank.

[theveed]

ah so mga 40% pala usually... damn, need to save up more hehehe.

[odell]

ala ko un mga condo now sa eastwood.. and un bago sa may west ave.. rent to own..

[qman]

conservative ang mga appraisal ng mga bank.

halimbawa TCP nya eh 2.5M then appraise ng banko nayon eh 2M lang. Then sa 2M sila babase ng ipi finance nila so kung sabi nga ni isuzu eh 60% ng 2M lang iyon then iyong 500K (difference sa appraisal at TCP) plus 40% ng 2M iyong ang cash layout mo.

[Isuzoom]

you can use your other real estate property which has more higher appraised value than the property you want to buy. Ako medyo takot ako sa mga ganito loan but depende which property is more important to you.

[davy88]

actually madami rin misconceptions about renting, like feel nyo tinatapon lang ang pera.

when you buy a house and lot, may babayaran kapa mga real estate taxes every year and of course maintenance mahal din because of wear and tear. tutulo ang roof, repaint, piping problems, water pump, etc. etc. after 10 years. renovate na

in renting, wala kana iproproblema, and may nakatabi kang pera just in case kelangan. if you put almost all your money in buying a house, mahirap na if you need the money matagal magdispose ng real estate, unlike kotse mabilis lang.

the interest your money will earn instead of buying a house is usually enough to cover the rental. and the interest rates here talaga mataas, 10-13% per year so pag mag housing loan ka lugi ka for me. pag 5 years to pay edi parang nagbayad kana ng 40% more siguro

[Sheep]

actually madami rin misconceptions about renting, like feel nyo tinatapon lang ang pera.

when you buy a house and lot, may babayaran kapa mga real estate taxes every year and of course maintenance mahal din because of wear and tear. tutulo ang roof, repaint, piping problems, water pump, etc. etc. after 10 years. renovate na

in renting, wala kana iproproblema, and may nakatabi kang pera just in case kelangan. if you put almost all your money in buying a house, mahirap na if you need the money matagal magdispose ng real estate, unlike kotse mabilis lang.

the interest your money will earn instead of buying a house is usually enough to cover the rental. and the interest rates here talaga mataas, 10-13% per year so pag mag housing loan ka lugi ka for me. pag 5 years to pay edi parang nagbayad kana ng 40% more siguro

true indeed but when you are older and just relying on your pension and the allowance your children is giving you it is better to have a place of your own

and wouldnt it be nice if even for once in your lifetime you can say nagkalupa ako i own this piece of land may sarili akong bahay which eventually you can also give to your child

[empy]

actually madami rin misconceptions about renting, like feel nyo tinatapon lang ang pera.

when you buy a house and lot, may babayaran kapa mga real estate taxes every year and of course maintenance mahal din because of wear and tear. tutulo ang roof, repaint, piping problems, water pump, etc. etc. after 10 years. renovate na

in renting, wala kana iproproblema, and may nakatabi kang pera just in case kelangan. if you put almost all your money in buying a house, mahirap na if you need the money matagal magdispose ng real estate, unlike kotse mabilis lang.

the interest your money will earn instead of buying a house is usually enough to cover the rental. and the interest rates here talaga mataas, 10-13% per year so pag mag housing loan ka lugi ka for me. pag 5 years to pay edi parang nagbayad kana ng 40% more siguro

masarap nga maging tenant, as long as responsible and accommodating yung landlord mo. no headaches.

but how is the housing market there these days? kasi, the one thing you didn't mention is the appreciation in the home value, which could be a huge benefit. i have certain family members over there that built a house for 2 million and received offers to buy it for P15 million after 12 years of living there.

[Flagg]

Kawawa ngayon real estate. Now is the time to buy. Wag po condo sir theveed, mga monthly dues dun parang nagre-rent ka.

[chieffy]

theveed search for the number of Larry Gamboa (Think Rich Pinoy)...di ko maibigay number at nakakahon kasi ibang gamit namin ngayon dahil sa paglilipat bahay...

panigurado may rent to own units iyon...

[1D4LV]

theveed, actually yan din dilemna ko eh.
i want to sell my townhouse. naliliitan na kami ng family ko eh. pero ang laki ng downpayment. normally around 20-30%. not to mention yung annual interest rates ng bank.

kaya i'm also looking for units that are avaiable on a rent to own basis.

[baiskee]

true indeed but when you are older and just relying on your pension and the allowance your children is giving you it is better to have a place of your own

and wouldnt it be nice if even for once in your lifetime you can say nagkalupa ako i own this piece of land may sarili akong bahay which eventually you can also give to your child

agree. buying these kind of assets would be long term ang value nya.

mabuti na isipin mo yung gastos sa sarili mong bahay kesa gastos para sa ibang nagmamayari ng bahay.

pano pag ubos na pera mo pang rent? palalayasin ka na lang...

[Altis6453]

Very difficult to get a house on a rent to own basis unless the original owner sells it that way. Several Eastwood City condos are being sold that way. Yun nga lang, there are balloon payments every 10 or 12 months. Ok lang naman yung condo dues when you consider that the condo corp. provides 24 hour security, cleaning and maintenance of the common areas, plus repair service for your unit. Not for a growing family though unless you get those really big units (100 sqm and above).

One way to get the house you want at a cheaper rate is to scan the papers for auctions conducted by banks for repossessed property. You only need to pay around 10% of the price as downpayment, with the balance given to you as a loan. I think UCPB does that. 10% down, 10% interest p.a. They do auctions just about quarterly. Just inspect the property you intend to acquire since they are not new and most likely need some repairs done.

Also, be aware that the P2M to P3M range will get you a small house and lot (usually a small townhouse) if it's located within the major cities. Property in that price range but with bigger areas are located outside of the city (think Sta. Rosa or way south).

Hope this helps!

[orly_andico]

david,
you got PM!

what i've learned over the past 6 months is that when you cross C5 (heading towards Cainta/etc) the price drops dramatically. as in really dramatically.

what a lot of developers are doing now is, they hook up with Pag-ibig. what happens is that you pay your downpayment (which can be as low as 10%), stay on the developer in-house plan for a couple months, then apply for pag-ibig. the developers have pre-assessed the value of their property already with pag-ibig.

the pag-ibig rates are a bit higher than BPI published rates, but they offer lower equity (as low as 10%) and longer terms than the banks.

if you have 500k to sink into a downpayment marami ka nang choices nun. see my PM for the bloody details.

p.s. i'm not a real-estate agent. i just went through this process recently..

OTOH according to another friend of mine, it's better to rent than finance. you see, financing a house will eat almost all your disposable income (unless you are really rich). so no disposable income = degraded quality of life. plus, less money goes into the economy because you're spending less on "luho." e.g. if you rent, you can prolly buy that shiny new mazda3 or something. if you finance a house.. goodbye mazda3.

something like that..

[wulf]

sir orly,pa-pm din =) thanks for sharing

[karl88]

theveed, actually yan din dilemna ko eh.
i want to sell my townhouse. naliliitan na kami ng family ko eh. pero ang laki ng downpayment. normally around 20-30%. not to mention yung annual interest rates ng bank.

kaya i'm also looking for units that are avaiable on a rent to own basis.

OT: HG pm mo naman ako details of your townhouse, im looking for one eh!