Affordable House and Lot: Comparing Rent-to-Own Vs. Renting


Everyone’s dream is to have their own home, which is why rent-to-own house and lot and rent-to-own condominiums were introduced. These type of property acquiring is an agreement whereby a payment is made monthly with an option to buy the property before the lease period expired. This provides the person with an option to buy the leased property in a specific amount. Rent-to-own or Renting, which is the better option for you?

According to Philippine Statistics Authority, only 64.1% of Filipino families own a house and lot in 2019, which leaves us 35.9% either renting or rent-free. With the high cost that covers buying a house and lot or condominium, it seems difficult to acquire a property. People find it convenient to rent a property, this is an agreement whereby a payment is made for the temporary use of a good, service, or property. Usually paid every month, families are renting a property for a temporary shelter. 

Advantages of Rent-to-own

1. Credit score

The most advantage of a rent-to-own house and lot and condominiums is you can enter into a contract even with a bad credit score. The main contract agreement is you will rent the property with an option to purchase the property before the contract ends. Your monthly rental fee will be deducted from the total purchase price of the property.

2. Test the property

Another advantage is you can test the property before finalizing whether to purchase the property or not. This will allow you to have the overall assessment of the rented property. The good news is that Bria Homes offer affordable house and lots and condominiums with a rent-to-own scheme. Read what to check when buying an affordable house and lot to prepare your checklist. 

3. Price appreciation

As mentioned above, real properties are expected to rise in value. Whatever purchase amount is stipulated on your contract will be the same, regardless the property appreciates or depreciates. The advantage you have here is when the property appreciates and the current market value is higher than the purchase amount. The excess will be your gain. You can check out What increases your home’s value in Bria Homes to have a keen understanding what are the factors that contribute to your property appreciation

4. Good option

Rent-to-own house and lots and condominiums can be a good option for people who do not have funds to buy a home or who lacks a credit score. This will provide them more time to accumulate more funds while living at their dream home. The normal time frame of renting is about 1 to 3 years depending on the contract. 

5. Builds equity

Rent-to-own house and lots and condominiums are another good way of investment. It could help you build your wealth and its rise in value over time. While you have your dream home, you also have another income stream added to your list.

6. Access to amenities

Rent-to-own house and lots and condominiums provide you access to amenities such as a pool, gym, and lounge. Amenities are special access provided to residents for them to use and enjoy with their family, friends, and neighbors. This provides you convenience as all exclusive benefits of the property can be shared with you. You can check out top amenities and features that you must look into house and lot, and condominiums by Bria Homes. 

7. Move-in quicker

Another advantage of rent-to-own properties is you can move in quicker compared to buying a house and lot or condominium unit. Since rent-to-own properties are all ready for occupancy. You can now start browsing properties at Bria Homes.

8. No taxes

Legally speaking, in a rent-to-own agreement, the rent to own property under this contract is still not yet under your name until the balance is paid in full or the ownership is transferred to you. While the property is not yet under your name, you are not responsible to pay for taxes, thus no tax expense for you. You can enjoy this benefit while bearing in mind that the property will be yours in the near future. 

Disadvantage of Rent-to-own

1. Possible forfeiture of money

When you decided not to buy the rent-to-own house and lots and condominiums, you will lose all the money you paid including the initial premium payment. There are also fines and penalties in case of late or missed payments. Know the terms and conditions before entering into a contract. 

2. Price risks

When the market value of the property depreciates and the current market value is less than the purchase amount, the excess will be your loss. Though seldom happen in real property, there are still risks you must know in investments. Equipped yourself with knowledge and start your inquiries with Bria Homes today with their affordable house and lots, and condominiums.

3. Limited control

Renting the property provides you with limited control. Since you are not the owner, every little change to the rented property will have to undergo approval from the landlord. That being said, you cannot do renovation or expansion anytime and you must abide by the rules specified in the contract. Know the factors when deciding between owning and renting to help you with decision-making.

4. Higher rent

The rent-to-own properties require higher down payments, premium payments, and monthly rent versus renting. Especially when you decided not to buy the property, this may have cost you more than entering into a usual renting agreement

Listed above are the advantages and disadvantages of rent-to-own properties. Weight your options and you’ll see that rent-to-own properties could give more advantages. Nothing beats having your own home. Acquiring your home is a tedious task as you will be needing a long checklist. But with Bria Homes, offer affordable house and lots and condominiums with a rent-to-own scheme to help more people acquire their home. Now, listed below are the advantages and disadvantages of renting a property. With a high cost that covers acquiring a property, some families are now renting a home to be their temporary shelter. Know each topic as you continue reading below.

Advantages of Renting

1. No maintenance cost or repair bills

Unlike having your own home, maintenance costs and repair bills are shouldered by the owner during the rental period, except in the scenario wherein it was under your fault or responsibility. Maintenance costs are necessary to ensure your home is in its top condition. Repair costs are expenses you need to pay to bring back the appliances in working condition. These costs are necessary for homeowners. Read the basics of house and lot maintenance at Bria Homes to provide insights into the maintenance checklist.

2. No real estate tax

Real estate taxes are paid annually based on the current market value of your property. Renting a house or a condominium puts you the exception to pay taxes on the property you are residing in. Paying the real estate tax is the responsibility of the landlord or the owner.

3. Flexibility where to live

It provides you the flexibility where to live. If you have just started a new work, you can move to a nearby place for convenience. If you want access to malls, then you can easily move without worries. Staying at a nearby mall will give you convenience by going to Coffee Project to avail yourself of your morning coffee, or to AllHome to purchase all your home needs, or to AllDay Supermarket to buy your groceries, or to AllBank for your banking needs. Having access to all these stores in your area is a goal. No need to spend too much on your fares.

4. Fixed rent amount

A fixed amount of monthly payment will help with budgeting. You can also look for other properties for lease within your budget and preferences. You have the authority over the budget, location, amenities, and style. A fixed amount of monthly rent payments can easily be adjusted based on your monthly income and expenses. But remind that the rental property increase in rent fee as the location is near to mall, amenities, terminal and a lot more factors. 

Disadvantage of Renting

1. No room for expansion or renovation

The bad side of renting is that you don’t have the authority over your home. Rent to own contracts usually bind you to ask permission for small matters such as hanging cabinets, room designs, and paint to your landlord. Renovation and room expansions are out of the question since rented houses are usually catered to a specific number of families and therefore no space is allocated for expansion. Read tips for money-saving and affordable house renovation for insights at Bria Homes to provide you with ideas.

2. Not building value

The downside of the rented property is that it does not appreciate, well mostly because you do not own the property. Many real properties nowadays rise in value as more people are engaging in investments. The most popular type of investment is real property. Learn the 7 best things about affordable house and lots as investments at Bria Homes. This will help you decide whether to rent or rent-to-own.

3. Rent value increases

Property for lease increases in value as the society around them rises. As the rented property increases in value, the rent fee also increases. Thus, you don’t have control over the property. No matter how much you love the community and location, the landlord has all the authority. The rental fee is under the authority of the landlord whether you agree to it or not. Worst, you will be forced to move out due to a tight budget. 

4. Moving expense

As you move around from one house to another, moving expense is an additional cost to consider. Renting or availing of a moving carrier is expensive depending on the number of your items and their weight. Packing your things is a tiring task and later on, be needed to unpack and re-arrange your things once more. This will generally take you weeks of time. 

5. Minimalist living

Usually rent to own work for minimalist homes. You will be forced to have minimal appliances, minimal clothing, and minimal furniture. If needed, all your appliances are in small sizes to fit in your unit. This is another disadvantage when renting. If you like cooking, you can’t have all the necessary kitchen appliances. If you are a fashionista, you can’t hoard clothes as cabinets in a leased property are small, and worst you will be the one to provide a clothing cabinet. If you are an artist, arranging your equipment, artwork, and material takes up too much space. 

These are the advantages and disadvantages of rent-to-own and renting agreements. With all the list above, assess yourself and your preference which is the better option for you. 

Affordable House and Lot

Nonetheless, Bria Homes can offer you a variety of options, from house and lots, condominiums, bank housing loans, PAG-IBIG housing loans, to rent-to-own properties. 

In conclusion of this article, rent-to-own properties are a good chance and a good opportunity for people who lacks credit score and finance to acquire their own property. This is a better opportunity for your future self and future family. As mentioned above, real properties rise in value, thus it is a good investment for everyone, especially for young professionals. People have to start investing and Bria Homes can be your option. Imagine having a property under your name, enjoying all the amenities provided, and all the services offered. This is a good way to start your journey to acquiring your first property and investment. You ticked out two of your checklist towards financial freedom. 

Renting a property may provide you lower monthly expenses but if you are looking in the long run, it actually accumulates more expenses rather than acquiring your own. Let’s do a simple comparison, paying your rental fee continues as long as you are renting a property while acquiring your own property will last 10 to 20 years of payments depending on your contract. When talking about time, it is actually better to pay in specified years rather than paying for a property that will be never under your name. Rent-to-own properties provide you with more flexibility in both renting and acquiring your own property. 

Rent-to-own or renting? The choice is yours. Your decision today will greatly impact your future. This article will help decide between both choices. 

Written by Ericka Claire Glean