06/07/2020
RENT-TO-OWN vs PERPETUAL OWNERSHIP
📌Perpetual Ownership, meaning you own your unit, has a right to common areas, has a co-ownership of the condominium land or lot area of the project for a lifetime.
📌Rent-to-own (RTO), or lease-to-buy, is an agreement that gives an individual the option of purchasing a leased property from its owner within a specified period of time.
☑DISADVANTAGES OF RENT-TO-OWN: ☑
1. For buyers, a downside is if they choose not to purchase, all paid rents will be forfeited.
2. If the home value depreciates during the rental period, the renter would end up having to pay for a property that is way above market value.
3. If the lessee falls behind rent, this may get him or her evicted and would lose the down payment and all previously paid rent.
4. With a rent-to-own arrangement is the possibility of the lessor being unable to pay mortgage, which means that the paid rent may be forfeited and that the potential buyer will no longer be able to purchase the property.