Defining RENT TO OWN

[21guns]

hi, very good points, let me go through it per paragraph.



I think there is a typo here somewhere but getting roi in 10 yrs time is not very good.



This will definitely work for property owners as pagibig or the financial institution granting the loan will pay the owner, and of course the buyer will pay pagibig or the financial institution on their agreed terms.



If the bank approves the loan, less risk on the seller, as he already gets his money and of course buyer pays equity. I agree on the risk of the buyer when loans are approved even without individual titles, but that's a risk the buyer will have to take to enjoy the easy payment schemes offered. Since, by the time individual titles will be ready, a house would already be on top of the lot, which would mean challenging payment options for the buyers, perhaps a 6 month 20% - 30% downpayment term.



The total lot price will increase but if the buyer stops paying, the bank will foreclose the property, not the seller.

Thanks!

Thanks for the reply, anyway I will make things clear out that as soon as the bank approves the loan it is now the bank which is the rightful seller.

[TED4]

not a problem. good luck!