For those who do not know, RENT-TO-OWN means that you buy a property, amortize its payment using a bank loan, and pay for your monthly amortization by the revenue you get out of renting out the same property. This is the most ideal scenario for you to own a property because you only put out a relatively small percantage of money (usually only the downpayment) to buy the property.
For example, say you want to buy a p1.6M pre-selling property. The terms given by the seller are 30% of the 1.6M must be paid in downpayment (which is p480 thousand) , while the other 70% can be given upon the completion of the property’s construction (equal to p1.12M). As a rent-to-own buyer, you first pay the downpayment of p480k, then you bank loan the remaining 1.12M balance to get an amortization of p15thousand per month for 15 years, and then rent out the same property at around p12 thousand a month. In effect, you only pay p3k net monthly amortization since your rental revenue pays p12k for you! In total, only paid the down of p480k, and 120 months of p3k net payments totalling p360k, which brings a total of p840k. Not bad eh? You get to own a p1.6M asset by just puting out a little more than half of it 
There are many philippine properties where you can practice this great Rent-to-Own principle.. which makes millionaires into even bigger millionaires! In fact, some of these philippine condos, houses and lots even give you the chance to have a bigger amount of rental revenue compared to the monthly amortization, which gives you FASTER EARNINGS! Such treasures are of course not easy to find, but I have a few out there. More details coming in the next blog posts, so stay tuned…
