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Rent to Own

Rent to own (RTO) financing is a type of home financing option that is available in Malaysia. It allows buyers to rent a property with the option to purchase the property at a later date. Here is a brief overview of how RTO financing works in Malaysia:

  1. The renter/buyer agrees to rent a property for a certain period of time, usually 2-5 years.
  2. During this rental period, the renter/buyer pays a monthly rent that is higher than the market rate. A portion of this rent is usually credited towards the purchase price of the property.
  3. After the rental period, the renter/buyer has the option to purchase the property at a pre-agreed price. The amount credited towards the purchase price during the rental period is applied to the purchase price.
  4. If the renter/buyer decides to purchase the property, they will need to obtain a home loan to pay the remaining balance of the purchase price.
  5. If the renter/buyer decides not to purchase the property, they will lose the credit they have accumulated towards the purchase price.
  6. Some RTO financing may require a down payment, while others may not.

Rent to own financing can be a good option for buyers who are unable to obtain a traditional home loan or who need time to improve their credit score before obtaining a home loan. It also allows buyers to try out a property before committing to a purchase, and it can be a good option for buyers who are unable to afford the full purchase price of a property upfront.

It’s worth noting that, the terms of the RTO financing agreement and the conditions of the purchase option can vary widely depending on the property and the parties involved. It’s important to be aware of the specifics of the agreement and to read it carefully before signing to ensure that it is a good fit for you. Maybank Houzkey is where you can get more information!

Please consider this:

  1. House Renovation Cost
  2. The monthly payment before you make your final decision

Are Non Refundable or Reimburse in anyway if you decide not to purchase the unit you selected. Therefore getting a good RUMAWIP is probably a better option because if done professionally, even if you move out and rent out the unit; the rental income may cover your mortgage payment.

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