Rent to own house?

by Jen

I bought a row house in Cavite 5 years ago worth P250,000 through PAG-IBIG payable in 25 years and now the value of the house is already P350,000. I'm renting it out to someone for only P 1,500 which is the amount of my monthly amortization in Pag-IBIG.

I want to sell this property now but the title is still under PAG-IBIG since I haven't paid it off. What can u suggest for me to do so I can earn money with this property? Is it ok to put it as rent to own but how do I go about it?


Dom’s Reply: Putting your house on rent to own is an option. You can earn from the deposit and you can set the monthly rent higher than your monthly payment to Pag-IBIG. You need to consult a real estate lawyer for a contract to fix this arrangement.

Or assign/transfer the Pag-IBIG loan to your buyer and get cash out of the deal. If the house is worth P350,000, you assign the remaining Pag-IBIG loan to your buyer and you get the difference. Ask Pag-IBIG how you can assign or transfer the loan.

Thanks for passing by, Jen!