Robinsons Land launches lease-to-own program
MANILA, Philippines – Robinsons Land Corp. launched on Tuesday a new program that offers lease-to-own options in its finished condominium and housing projects.
The new program, called "Right Homes," caters to those looking for completed projects which Robinsons Land can sell outright or offer under affordable lease-to-own terms.
The program is an alternative to pre-selling or pre-construction projects, wherein clients decide on the bases of floor plans and model units.
Because completely built units are typically pricier than those acquired through pre-selling, Robinsons Land has tapped partner banks to develop payment schemes that will address price points.
"There are people who can't afford to pay for amortization and rent at the same time. But it's important for them to invest in a place or buy a home where there is a single payment," said Robinsons Land senior vice president Mybelle Aragon-GoBio.
Residential condominium units in Metro Manila, Tagaytay and Cebu as well as readily available homes in Metro Manila have been pooled into the "Right Homes" program.
Under the lease-to-own program, 100 percent of rental payment made in a year or two will be credited as part of the purchase financing.
After the term of lease, banks can refinance the unit at terms that will approximate the monthly lease payment.
For instance, a P1.5-million residential unit under the Robinsons Communities brand with a 22.5-square meter footprint can be purchased for P12,898.93 monthly under a bundled 15-year term at an assumed interest rate of 11% per annum.
For a 49.5-square meter unit worth P3 million under the Robinsons Residences brand, monthly amortization is estimated at around P28,000.
A P5-million unit under the Robinsons Luxuria brand, on the other hand, can be purchased with a monthly amortization of P46,000.
The units pooled in this portfolio also cater to investors seeking returns in a low interest rate environment.
The annual gross rental yield is about 4-5% of invested capital.
"If you are getting a pre-selling unit, you have to pay over time like four or five years. You only get to move in or rent it out once it's done," GoBio said.
"You can pay for it now and your tenant can come in. It's like matching your payments with the rental payments you're receiving,” she added.
The sale of completed units also allows Robinsons Land to recognize sales revenues at a much faster pace compared to sales under pre-selling schemes.