RENT-TO-OWN pros:
1. More affordable housing. Only pay 3 months rental deposit (~2%) instead of 10% of house price
2. Gives you more time to save up money for down payment while renting
3. Move in first and see if you like the property before buying
4. Lock-in property price at minimal capital appreciation
5. Refundable deposit - can use for down payment later

RENT-TO-OWN cons:
1. You don't own the property yet
2. Missing your rental payment can cause forfeit in your savings and deposit
3. A drop in property prices means you could be buying at a more expensive price as per agreement.

On con side
1) Whether you rent-to-own or just rent, then it is a draw. You don't own it as you said.
2) & 3), it is just an IF statements.

I would consider if the rates are good. Also would depends on the property. As far as I know, now only certain developers(on certain properties) offer the scheme. If it's open to more properties it would be appealing. On the con side also you can't pay higher deposit to reduce the monthly rent.

Location, Location and Location.

If location is favourable, developers will not participate.

In rent-to-own schemes like Houzkey, are we allowed to renovate the unit while renting?

Does Houzkey allows renovation during rental period? If it's allowed, will it be more appealing or depends on house condition?

No extension and alteration allowed. Only basic fittings permitted.

You are a 'tenant', not owner.

This post has been edited by mini orchard: Sep 27 2022, 11:48 AM

Buy within your affordability and credit score. If mortgage loan can approve, why go for Houzkey? Nowadays, buy property need down-payment? So that is not Houzkey rent to own pros. Rent out the available room to get rental to support your monthly installment, that is a solution.

what about rent-to-own for subsale? I haven't heard of r2o for non-developer project. I'm looking for property in USJ/PJ area

Unless you are willing to pay for an agreed future price, there is no incentive for seller to 'lock' the sale.

it is good if it is done by private company

if gomen, then kaput la the whole project, even if it is a good idea

Depends on rates & importantly Location 😁

Whatever...
Always buy within your credit score & financial capabilities 💪