In housing tenure, the terms owner-occupancy and tenancy are some of the most frequent terms used in residential real estate. Although both has their advantages, owner-occupancy and tenancy have also been known for their disadvantages and adverse effects.
When it comes to residential real estates, housing tenures have always been one of the many terms described under real estate. So what is a housing tenure? According to many professionals, such as the Real estate Philippines experts, housing tenure is term used to refer to the legal binding under which someone has the right to live in any type of housing from apartments to the typical house. Some of the most common types of housing tenure is owner occupancy and tenancy.
Owner-occupancy
Owner-occupancy involves an individual, or also known as the owner-occupier, who lives in a house that he or she owns. Owner-occupancy is therefore also called home ownership. Compared with tenancy, owner-occupancy are a much more permanent form of housing tenure. These ranged from the typical single-family detached home to other forms of houses such as condominiums, townhouses, and housing cooperatives. Some have also suggested that apartments could also be a form of owner-occupancy when its tenant decided to buy that unit.
The advantage of owner-occupancy to other forms of housing tenures is that it gives the occupants rights to to modify the building and land as they please, protects them from eviction, and creates a right to occupation which can be inherited. However, according to Real estate Philippines experts, houses and the land it sits on on are expensive, and the combination of monthly mortgage, insurance, and property tax payments is greater than monthly rental costs, which is why many are still opting to renting a house rather than buying it.
Tenancy
Tenancy, or more commonly known as leasehold estate, is a form of housing tenure in which a lessee or a tenant holds real property by some form of title from a lessor or landlord. Leasehold or tenancy is a form of property tenure where one party buys the right to occupy land or a building for a given length of time. As lease is a legal estate, leasehold estate can be bought and sold on the open market.
Until the end of the lease period the leaseholder has the right to remain in occupation as an assured tenant paying an agreed rent to the owner. However, according to several Real estate Philippines experts, there have been several adverse effects coming from this system. Tenants have to pay the landowner even though they are doing all of the agricultural work. In a sense, it is a cycle where the tenant is never really able to become a landowner because they constantly have to pay the landowner, as well as other expenses.
When it comes to residential real estates, housing tenures have always been one of the many terms described under real estate. So what is a housing tenure? According to many professionals, such as the Real estate Philippines experts, housing tenure is term used to refer to the legal binding under which someone has the right to live in any type of housing from apartments to the typical house. Some of the most common types of housing tenure is owner occupancy and tenancy.
Owner-occupancy
Owner-occupancy involves an individual, or also known as the owner-occupier, who lives in a house that he or she owns. Owner-occupancy is therefore also called home ownership. Compared with tenancy, owner-occupancy are a much more permanent form of housing tenure. These ranged from the typical single-family detached home to other forms of houses such as condominiums, townhouses, and housing cooperatives. Some have also suggested that apartments could also be a form of owner-occupancy when its tenant decided to buy that unit.
The advantage of owner-occupancy to other forms of housing tenures is that it gives the occupants rights to to modify the building and land as they please, protects them from eviction, and creates a right to occupation which can be inherited. However, according to Real estate Philippines experts, houses and the land it sits on on are expensive, and the combination of monthly mortgage, insurance, and property tax payments is greater than monthly rental costs, which is why many are still opting to renting a house rather than buying it.
Tenancy
Tenancy, or more commonly known as leasehold estate, is a form of housing tenure in which a lessee or a tenant holds real property by some form of title from a lessor or landlord. Leasehold or tenancy is a form of property tenure where one party buys the right to occupy land or a building for a given length of time. As lease is a legal estate, leasehold estate can be bought and sold on the open market.
Until the end of the lease period the leaseholder has the right to remain in occupation as an assured tenant paying an agreed rent to the owner. However, according to several Real estate Philippines experts, there have been several adverse effects coming from this system. Tenants have to pay the landowner even though they are doing all of the agricultural work. In a sense, it is a cycle where the tenant is never really able to become a landowner because they constantly have to pay the landowner, as well as other expenses.
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