Rent-To-Own: 12,134 GSIS Foreclosed Properties Available via Lease With Option To Buy (LWOB)

July 21, 2023 – Here are the latest list of GSIS foreclosed properties, now under Lease With Option to Buy or LWOB. This is a different kind of “rent-to-own” scheme from the GSIS. Details below.

GSIS Lease With Option to Buy List of Properties (LWOB)

For easy searching and filtering, I have uploaded all 12,134 GSIS properties that are for Lease With Option to Buy into my database. To view the list, click on the button/link below.

==>Click to view GSIS Lease With Option to Buy List of Properties

Alternately, you may also view the listings in PDF format below:

• NCR GSIS Lease With Option to Buy list as of May 31, 2023 (pdf viewer/download)
• Luzon GSIS Lease With Option to Buy list as of May 31, 2023 (pdf viewer/download)
• Visayas GSIS Lease With Option to Buy list as of May 31, 2023 (pdf viewer/download)
• Mindanao GSIS Lease With Option to Buy list as of May 31, 2023 (pdf viewer/download)

Contact Info for GSIS LWOB properties

Interested parties may contact GSIS directly to get more details through the following:

For leasing inquiries, you may call the Real Property Accounts Management Department (RPAMD) at trunk line numbers (02) 8479-3600, and (02) 7976-4900 local numbers 3374, 3396, and 3425 or send an email at gsisrpamdcst@gsis.gov.ph.

Source: General Guidelines

What is the GSIS LWOB?

To better understand what the GSIS LWOB is, please check out the most detailed video I have found about is (so far).

Mr. Apollo Escarez (Vice President – GSIS Real Estate Asset Disposition and Management Office) explains why they came up with a different kind of “rent-to-own” scheme through their “Lease With Option to Buy” or LWOB program.

You will also understand why a lot of properties are “occupied”, which is actually the main target market for the program. Click below to play the video.

Note: The video below was published last July 2022 (almost a year ago as I write this) and you will notice the 15,000 properties mentioned is now down to 12,134. I suppose a lot of people have already availed the LWOB program.

Here are the key takeaways I got from the video:

1. I agree that rental rates would be cheaper and more manageable as compared to monthly amortization/installment payments for outright purchases. Rental rates are also cheaper compared to monthly payments for traditional “rent-to-own” schemes where the tenant buyer has already exercised the “option to buy” at the start (which means the monthly payments will be higher).
2. The LWOB program will give current occupants a legitimate path to home ownership and there would be no need to eject the occupants.
3. The main target market of the LWOB program are current occupants of GSIS foreclosed properties/ acquired assets, as follows:
   • GSIS members who availed housing units under past government shelter programs through mortgage loan/installment but ended up in foreclosure/cancellation due to financial difficulties because of the pandemic, etc.
   • Other unauthorized occupants of GSIS foreclosed properties/ acquired assets.
4. Around 15,000 properties were mentioned in the video, but the current LWOB list of Properties (as of May 31, 2023) only has 12,134 and this could mean a lot of people already availed the LWOB, and/or a number of properties are not yet included in the listings.
5. The main requirements are:
   • Proof of Filipino Citizenship
   • Proof of source of income (certificate of employment, bank statements, etc.)
   • 2 valid government issued ID’s

My only concern would be these – This program might be abused by those who would look for unoccupied properties from the GSIS, and forcibly enter to occupy the property, so they can avail the LWOB. I hope the GSIS will find a way to prevent this.

What is the difference between the GSIS LWOB and traditional “rent-to-own” schemes?

The main difference is that an LWOB tenant/buyer will only have a lease contract at the start. This means the monthly payment is simply the monthly rent and this can go on indefinitely until he decides to avail his “Option To Buy” and own the property.

In other words, it starts with just renting, and then you can decide later if you want to proceed and buy the property. So we can still call it “rent” to “own” because you start with renting, and you can own the property later if you decide to buy.

For the traditional “rent-to-own” payment schemes, the “buying” is already agreed upon at the start, so in addition to the monthly rent, a “premium” is added so that all the payments will go towards the purchase of the property. This was how I flipped foreclosed properties before, via a rent to own payment scheme… but due to possible tax complications, I stopped doing this in favor of bank financing.

I can discuss this further in a separate article, let me know if you want me to do this, just let me know through the comments section below this article.

How can I buy a house from GSIS via LWOB?

To get a detailed explanation, I believe it would be better to refer to the general guidelines from GSIS. See below:

General Guidelines for LWOB

Source: https://www.gsis.gov.ph/

In addition, here are all available downloads and forms (Guidelines, FAQ, Application Form, and Checklist of requirements) with regard to the LWOB. The links below are direct links to the files on the GSIS website.

• General Guidelines
• Frequently Asked Questions
• GSIS Lease With Option to Buy Application Form
• GSIS Lease With Option to Buy list of Requirements

How much is the rental rate?

I was wondering why the list of properties had no rental rates included, so I searched and found this in the General Guidelines:

“7. The minimum monthly rental fee shall be based on the comparative market figures and capitalization rate.”

Source: Item # 7 of General Guidelines

I could be wrong, but I believe they (GSIS) will determine the rental rate at the time of availment of the LWOB.

How much will be the selling price for the Option To Buy?

As per General Guidelines:

“Upon approval of the OTB, the lessee shall pay the purchase price in manner provided in policy on disposition of IP-RUs,which is CMV of the property at the time of its approval or any offered amount received for same property, whichever is higher, within thirty (30) days from the receipt of the letter of approval.“

Source: Item # 28 of General Guidelines

But what is CMV?

“Current Market Value (CMV)–the value of the IP-RU, including the improvements built thereon, if any, determined on an annual basis by the Property Administration Department (PAD) based on recognized modes of real estate appraisal.“

Source: GSIS POLICY AND PROCEDURAL GUIDELINES NO. 304-16

Based on the above, I believe the selling price will be based on the appraised value of the property at the time the tenant/buyer will avail his/her Option To Buy.

IP-RU refers to GSIS Investment Properties – Retail Units, which are the GSIS acquired assets and foreclosed properties for sale.

Is the Option To Buy for cash payments only?

Yes. According to Item 28 paragraph a. of the General Guidelines, interested parties can only buy through cash. I have quoted this below for easy reference:

“The lessee has the Option to Buy (OTB) the leased premises at any time during the effectivity of the lease agreement but not exceeding thirty (30) days before expiration of the lease. During this period, and provided that the lessee has no outstanding unpaid rental, he may send GSIS a written proposal to buy the leased premises in cash.”

Source: Item # 28 paragraph a. of the General Guidelines

Actually, this was a big turn-off for me because everyone knows that very few people can afford to pay in cash when buying properties.

Update: Lease With Option to Buy through installment up to 25 years?

A longer payment term of up to 25 years seems to be possible, based on a press release I found at the GSIS website. I’ll quote the relevant portion below:

“Ang installment sale naman ay available sa GSIS members na gustong bumili ng bahay sa ilalim ng programang Lease with Option to Buy o kaya sa public bidding. Ang installment ay maaaring bayaran hanggang 25 years. Kung condominium, ang term ay hanggang 20 years at kung bakanteng lote, 15 years to pay,”

~ GSIS President and General Manager Wick Veloso

Source: Press release – GSIS OFFERS HOUSING LOAN CONDONATION, INSTALLMENT SALE

This is definitely a welcome development! With installment terms of up to 25 years, this means that the monthly payments will definitely be more affordable and manageable!

However, I can’t find any reference to the installment option for LWOB in the latest guidelines/FAQ. So if you are going to avail the LWOB program, please make sure to ask about this.

GSIS LWOB Frequently Asked Questions

Got more questions? Please refer to the list of frequently asked questions about LWOB below:

GSIS foreclosed properties for public bidding

There are currently no upcoming bidding schedules for GSIS foreclosed properties / acquired assets . I’ll update this article when I find any new schedules/listings.

Reminder: Avoid “Occupied” GSIS foreclosed properties

Keep in mind that a big number of GSIS foreclosed properties scheduled for bidding are “OCCUPIED”.

We highly recommend to avoid those occupied foreclosed properties.

The only exception would be for those who are the current occupants and would like to purchase the property, especially those under the LWOB program.

How about foreclosed properties from other sources? See below…