The Basic Type Of Housing Tenure And Its Pros And Cons

Published: 21st May 2010
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In the many types of housing tenure, owner occupancy and tenancy are considered as some of the most frequently used forms of ownership. Housing tenure is a term used by many experts and professionals to determine the type of ownership an occupant has on any type of residence, may it be an apartment or a house.

Throughout the years, a number of new types of housing tenure was introduced to properly address a type of ownership. According to many experts, new types of housing tenure used in the industry today include cooperative housing, condominium (a.k.a. commonhold and strata title), public or government housing, and squatting.

Although a number of new types of housing tenure is used in the industry, many still agree than owner occupancy and tenancy are still the most frequently used types of ownership. So what is these and what are its advantages and disadvantages?

Owner occupancy
Owner occupancy is a type of housing tenure in which the owner of the house, mostly known as the owner-occupier, owns the house and the land it sits on. According to many philippine real estate experts, owner-occupancy have been modified and used in many other types of housing tenure such as condominums, apartments, and housing cooperatives.

Pros and cons
Like many other types of housing tenure, owner occupancy is also known for its advantages and disadvantages. According to a number of philippine real estate experts, the main advantage of owner occupancy is that it gives its occupants the right to modify the building and land as they please, although this may be subject to government, homeowner association, and deed restrictions.

The advantage of owner occupancy from tenancy is that it protects its owner from eviction, and creates a right to occupation which can be inherited. In some jurisdictions, it also confers certain legal rights with regard to abutters. However, according to many philippine real estate experts, the disadvantage is that houses and the land they sit on are expensive, and the combination of monthly mortgage, insurance, and property tax payments is greater than monthly rental costs.

Tenancy
Tenancy or leasehold estate is a type of ownership in which a lessee or a tenant holds real property by some form of title from a lessor or landlord. The advantage of tenancy compared to owner occupancy is the cost of residence. Because tenancy only involves renting a space for residence, the cost is usually lower compared to investing a lot of money on buying a house or any kind of housing. The disadvantage, however, is that it doesn't protect its residents from eviction.
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