With home buyers finding it increasingly difficult to secure a home loan to fit their needs, the Rent2buy concept is proving an even more popular way to secure your own home to purchase.
Lending institutions are granting less 100 % home loans and deposits of between 10 – 15 % are required.
How does Rent2buy work?
The seller grants the purchaser an option to buy the property at a predetermined price. This option can be exercised 6 – 24 months later. The terms and conditions of the sale agreement are added to the agreement with a lease for the property. Usually a higher rent2buy rental amount is payable and it can be negotiated that the extra rental paid is allocated towards a savings towards a deposit for when the property is later purchased.
How to you find a rent2buy property?
Finding a Rent2buy property is one of the most difficult “things” to get, says Meyer de Waal a Cape Town attorney who fine-tuned the Rent2buy concept over the past 10 years.
The development of some 10 000 houses to be developed over the next few years by a leading property group may open release more Rent2buy units to aspiring home owners.
Luckily, some property developers realized that a rent2buy buyer today, can be a “ready-to-buy-buyer”, some 6- 18 months later, says De Waal.
We recently met with one of the largest property developers in South Africa and they plan to construct some 10 000 new homes in the next few years. This group is interested to provide a few Rent2buy units to us. The units will be constructed over a period of time and this it will be an ideal opportunity for a home buyer who is almost ready to buy a home, but not yet 100 % there, to get his or her foot in the Rent2buy door.
Get your name on the “VIP Rent2buy Preferred Buyer’s list”
How to get your foot in the door and get your name on the “VIP Rent2buy Preferred Buyer’s List”
One of the challenges is to find a rent2buy property in your area, that matches your requirements, your price range & your affordability & your rent2buy time line.
Such a Rent2buy property is thus not easy to come by. We decided to enable aspiring home buyers to get started early, so by the time that the rent2buy units become available, they will be ready to proverbially “know on the door” to secure their own home says De Waal.
FIND A RENT2BUY PROPERTY
Early Bird Alert Service
If you join the Rent2buy database, we will:
BECOME AN EXPERT
Information & Education
If you join the Rent2buy database, we will:
WHAT IS YOUR BUYING POWER?
It will very embarrassing to find a rent2buy property and one cannot afford it.
We developed an online process to assist to calculate one’s own credit score and affordability. This calculation is very similar the close to as the application process to apply for a home loan, considering that a rent2buy buyer must prepare himself for a home loan at the end of the rent2buy period.
Even for aspiring home owners who have problems with a low credit score, they can subscribe to the Rent2buy database as we aim to assist all to eventually one day own their own home, says De Waal.
Complete the Rent2buy My Bond Fitness online process, then we will be able to determine your rent2buy time line.
SOME DEBT OR AFFORDABILITY ISSUES?
If you experience problems to resolve issues to improve your credit profile to qualify for a home loan, we also have the My Budget Fitness service to assist. If you join the Rent2buy Database, we will be able to analyse the situation and assist per individual application and profile.
NEED A DEPOSIT?
If you earn less than R15 000.00 per month, also consider to apply for a government subsidy that you can use as a deposit – go to www.flisp.co.za for more information.
If you earn more than R15 000.00, all is not lost. With the rent2buy concept, you have the opportunity and extra time to save towards a deposit. The rent2buy transaction can be negotiated that a portion of the rental paid goes towards the savings for a deposit. While you rent, you save towards a deposit.
HOW DO I JOIN THE RENT2BUY DATABASE?
Register on the Rent2buy database and you will receive all the benefits.
Go to – https://r2b.mybondfitness.co.za
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)