Get a foot in the door with rent-to-buy
TIE UP Although the banks currently have several mortgage products available especially for first-time buyers, it is still difficult for many to qualify for a home loan due to the stringent requirements of the National Credit Act. But this does not necessarily mean that all is lost, says Martin Schultheiss, CEO of Harcourts Africa and rental property management company RentalsDotCom. “First-timers may still be able to realise their dream of home ownership if they can lease a home with an option to buy it at the end of the lease period, finances and landlord permitting.” He says the best way to create a lease with option opportunity is by searching the “homes to let” ads for a landlord who can be persuaded to give you an option to buy. “And you should be prepared to lodge an option fee that will be forfeit if you do not go ahead with the purchase by the agreed date.” the terms of the lease-with-option will then be negotiable: the length of the lease, the rent and the eventual purchase price of the property.