Get a foot in the door with rent-to-buy

Business Day - Home Front - - HOMEFRONT -

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.

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