Very often we get asked, “should I rent to buy?”. This is very tricky and rely on quite a range of different factors. You should consider affordability, eligibility, location, asking price, future expansion, time frame etc.
When the opportunity comes along whereby a home owner or investor has plans on selling but still wants to let out his property for a few months or years, the tenant is presented with the opportunity to rent before purchasing.
What is my advice?
Firstly, I would ask, were you thinking of buying in the first place? Many times tenants are presented this opportunity without prior desire to purchase and then get caught up in the excitement of buying their first home only to find out too late they don’t qualify or cannot afford it.
Renting to buy is a great opportunity to see if you like the home you plan on buying, if it suits your lifestyle and whether you can afford all the necessary budget requirements that go with the home. So, be very sure you are in the market to buy when choosing a home that has the rent-to-buy option.
Secondly, consult your local rental specialist and calculate all the cost comparisons. Due to inflation and external economic factors and loan stipulations the bond repayment might be a lot more than the rent you’re currently paying and this could cause you quite a lot of long term difficulties so, play open cards with the real estate agent. In addition remember the maintenance and upgrades of the home are now your responsibility, so factor that cost in too.
Lastly, take your time. The rent to buy option is a great opportunity most of don’t get. So, truly take your time with the home, planning all the little details and analysing all the finer things you wouldn’t be able to do if you bought straight up. This way you can feel completely comfortable when that house becomes your home.
Harcourts Dunn Rentals General Manager