How To Rent To Buy A Home In Brisbane


 

If you want to buy your own our home but cannot currently qualify for a bank loan, the good news is that you can start the journey towards home ownership by using the rent to buy system. It is very difficult for a lot of people to qualify for bank finance, especially as the banks are always changing their qualifying criteria. Just because people don’t qualify with the banks, does not always mean that they cannot afford to pay for their own home.

Using the rent to buy system you don’t need to qualify with the bank in order to start towards owning your own home.

Under the rent to buy system, you simply rent your property for an agreed number of years using a normal rental agreement, but at the same time you have the right to buy the house at any time during the rental period. That means when you do eventually qualify for a loan, you simply buy the house that you are currently renting.

It is a very simple paperwork system that allows this to happen:

1. Rental agreement… Firstly you have a normal rental agreement using the standard terms relevant to the state that you live in to effect a rent to buy. Brisbane residents will use an REIQ residential tenancy agreement. This rental agreement gives you the right to rent a property for the agreed period of time, usually between1 to 5 years.

2. Option to buy… Secondly you will need a legal document which gives you the security that you can buy the house at any time during the rental agreement period.This option to buy agreement specifies the agreed price that you will get to buy the house for, as well as specifying any credits that reduce the price for additional payments you make during the rental period.

Then, after you have been meeting your rental payments as well as any additional payments you are making towards buying the house, you can approach a bank for atraditional bank loan. By being able to prove that you can comfortably afford your payments under the rent to buy system of paperwork, you can give the bank conference that you have a track record and a capacity to qualify for a loan.

Using the rent to buy system can fast track your ability to qualify and prove to a bank that you are worthy of approval for a traditional bank loan.

Brisbane has opportunities to rent to buy your own home!

Brisbane has opportunities to rent to buy your own home!

Here are some of the benefits to the purchaser of buying a house using rent to buy. Brisbane residents will notice that there are more and more of these opportunities becoming available all the time:

– you don’t need to qualify with the bank to get started
– you can move in now whilst waiting to qualify and build up your track record for a bank loan
– you only need a low deposit to get started
– there is no obligation that you have to buy the house, you only complete the purchase if you want to

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