In a major step towards making home ownership more achievable, the first Rent-To-Buy tenant, Sean, has officially received the keys to his new home under a groundbreaking initiative by the SA Government.
The program allows tenants to rent at a reduced rate before having the option to buy, providing a practical new pathway to owning a home for South Australians who’ve long been locked out of the property market.
Sean, a long-term Housing Trust tenant, had once believed home ownership was out of reach. The Rent-To-Buy Affordable Housing Initiative has changed that, giving eligible long-term renters the opportunity to purchase one of 125 new homes being built by the South Australian Housing Trust – up from the initial 100 homes due to high demand.
Under the scheme, participants pay rent at 75% of the market rate, easing financial pressures and allowing them to save for a deposit. The purchase price is locked in at the beginning of the tenancy, protecting buyers from market fluctuations, and tenants have up to two years to secure finance and complete the purchase.
To qualify, applicants must have rented for at least 24 months, live in South Australia, and not currently own property. Priority goes to those with steady employment, and all candidates undergo pre-qualification to confirm their ability to buy at the end of the rental phase. If unable to proceed with the purchase, tenants vacate the home, allowing an eligible HomeSeeker SA buyer to take up the opportunity.
Nick Champion highlighted the impact of the initiative.
“Today, Sean officially gets off the rental roundabout and onto a pathway to owning his own home,” he said.
Champion added, “A hardworking South Australian, Sean was finding the housing market hard to break into, but with an affordable and fixed price and reduced rent for two years, he can now do just that. Sean is just the first of many South Australians who will use the Government’s support through our Rent-To-Buy initiative to escape the rental market and get into their own home.”
On moving into his new home, Sean reflected on the struggle to buy amid rising costs post-COVID.
“You look at everything since COVID and there was no way I was going to be able to buy a home. When I started out, the bank was saying you need $40,000, then it was $60,000, then it was $80,000. It got to the point where I didn’t care about owning a home anymore, but I saw Rent-to-Buy through the Trust was an option, so I signed up for it. It’s like winning the lottery, but I have to work for it, and I feel better about that.”
Champion also emphasised the wider benefits of the initiative, stating, “This is just another supply-focused initiative that will have a real impact in addressing housing shortages. Sean moves into his new home, meaning his current home will open for someone who needs it.”
By helping long-term tenants transition to homeownership while freeing up more housing trust properties, the Rent-To-Buy initiative demonstrates a forward-thinking approach to South Australia’s housing challenges.
For more South Australians like Sean, the path to homeownership appears a bit more accessible today.
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