The National Credit Act has made it difficult for potential home owners to get the loans they need to finance the purchase of a new property. This inability to get a loan makes it more difficult for these people to enter the housing market. Both first time buyers and the self-employed are particularly affected by the Act. Reports show that close to 50 percent of employed bond applicants are declined each month. An even more startling statistic is the 58 percent of self-employed applicants who are denied home loans.
A new concept is revolutionizing the South African property market. The introduction of a new Rent2Buy program in the area will provide buyers and sellers with an alternative way to conduct transactions. Meyer de Wall is the founder of Rent2Buy as well as a practicing attorney. According to De Wall, “We negotiate agreements between potential buyers and sellers whereby the buyer concludes a rental agreement with a seller with an option to purchase the property by a certain date and at an agreed price.”
Rent2Buy works by assuring the seller a set price for the property in the future. The buyer of the property pays rent in an amount that is approximately equal to the buyer’s future bond repayment. A unique aspect of the rent to buy transaction is that buyers are able to take immediate ownership of the property. Because they are taking over responsibility for the property, they are able to treat the home like it is their own and make changes accordingly. They will also be responsible for any rates, taxes, levies and maintenance.
“The idea is that the buyer uses the option period of the contract to prove his affordability and creditworthiness to the bank,” De Wall explains. “This way the buyer can eventually secure a loan to purchase the property. In addition to using the time to save for a deposit, he also shows he can afford the property and be disciplined by paying rent regularly and on time.”
Rent2Buy launched a home owner education programme with the goal of training and mentoring bond applicants and helping them succeed at securing a home loan. The My Budget Fitness programme will improve an applicant’s credit rating and put him on the path to being financially fit for a loan.
The programme was developed in association with Solly Molefe of Setsmol Training. “The programme is unique as it assigns personal budget trainers to applicants and uses innovative software to help home loan applicants track their progress and reach a financially fit state,” Molefe says. “Through mentorship, education and month-by-month guidance, home loan applicants reach affordability and clear their credit record as required under the National Credit Act.”
The My Budget Fitness Programme is available to anyone looking to secure a home loan, not just Rent2Buy customers. The hope is that allowing everyone access to this type of program will improve the ability of anyone seeking a home loan to achieve their goal of being financially fit to be approved for a bond.
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Rent2Buy Agent Network program will increase your experience, value and potential by being a member of our agent network program. Our Agent Network Program will allow you, the real estate agent, to be in direct contact with our buyers and sellers. You will have the opportunity to be the EXCLUSIVE AGENT in your TERRITORY. We only allow one agent per zip code, so you will not have any competition from other real estate professionals in your EXCLUSIVE area. Sign up now and receive the following information.
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In September, a Waterford house builder held a first-time buyers’ event that was wildly successful. The event, held at the Greenfields development on the Old Tramore Road was packed with visitors. New-home buyers were offered purchasing help and mortgage advice.
The event also marked the launch of the new rent2buy program by Frisby Homes. The rent2buy initiative helps people buy a home by allowing them to rent it for a few years and then buying it after the prearranged time-period with an accumulated deposit.
Sylvia Doyle, sales manager, said that “feedback for the rent2buy scheme was also very positive.” Doyle reported that “two buyers bought using it. They like the idea of renting, but without the ‘dead’ money. It’s also easy to use and buyers don’t need a 100 per cent mortgage.”
To read the original article in Waterford Today, click here.
“Home shoppers now have an innovative new path toward a home purchase.” – Moti Kahana, founder of Rent2Buy
(WHIPPANY, N.J.) – Rent2Buy.com, the world’s eMarketplace for renting or leasing nearly anything with the option to buy, has updated Rent2Buy Real Estate with more than 2,310,380 homes.
Rent2Buy Real Estate offers a full inventory of real estate listings across the United States. The easy-to-navigate, live server includes real estate data and seller contact info in the categories of foreclosure, bank owned, homes for sale and for sale by owner
A portion of the homes listed on Rent2Buy Real Estate are eligible for Rent2Buy’s unique “try-before-you-buy” program, a powerful new financing alternative for property seekers on the path to home ownership.
“Home shoppers now have an innovative new path toward a home purchase,” says Moti Kahana, founder of Rent2Buy.
The Rent2Buy Real Estate system allows future homeowners to rent a property with the goal to apply the rental fee as a down payment toward the purchase of that home. Or they can walk away.
For Americans with credit scores below 620—nearly one-third of the population—getting an offer of even one conventional loan quote by lenders is rare, according to loan-request analysis by Zillow.com.
“Rent2Buy Real Estate gives future homeowners the opportunity to prove their creditworthiness by paying on time and then taking ownership of the property,” says Kahana. “Conversely, sellers are exposed to a larger base of potential homeowners who are motivated to buy.”
Click here to browse the new Rent2Buy Real Estate site. Check back soon, as more and more homes are added to the Rent2Buy inventory.
To read the article on RTO online, click here.
The rent-to-buy model is intended to afford more people the opportunity to own their own home. Research by CB Richard Ellis indicates that the rent-to-buy initiative does not just benefit potential homeowners. Their research indicates that rent-to-buy real estate has the potential to unlock the housing market.
Rent-to-buy uses the private rental sector as an intermediate stage in the process of purchasing a home. This intermediate step allows both homebuyers and seller to sidestep financial constraints. This is particularly helpful for first-time buyers, and also serves as a way to allow developers to exit a residential project.
In the real estate sector, the rent-to-buy process lets prospective home buyers move into a home as a private rental tenant. They then have the option to buy the property at a pre-agreed price at a future date. Rent on the property acts as a form of savings for the buyer, as it is used to offset against the deposit at the time of purchase. The rent paid to the seller during the rental period can be used to service debt until the sale is made.
According to Jennet Siebrits, head of residential research at CB Richard Ellis, “The transfer of new build homes to the private rented sector has become a more viable and obvious exit strategy for developers because of the subdued sales environment. Rent-to-buy is an innovative solution that uses private rental as a facilitator to unblock both ends of the development equation.
“The flexibility of the model is appealing as it can be adjusted to suit the individual circumstances of the developer or buyer. However, there is a trade-off between the length of the lease and the size of the deposit.
“A longer lease will enable the buyer to save a larger deposit, but the buyer must ensure the home has an extended appeal. Developers can reduce risk by considering an upfront, non-refundable deposit of one or two per cent in case the sale falls through.”
To read more, click here.
The following image is what the search result will look like for Rent2Buy autos.
You can enter a make, model or zip code in the search bar and search the site this way. You have the option to search for rent to buy, rent to own, lease to buy, or make an offer autos. You have total control of your search, and can design your search based on the type or types of transaction you desire.
There is a section at the top of the page that lists the top offers from the main rental car companies. You have the option to choose the type of vehicle you are searching for from the drop down menu, and take a look at the top offers from the rental car companies listed in the chart.
After you have made your search and the search result is displayed, it will be shown just as it is in this slide. A list of autos will be displayed, along with a picture of each, specifications, pricing, and the rental agency with which each is associated.
The blue tabs listed across the screen above the auto search results break down your search into various categories. You can display all listings at once, just rent to buy listings, just rent to own listings, just lease to buy listings, just make an offer to dealer listings, or just make an offer to owner listings. Next to each type of listing, there will be a number in parentheses, indicating how many results this type of search yielded.
Users can check or uncheck the various boxes on the left side bar in order to tailor their search results to their specific needs. You have to option to choose between airport or non-airport locations, and select from different car classes, rental agencies, car makes, car options, and more.
Coming in 2011, rent2buy will be the online marketplace providing you with access to rental inventory in your area. On rent2buy, you will be able to compare and see available inventory in and around your zip code. The new rent2buy automotive section will enable you to make educated decisions about who you want to do business with by allowing you to choose which rental car company you want to rent to buy from.
The rent2buy automotive platform will allow you to compare pricing between rental companies. You can then make an informed decision about which company you want to use to ‘try it before you buy it.’
The image below is what the rent2buy search result page will look like. Please give us feedback.
The rent2buy automotive marketplace is in essence, a virtual auto mall. Auto malls come about when car companies set up stores near each other so that they can defer the cost of getting you, the customer, to visit their location. The same goes for the online marketplace. The rent2buy automotive section will showcase various rental car companies. These companies want to have their inventory searchable on the rent2buy platform so that they can best reach you; it benefits rental car companies to be listed amongst all competing companies. You, the customer, also benefit from the comprehensive online listing of all rental car companies; all of the information and inventory you need to make the best possible decision about which car to try before you buy is right at your fingertips.
For rental car companies, having their company listed on the rent2buy site means less money spent on advertising and driving customers to their own site. Like an auto mall, it allows them to spend less money on marketing overall. Instead of one company spending more money, every company can spend less on marketing but get more traffic because everybody is helping in a joint marketing effort.