Benefits of rent to buy property agreements in South Africa | Legal Articles

 

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Benefits of rent to buy property agreements in South Africa

Rent to buy is an attractive option for any person wanting to buy a property but who simply doesn’t have the necessary starting capital.

How-To-Buy-A-Rent-To-Own-Home

What is rent to buy?

A rent to buy agreement is an arrangement that allows for the rental of a property for an agreed period of time with the option of buying the property before the lease ends.

What are the benefits of rent to buy property?

There are several reasons why this is a good option for anyone who wishes to buy their own home.

  • Start-up costs are low compared to traditional ways of buying property
  • The price of the house is set up front and is fixed. There is no risk of a price increase by the time you are ready to buy.
  • Buy when you are ready. At any time during your rent to buy agreement you are able to purchase the property.
  • You are not obliged to buy the property at the end of your lease agreement. This gives you the chance to test out the house and the neighbourhood before you commit to buying it.
  • You can benefit from market growth. Because the price of the property is fixed, you will gain all the growth the house price.
  • Should you choose to sell the house, you can do so on the open market and any growth in the price of the property will be for your gain.
  • You have time to save for a deposit.
  • You have the chance to build up a healthy credit history.

Additionally, the seller can also enjoy benefits from a rent to own agreement. When renting property to a potential buyer, the chances that they will damage the property is minimal. Therefore, repair and maintenance costs will be kept to a minimum.

Van Deventer & Van Deventer Incorporated – Property Attorneys in South Africa

Before signing any form of agreement, it’s always best to consult with a legal professional. 

We are experts when it comes to property law in South Africa and will gladly assist you with making the decision to enter into a rent to buy agreement. 

Contact us for proper legal advice.

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