Get Into the Real Estate Market Using Vendor Terms or Rent to Buy Principles – Low place

Get Into the Real Estate Market Using Vendor Terms or Rent to Buy Principles – Low place

Rent to buy homes otherwise known as Vendor terms finance homes has been around for many centuries in England. It came to Australia at the first settlement and has been a concept used in the buy of housing and character for many years until the edges were de-regulated in the 1970s. This method of purchasing houses is nevertheless widely used in board room and corporate biddings for similarities (hotels, resorts, industrial, etc) in Australia, especially in the higher echelon of the business system.Unfortunately for the general public, very little of what is known as Rent to Own homes or rent to buy homes is understood. Many have been led to believe that the only way in which one can buy character is by getting a loan from a bank, which has its downside of high interest and costing additional hundreds of thousands of dollars in interest over 30 years, etc. In the old days (truly not quite that long ago) farms were all bought and sold using Vendor Finance terms (rent to buy), in fact, farms are nevertheless being sold in this manner throughout Australia.

Rent to Buy or Rent to Own houses in Perth Western Australia in addition as in the rest of Australia has regained in popularity with over 20% of all house sales in the Eastern States of Australia being Rent to Buy. It is fast gaining popularity in Western Australia, as an easier and more friendly method of getting into the character Market since the financial collapse of the GFC 2009.


Rent to own your home can be helpful for folk who are not able to buy a home outright in Australia until they have attained Australian residency or citizenship, let alone qualify for a bank loan. By Renting to buy your home the person is able to begin the down payments using a lease with an option to buy agreement for five years. After they have completed their qualifying time for residency, they may then begin to officially own the character.


Unfortunately, many investors have been led to believe that negatively geared character is the best way to manager their investment portfolio. However, due to the current cycle of events of the financial crisis, this is now proving to be a serious handicap for the Mum and Dad investors, in addition as regular investors, who now have to take on third jobs to keep up with the payments which rentals do not bring in. By turning the negatively geared character into a positively geared character you will be making life a lot easier as you continue with your retirement plans. Having the assurance that you will have a positive income to retire on makes this option an enticing one. Waiting for your rental similarities to sell can be a viscous cycle of home opens, false alarms etc. If you have plans to start living now, Rent to Buy is the attractive way to move.

Please observe: If you are struggling with your home mortgage payments or investment rental similarities, don’t wait until it is too late. Look into this option at your earliest.


The positive aspect of using this system is that possible home owners may not have to have a clear credit rating. Unlike the edges, although thorough checks are done on applicants, applicants need not fear applying for a Vendor home.

edges are now very tight at releasing any funds for financing of similarities which has made it very difficult for the average person to buy their own house. The rent cycle is a monotonous existence when families are forced to uproot their possessions and move to another house because the landlord has to sell. Unfortunately, houses are being sold at a rapid rate since the GFC which is causing an upheaval in rental similarities being obtainable for rent.


Basically, a character owner chooses to sell his character for many reasons. The character owner may simply wish to receive his/ her character payments on a fortnightly basis for 5 years instead of as a lump sum payment for various reasons (some mentioned above) or may / may not be facing a personal crisis and needs to sell his/her house quickly and is willing to receive the payments on a monthly basis over a period of 4-5 years instead of waiting for their house to sell which could take many months and in many situations now, years, at a possible loss.

At the end of the three – five year period, the tenant can then take up the Option to Buy character at which time, he/she then approaches their bank to payout the owner of the character. However, during the time of the tenancy, the tenant can earn rent credits to also help to pay down the amount of the end price of the character, in addition as improving the character value with their improvements to the character ( with owner and council approval first applied for) consequently ensuring that there will be near to sufficient equity in the character to allow their bank to give you a loan.

By improving the value of the character, in addition as maintaining rent credits, as appropriate, the incoming tenant/buyer can make improvements to the character to increase the equity of the character for when it is time to take out their own loan. It is up to the incoming buyer to work at it! That is why using the old fashioned Rent to Buy method is so user friendly.


For the SELLER – will be able to unprotected to the price that he/she would need for the sale of the character which can be slightly more than current market provide in some situations and in a slumped market can make sure that he/she is getting a positive income instead of await a buyer which may take months and years to find. It allows the character owner to continue his/her credit position without default consequently allowing him/her to begin a new life, while receiving POSITIVELY GEARED down payments on a monthly basis. It is also another way of looking at it as an investment over 4-5 years achieving more than the current sale of the character.

For the BUYER, this is a great way to begin to closest buy your character without the high interest rates that edges put in. With the owner’s permission, the buyer can enhance the value of the character by improving landscaping, painting, repairs and already renovations (council approval is required). By doing this, it enables the buyer to have a greater opportunity to unprotected to possibly more than the 20% requirement of the bank to ultimately pay off the owner of the character. Strict conditions apply.

The overall journey with purchasing tenants is a very exciting one. It method, that for the first time, perhaps in their complete lives, someone is willing to give them a chance to break the cycle of renting and paying dead money, breaking the cycle of constant upheaval from their friends and family, etc.

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