Rent2buy apartments selling in Midrand from R845k

Prospective home buyers in Midrand can secure their new home in Glen Acres Park Estate today, without first needing to apply for a home loan.

This is made possible through a unique agreement between Rent2buy Finance and G5 Properties, where three different unit types are available to buy from R845 000 under a Rent2buy Finance concept.

One of the 85sqm two bedroom, two bathroom units Glen Acres Park Estate.

“We realised that the Glen Acres Park Estate development situated in Austin Road in Midrand is perfect for home buyers who need to get their foot in the door, so together with Rent2buy, we made available three types of units,” says Justin Smith, sales and marketing manager of G5 Properties.

The demand for homeownership is high across South Africa, as it provides security of tenure, can be used to access financing for education, and often delivers a return once sold.

But since the National Credit Act was implemented in the latter half of the previous decade, financial institutions have been forced to lend more responsibly and, at times, overly conservatively.

One of the 74sqm two bedroom, two bathroom units in Glen Acres Park Estate.

Today, it is not uncommon for prospective home buyers to be asked to put down a deposit of between 10% and 20% of the purchase price before bond approval is granted. Add to this the fact that bond registration and attorneys’ fees need to be paid, over and above the deposit, all the while paying rent, and it’s easy to understand why so many South Africans are unable to purchase their own homes.

To illustrate, in general an affordable apartment in the Midrand area sells for R845 000. This translates into a required deposit of between R84 500 and R169 000, while transfer costs amount to R21 300 and bond registration fees R20 800. In total, a buyer will be expected to have between R126 600 and R211 100 in pocket before buying.

One of the 65sqm two bedroom, one bathroom units Glen Acres Park Estate.

With Rent2buy finance, a deposit of only R26 000 for a Glen Acres unit is required.

How can my rent help me?

“We realised that not every home buyer has a large deposit to put down from the start, but if a home buyer is given the opportunity to secure a property to buy and the purchase price is ‘frozen’ for a year or two, then the buyer can move into the home to purchase, rent it for a year or two, and then gradually build up a bigger deposit to assist with an easier application for a home loan at the end of the one- or two-year period,” says Meyer de Waal, a conveyancing attorney who has actively developed and fine-tuned the Rent2buy concept over a period of 11 years.

“The bigger the deposit you have when you sign the Rent2buy agreement, the easier it will be to buy your property.”

But is this easier said than done? Consider the benefits of getting your foot in the door and the “price freeze”.

Price freeze

For a one-year Rent2buy “price freeze”, a deposit equal to two months’ rental is required, to freeze the price for a two-year period, a deposit of around 3% of the purchase price is required.

With Midrand’s average price being R870 000 for flats and apartments, and property prices increasing by 5% per year in the Midrand area, getting your foot in the door with a one- or two-year price freeze can be a massive opportunity for a home buyer, says de Waal.

How does it look on paper?

One-year price freeze:

A R16 900 deposit will secure you a 65sqm two bedroom, one bathroom unit with one carport at a purchase price of R845 000.

• The monthly rental will be R8 450 and the Rent2buy purchaser will also pay levies, rates and taxes and electricity used.

• R800 per month of the rental amount will also be credited towards the savings towards a deposit.

• Minimum income required per month is R28 500.

A R19 240 deposit will secure you a 74sqm two bedroom, two bathroom unit with one carport at a purchase price of R962 000.

• The monthly rental will be R9 620 and the Rent2buy purchaser will also pay levies, rates and taxes and electricity used.

• R900 per month of the rental amount will also be credited towards the savings towards a deposit.

• Minimum income required per month is R32 000.

A R22 000 deposit will secure you an 85sqm two bedroom, two bathroom unit with one carport at a purchase price of R1.105 million.

• The monthly rental will be R11 000 and the Rent2buy purchaser will also pay levies, rates and taxes and electricity used.

• R1 000 per month of the rental amount will also be credited towards the savings towards a deposit.

• Minimum income required per month is R35 000.

Two-year price freeze:

A R26 000 deposit will secure you a 65sqm two bedroom, one bathroom unit with one carport a purchase price of R845 000.

• The monthly rental will be R9 800 and the Rent2buy purchaser will also pay levies, rates and taxes and electricity used.

• No part of the rental will be allocated towards the savings for a deposit, as the price is frozen for two years.

• Minimum income required per month is R28 500.

A R31 100 deposit will secure you a 74sqm two bedroom, two bathroom unit with one carport at a purchase price of R962 000.

• The monthly rental will be R11 135 and the Rent2buy purchaser will also pay levies, rates and taxes and electricity used.

• No part of the rental will be allocated towards the savings for a deposit, as the price is frozen for two years.

• Minimum income required per month is R33 000.

A R38 000 deposit will secure you an 85sqm two bedroom, two bath unit with one carport at a purchase price of R1.105 million.

• The monthly rental will be R12 800 and the Rent2buy purchaser will also pay levies, rates and taxes and electricity used.

• No part of the rental will be allocated towards the savings for a deposit, as the price is frozen for two years.

• Minimum income required per month is R36 000.

Terms and conditions apply, and all applications are subject to a financial and credit due diligence check.

The Glen Acre Park Estate residential development is a brand-new development in Midrand.