The Australian dream of owning a home has become a reality today for the first Rent-To-Buy tenant Sean, as he gets the keys to his new home.
Sean will first rent the home at an affordable price before purchasing it under the Malinauskas Labor Government's Rent-to-Buy initiative.
Housing Trust tenant Sean is a long-term renter who had given up on home ownership but now looks forward to his housing future with optimism.
The Rent-To-Buy Affordable Housing Initiative was launched to create a pathway for eligible long-term renters to buy one of 100 homes currently under construction by the South Australian Housing Trust.
The Malinauskas Government has since expanded the number of homes to 125.
Under the Rent-To-Buy scheme, Sean will move in and pay a reduced rent at 75% of market rate before he purchases the home – giving him greater capacity to save money.
Eligible buyers will rent the home at the reduced rate for up to two years before they need to purchase, giving them greater capacity to save for their home. The purchase price is fixed at the time of renting meaning they are protected from any further increases in the property market when it comes time to buy.
Eligible buyers are people who have been renting for a minimum of 24 months, are South Australian residents, do not currently own a property and meet the HomeSeeker SA eligibility with priority given to people who have been employed long-term.
They must be South Australian residents, not already be homeowners, and they must meet the same eligibility criteria set under the State Government-backed affordable homes sales program, HomeSeeker SA. Renters are pre-qualified to determine if they have the capacity to purchase.
If they don't purchase the home at the end of the rental period, they will be required to vacate and the property will be sold to another eligible HomeSeeker SA purchaser.
As put by Nick Champion
Today, Sean officially gets off the rental roundabout and onto a pathway to owning his own home.
A hardworking South Australian, Sean was finding the housing market hard to break in to, 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.
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.
As put by Sean Brown, Rent-To-Buy purchaser
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.
