Rent To Buy Australia
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Renting to buy a home in Australia is really not that much different to rent to buy systems in other parts of the world. The methods are all very similar and cover areas like instalment terms contracts, lease with option to purchase and seller financing the buyers deposit.
Before you decide to buy or sell a home using a Rent To Buy Australia system, you first need to check what systems are allowed to be used in your state or territory. Some states don't allow instalment terms contracts for instance, so you need to have this information well understood before you leave first base.
These days, the most common form of rent to buy deals that happen in Australia are instalment terms contracts and lease with the option to purchase.
The instalment terms contract is basically a standard contract for sale of land being exchanged between a buyer and seller, with a financing terms (amortisation) schedule, to work out principle and interest payments between the buyer and seller of the property being sold.
The lease with option to purchase deal has the property owners and prospective buyer (or tenant / buyer) enter into a standard residential lease agreement as well as exchange a Call Option Deed (with a contract for sale of land attached in the annexure).
Most people who buy property this way in Australia normally do so, because they don't have enough deposit to satisfy a lender, or they may have some spotty credit history. That is why the rent to buy houses system becomes so popular with people who have these financing issues.
There are problems associated with this method however. Many (not all) investors who practise this form of investing tend to take advantage of buyers needing this method of purchase, because they know their choices are limited. They tend to charge very high interest rates and inflate the property prices they are selling way more then the real market value.
There are better alternatives however, like the DIY Rent To Buy Houses Manual, where you can teach yourself how to setup a rewarding rent to buy deal directly with a seller who wants your help. Visit the home page of this web site to discover more about setting up your own wholesale rent to buy deal.
Also Read: Rent To Buy Sydney, Rent To Buy Brisbane, Rent To Buy Melbourne, Rent To Buy Perth, Rent To Buy Adelaide and Rent To Buy Tasmania.
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