The 3 criteria remains::

•    deposit or loan to value
•    affordability and
•    credit rating

We however find that if your affordability and credit rating improves, a bank is quite often more lenient on the LTV.

We thus offer My Budget Fitness

How do we still overcome a deposit requirement – we assume a 12 -18 month r2b Option Period?

1.    Loan to value

a.    We determine the value of the property on signature and provide a certificate to such effect

b.    We again determine the value 12- 18 months later when the option is exercised – quite often the property has increased in value.

(We are aware that the banks conduct their own valuations notwithstanding)

c.    the buyer pays a 9 -10 % rental amount @ the purchase price, plus rates and taxes, compared to the usual 5-6 % rental income,

i.    The higher rental +/- 4 % is then credited to the Purchaser as a deposit paid on transfer.

(If the buyer “walks away” from the option to purchase – he forfeits the monies paid.)

2.    In addition – the buyer has 12- 18 months to get the balance of the deposit together.

Our main focus remains training on affordability and credit rating – as you will see from the attached brochure.

The lack of a deposit remains a major stumble block.

We will not recommend a rent2buy agreement if we can determine the buyer will not be able to get a deposit together during the option period.

A one or two month deposit – based on the rental due – will be required for a rent2buy rental agreement.