Statistics show that the average Australian’s susceptibility to home ownership appears to have declined steadily over the past two decades. In 1994, around 71.4% of Australians owned a home, but in 2018 the homeownership rate was just 66.2%, down several percentage points from 1994 figures.
On closer inspection, the consulting firm Rent 2 Buy and his team of specialists were able to identify the problem – the average Australian could afford the mortgage repayments but not the initial deposit. Research shows that it takes Australians ten years to save for their security deposit, and in the time it takes to save they have already spent $260,000 on rent. Additionally, rising house prices have exceeded the average Australian’s ability to save, blocking their path to the housing market.
Most people think rent-to-buy is the best solution. Unfortunately, lease-to-own agreements expose the buyer to several risks, including the sellers pricing up, changing their minds, or filing for bankruptcy that loses the assets. Luckily, that’s not how Renting 2 Buy works, as working with them guarantees full ownership of the property from day one.
Renting 2 Buy sees all of these needs and risks and has developed a passion and a system to help people who cannot afford real estate deposits be able to buy their own home from day one. The team helps clients go through budgeting and credit repair programs that prepare them for loan approval.
According to the firm, its team of real estate agents, builders and mortgage brokers were able to help clients 90% of the time acquire their properties almost immediately. Unsurprisingly, the company’s high success rate has seen it grow its revenue by 300% from 2020 to 2021. Since its launch, Renting 2 Buy has served over 380 customers, and the company is looking to help 200 additional customers in 2022.
Renting 2 Buy hopes to reverse the downward trend in homeownership over the next two years by helping Australians develop good strategies, make better financial decisions and stop paying off their landlord’s mortgage .
News Baden Bower