The dream of being a homeowner is shared by millions across South Africa’s property market. With beautiful homes and stunning residential estates springing up in some of the most sought-after suburbs in the country, the race is on to secure a private residence one can be proud to call home. The rental market in Cape Town is an exciting landscape filled with opportunities for renting to own. This involves living in a property upon terms and conditions agreed upon by the owner, with the intention of buying once the lease agreement has ended. The path to becoming a homeowner in this way can prove to be the simpler choice, eliminating a lot of the guesswork of buying a new home.
A refined lease agreement
The rent to own model offers prospective home buyers the chance to save up on funds, and afford the myriad of additional costs associated with purchasing a residential property. Things like transfer duties, bond registration, homeowners insurance, moving company bills etc all add up to a significant amount. With a traditional rent-to-own lease agreement, the buyer signs up to own the home after these costs are paid during the leasing period. A fee is added to the monthly rental amount that goes toward the down payment of the property. The goal of this is for the buyer to have a minimal amount owing towards the deposit and purchase price. This is a fantastic way to make homeownership more accessible.
Get a feel for your future home
Renting to own offers you the unique opportunity to live in the home you want to purchase. It gives you the chance to experience the area in-depth and decide if this is the right fit for you and your lifestyle. By immersing yourself in a specific area and living in a leased property, you are more able to think ahead and see yourself living in Cape Town long-term. Depending on the contract you have with your landlord, it also offers the choice of having maintenance/repairs done under your lease agreement. This greatly lessens the financial pressure on the buyer and your landlord may be willing to hand over a refurbished home at an adjusted price. Using your calculations, this may prove to be the cheaper option.
Considered finances = greater return on investment
Renting to own can be a great benefit to buyers. Once you’ve agreed upon a price and have locked the deal in, you are entitled to purchase at the same price, even if the value increases. This can mean a fabulous deal for you if the property increases in price in future, alternatively it can also mean you will get the short end of the stick if the value decreases. Whichever way you look at it, as long as you maximise your renting period and commit to owning this home under relaxed terms and conditions, you are in a better position than most buyers. Remember, your lease agreement can span a tailored period suitable to meet the financial requirements of eventual ownership.
The pipeline of luxury rentals to owning a sought-after home
When money is no object, buyers can rent a home for extended periods under a standard lease agreement and submit an offer to buy whenever they feel ready. This attracts high-quality buyers who prioritise luxury and convenience above all else. They are ready for high-end households with all the bells and whistles and are willing to pay the price. Cape Town is home to some of the best properties in the country, where you can truly enjoy the journey of renting-to-own dream homes in one of the most cosmopolitan cities in the world. DG Properties has a list of available properties in safe suburbs for you to choose from. Get in touch with us today.
