South Australians who previously owned a home but have spent the past decade renting could soon have another opportunity to enter the property market, with the State Government expanding its Rent To Own program to include 300 additional homes.
The next stage of the scheme will focus on first homebuyers and a new category of eligible purchasers known as ‘re-starters’, people who once owned property but have not done so for at least 10 years.
The expansion is designed to help long-term renters who have struggled to return to home ownership following circumstances such as separation, financial setbacks or changes in their personal lives.
Under the Rent To Own program, successful applicants enter into a sale contract and lease agreement at the same time, allowing them to rent their future home at 75 per cent of market rent for up to two years.
The purchase price is locked in from the beginning, giving participants time to save towards a deposit while paying reduced rent. Those who are financially ready can also purchase their home earlier.
Planning and construction are now underway for the next 300 properties, following the allocation of all 125 homes in the program’s initial pilot.
Of those first 125 purchasers, 114 are first homebuyers, while 117 previously rented in the private market. Participants range in age from 21 to 61, demonstrating the scheme’s reach across different stages of life.
The pilot also includes purchasers who previously lived in public or community housing, as well as people registered for housing assistance.
So far, 85 participants have moved into their homes, with the remaining purchasers preparing to make the transition.
Housing and Urban Development Minister Nick Champion said the expansion recognises that people’s housing circumstances can change significantly throughout their lives.
“Life doesn’t always go to plan. A separation, a business that didn’t work out or a change in circumstances can see people lose the home they worked hard for and find themselves stuck on the rental roundabout for years.”
“Rent To Own can give these South Australians a genuine second chance to get back into home ownership.”
The additional homes form part of the State Government’s broader $1.3 billion commitment to deliver 2,000 Rent To Own properties over eight years, with funding support from the Federal Government.
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