Has anyone done a rent to own their first home?
My partner and I (both mid 20's) want to buy our first home and stop renting.
Our income is good @ $6700 per month plus hubby's usual commission @ about $600 per month.
We have the usual household expenses with 3 children.1 at school and 2 in daycare.
Debts are a personal loan $320p/m, credit card at $200 p/m and a certegy loan of $90p/m.
Once these are paid off (which will take about 6 months for all three) we'd be able to afford $800+ each week for repayments taking into account our current rent. We live in country NSW where the median house price is around the $470K mark for 4bed,2bath.
This would be plenty for a mortgage repayment but we are really shit savers.
We look at our accounts and go "well where did that go" and it's usually on dining out or ordering in type stuff or you know... Christmas lol
Rent to own sounds like a great idea but I'd like to hear from other people who've used this system and what they thought?
Thanks all
5 Replies
Go and buy The Barefoot Investor book and read it. Do as he says and you will be so far ahead. Don't waste your wonderful income!
Agree with the above! The Barefoot Investor changed our lives so much for the better
Do NOT!!!! Rent to own. So many horror stories out there!
With your income, you should be able to save and pay off debt easily!
My partner earns less than you a month and we've saved $100,000 in a couple of years. ($10,000 was an inheritance gift).
If we can, you can too. (We have 2 kids and I'm a sahm).
You need to open a bank account with high interest and not touch it under ANY circumstances. This is your house deposit account.
Then just have a regular savings account that you can use for every day things- rego , gifts etc.
Me and my partner did rent to buy
It was for a two year period.
At the end of the two years we had to go and get a loan to cover the reminder of the mortgage. Our rental was put straight onto the home so essentially it was interest free for 2 years. Look around and do some research first and know all the conditions of the deal first.
Don’t do it. I’m a single parent of 4 working 2-3 days a week. I’ve managed to put away almost 7k since July.
With an income like yours it’d be easy to get a deposit together. You have to tell yourself you’re doing it & get it done.
I don’t even see that money in my account anymore (separate savings account). Even when things come up, I don’t look at that as usable money. I wait until my next pay & go from there.
I have an amount that goes away each pay before I see it, then I pay what ever bills/school things necessary for the fortnight. Once day to day stuff is taken care of I leave myself around $100 for the fortnight, enough for fuel for work & the rest tops up that savings. Some weeks I might only get $20 put away. Other weeks it’s a few hundred.
Set up the separate bank account. Start small & go from there. I have a CBA Netbank saver. No fees, only interest. I can choose to have it hidden from my online accounts so I don’t see it. No cards attached.
When you do decide it’s time (20% deposit is preferable) approach a broker. They will make sure all the t’s are crossed & i’s dotted before you go any further.