Rent-to-buy is a concept which allows homeowners to pay off their properties without getting a home loan.
A local business, called Rent2Buy, is popularising the trend in South Africa.
Meyer de Waal, the founder of Rent2Buy, explains how the business model works.
De Waal, a conveyancing attorney, says they assist candidates who have been declined home loans by the banks.
He explains that affordable Rent2buy units now available areas ranging from Bloemfontein in the Free State to Parklands and Blue Downs in the Cape.
We can pre-qualify a homebuyer. The fund goes out and buys the property on behalf of the potential buyer.— Meyer de Waal, the founder of Rent2Buy
They rent it for two years, we groom the homebuyer to become a good candidate.— Meyer de Waal, the founder of Rent2Buy
We're actually like replacing the banks completely.— Meyer de Waal, the founder of Rent2Buy
We are picking up the clients that the banks don't want to help.— Meyer de Waal, the founder of Rent2Buy
Listen to the discussion on The John Maytham Show:
This article first appeared on CapeTalk : Home loan rejected? That's where Rent2Buy comes in