Statistics show that the average Australian’s predisposition toward homeownership appears to have dropped steadily in the past two decades. In 1994, approximately 71.4% of Australians owned a home, but in 2018, the homeownership rate was only at 66.2%, dropping several percentage points from 1994 figures.
Upon closer inspection, consulting firm Renting 2 Buy and its team of specialists were able to pinpoint the problem—the average Australian could afford the mortgage repayments but not the initial deposit. Research shows it takes Australians ten years to save up for their home deposit, and in the time it takes to save, they’ve already spent $260,000 on rent. Furthermore, the rising prices of houses outpaced the average Australian’s ability to save, blocking their path to the housing market.
Most people think the best solution is to rent to buy. Unfortunately, rent-to-purchase arrangements subject the purchaser to several risks, including vendors rising prices, changing their minds, or filing for bankruptcy which forfeits the assets. Fortunately, this isn’t how Renting 2 Buy works since working with them assures full ownership of the property from day one.
Renting 2 Buy sees all these needs and risks and has developed a passion and system to help people who can’t afford home deposits be able to purchase their own homes from day one. The team helps clients go through budgeting and credit repair programs that set them up for loan approvals.
According to the firm, its team of real estate agents, builders, and mortgage brokers were able to help clients 90% of the time to acquire their properties almost immediately. Unsurprisingly, the firm’s high success rate has led it to grow its revenue by 300% from 2020 to 2021. Since its launch, Renting 2 Buy has served more than 380 clients, and the firm is looking to help 200 more clients this 2022.
Renting 2 Buy hopes to reverse the homeownership downward trend in the next couple of years by helping Australians develop good strategies and make better financial decisions and stop paying off their landlord’s mortgage.