RENT2BUY & My Budget Fitness


With the recent economic rescession that affected the country’s economy overall and specifically the property market and with the enactment of the National Credit Act and its stringent requirements, creditors have been forced to become more strict and hesitant in entering into credit agreements. As a result more bond applications, like other similar credit agreements are being declined.

It is for this reason, amongst others, that Meyer de Waal (Director of Oosthuizen & Co Meyer de Waal) and his team founded and designed the Rent2Buy scheme designed specifically for our market. Rent2Buy is an innovative scheme designed to assist all potential home owners who are unable to purchase property in the conventional manner and as a result is widening the property market.

How it works

  • The Rent2Buy team negotiates agreements between potential buyers and sellers whereby the buyer and the seller enter into a lease agreement, affording the potential buyer the option to purchase the property at the end of the lease and at a certain agreed price.
  • The potential buyer of the property pays a monthly rent in an amount that is approximately equal to his future bond repayment.
  • Rent2Buy does not operate in the same manner as a normal commercial agreement in which the potential buyer leases a property, with the option to purchase the property upon the termination of the lease. Unlike the conventional lease with the option to purchase, under Rent2Buy, the parties agree to the purchase price of the property upon them entering into the lease agreement. Therefore, even with the fluctuation of the property market, the value of property in question shall remain the same and not vary in accordance with the market at the time when the potential buyer exercises his option to purchase.

Benefits of Rent2Buy

  • Purchase price of the property is agreed upon the parties entering into the agreement;
  • The potential buyer upon entering into the agreement will move onto the property and enjoy/ use it as if he is already the owner (step into the shoes of the owner)- is treated as if he was the owner and not a mere lessee;
  • The potential buyer will bear the responsibility of maintaining the property and making all the relevant payments with regards to the property i.e. all rates and levies; thus relieving the seller of all these responsibilities;
  • The potential buyer is given time to sort out his credit and work on clearing up his debts, thus establishing a good credit record;
  • The seller, even if the potential buyer had to back out of the agreement, gets to keep the non-refundable deposit and during the leasing period, has a passive income (the monthly rental payments)

Therefore both the potential buyer and seller benefit.

Rent2Buy launched a home owner education programme with the goal of training and mentoring bond applicants and helping them succeed at securing a home loan. The My Budget Fitness programme is designed so as to help improve an applicant’s credit rating and thus putting him on the path to achieve the financial status required to get a loan approved.

Rent2Buy was developed in association with Solly Molefe of Setsmol Training. “The programme is unique as it assigns personal budget trainers to applicants and uses innovative software to help home loan applicants track their progress and reach a financially fit state,” Molefe says. “Through mentorship, education and month-by-month guidance, home loan applicants reach affordability and clear their credit record as required under the National Credit Act.”

The My Budget Fitness Programme is available to the public at large, anyone looking to secure a home loan, and not just to Rent2Buy customers.  The hope is that by allowing everyone access to this type of program, will result in the financial improvement of anyone seeking a home loan, thus making them fit to be approved for a bond.

Please do visit our Rent2Buy website for more details: . Alternatively, contact our offices for more information and/or assistance (details on the firm’s website).


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