The South Australian government has unveiled a new rent-to-buy initiative aimed at assisting long-term tenants in making their transition into home ownership. This announcement was part of the government’s state budget reveal, signalling an effort to facilitate access to the property market for eligible residents.
The scheme will focus on newly constructed, affordable housing, particularly in areas such as Woodville Park. Participants in the program will sign an intent-to-buy agreement, with property prices set at $517,000. Renters enrolled in the initiative will pay 75% of the current market rental rate, with the remainder—25%—designated to be saved towards a deposit for the home. After a two-year period of residence, participants will have the first option to purchase their home.
Housing Minister Nick Champion has highlighted that there are incentives in place for participants to commit to the scheme, emphasising that the properties cannot be sold for profit during the two-year occupancy period. “You’ll have to live in it for two years,” he stated. The first stage of this policy will involve the construction of 100 homes in Adelaide, indicating a substantial step towards increasing housing availability.
Feedback from potential buyers has been constructive; Savinna, a house hunter, noted that such initiatives break down barriers that might have hindered her ability to buy a home. However, the opposition has voiced support for the idea, albeit expressing concerns that the scheme may not comprehensively address the housing crisis. Opposition spokeswoman Michelle Lensink remarked, “I don’t think this will be a silver bullet to fix the housing crisis.”
Similar rent-to-buy schemes exist in Victoria and New South Wales, while South Australia previously had a comparable programme that was discontinued in the 1960s. Champion further noted the unique opportunity this initiative presents, stating, “Effectively, you’ll be setting the price when you move in, which means when you come to buy it, prices will have moved up.” The construction of these homes is anticipated to commence within the next six months, marking a significant move towards enhancing home ownership opportunities in South Australia.