If you want to buy a home and are of renting one or you are new to Australia and finding it difficult to get a loan to buy a home for your self or you have a credit problem, in such cases a rent to buy is the best option. Buying a house in the conventional way may seem out of way as it involves a high price. The banks also refuse to give you loan if your credit rating is not all the good. The high cost of stamp duty can also be a deterrent to buying a house. The rent to buy option is like test driving your own car. You get to live in your own house and test tit out before buying it. When you rent the house you want to buy, you get a time period to save the money for the down payment. You get to move in from day one. A price is fixed for the house, which is applicable when you buy the house. The best way to calculate future buying price is by means of the average long-term growth rate of the suburb with a discount. The upkeep and the repair is now the responsibility of the person renting the house.

Once you plan to rent the house you can sign the lease document. This document will give you the option to buy the house that you're renting. This agreement is also called an option. It is a legal document that gives you the right to buy the house. The estate owner or the house owner on the other hand, is obliged to sell it to you for an agreed price within the timeframe. To obtain this right to buy, you’ll pay an option fee, which is built into the weekly rent. In such cases the weekly rent tends to be much higher than normal rent.  A rent option is mainly target at people who have enough cash flow to pay the weekly rent. If the rent or the Option Fee weekly payment is not paid within 14 days of the due date, then a default occurs. If the payments have not been brought up to date by the time the next payment is due, the seller may terminate the Deed of Option.  The rent option is only an obligation. If one is not in a situation to buy at the end of the time frame or not interested in the house he can come out of the lease option. The only drawback being that he will loose all the deposit made towards the house.

Australia has become a big market for rent to buy properties. There are many real estate agents and home owners who are putting their houses on the rent to buy scheme as they are finding it difficult o sell their houses. This is mainly due to the global recession and the high interest rate levied by the bank.