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Your rent can buy you this Midrand property

Glen Acre resize

Prospective home buyers in Midrand can secure their new home in Glen Acres Park Estate today, without first needing to qualify for a home loan.

This is made possible through a unique agreement between Rent2buy and G5 Properties where three different unit types are available to buy from R845,000.

“We realised that the Glen Acres Park Estate development situated in Austin Road in Midrand is perfect for home buyers who need to get their foot in the door, so, together with Rent2buy, we made available three types of units,” says Justin Smith, sales and marketing manager of G5 Properties.

The demand for homeownership is high across South Africa, as it provides security of tenure, can be used to access financing for education, and often delivers a return once sold.

But since the National Credit Act was implemented in the latter half of the previous decade, financial institutions have been forced lend more responsibly – and at times, overly conservative. Today, it is not uncommon for prospective home buyers to be required to put down a deposit of between 10% and 20% of the purchase price before bond approval is granted.

But what if my rent could help me?


“We realised that not every home buyer has a large deposit to put down from the start, but if a home buyer is given the opportunity to secure a property to buy and the purchase price is ‘frozen’ for a year or two, then the buyer can move into the home to purchase, rent it for a year or two, and then gradually build up a bigger deposit to assist with an easier application for a home loan at the end of the one- or two-year period,” says Meyer de Waal, a conveyancing attorney who has actively developed and fine-tuned the Rent2buy concept over a period of 11 years. “The bigger the deposit you have when you sign the Rent2buy agreement, the easier it will be to buy your property.”

But is this easier said than done? Not if you benefit from a price freeze.

PRICE FREEZEfrozen house

For a one-year Rent2buy “price freeze”, a deposit equal to a two-months’ rental is required; to freeze the price for a two-year period, a deposit of 7% of the purchase price is required.

With Midrand’s average price being R4,589m, according to Property24, and property prices increasing by just less than 7.4% in the Midrand area, getting your foot in the door with a one- or two-year price freeze can be a massive opportunity for a home buyer, says de Waal.

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What does it look like on paper?

1-YEAR PRICE FREEZEGlen Acre C03

  • A R16,900 deposit will secure you a 2 bed, 1 bath unit with 1 carport of 65m², at a purchase price of R845,000.
    • The monthly rental will be R8,450 and the Rent2buy purchaser will also pay levies, rates and taxes and electricity used.
    • R800 per month of the rental amount will also be credited towards the savings towards a deposit.
    • Minimum income required per month is R28,500
  • A R19,240.00 deposit will secure you a 2 bed, 2 bath unit with 1 carport of 74m², at a purchase price of R962,000.
    • The monthly rental will be R9,620 and the Rent2buy purchaser will also pay levies, rates and taxes and electricity used.
    • R900 per month of the rental amount will also be credited towards the savings towards a deposit.
    • Minimum income required per month is R32,000
  • A R22,000 deposit will secure you a 2 bed, 2 bath Unit with 1 carport of 85m², at a purchase price of R1,105,000.
    • The monthly rental will be R11,000 and the Rent2buy purchaser will also pay levies, rates and taxes and electricity used.
    • R1,000 per month of the rental amount will also be credited towards the savings towards a deposit.
    • Minimum income required per month is R35,000

2-YEAR PRICE FREEZEGlen Acre C05

  • A R26,000 deposit will secure you a 2 bed, 1 bath unit with 1 carport of 65m², at a purchase price of R845,000.
    • The monthly rental will be R9,800 and the Rent2buy purchaser will also pay levies, rates and taxes and electricity used.
    • No part of the rental will be allocated towards the savings for a deposit, as the price is frozen for 2 years
    • Minimum income required per month is R28,500
  • A R31,100 deposit will secure you a 2 bed, 2 bath unit with 1 carport of 74m², at a purchase price of R962,000.
    • The monthly rental will be R11,135 and the Rent2buy purchaser will also pay levies, rates and taxes and electricity used.
    • No part of the rental will be allocated towards the savings for a deposit, as the price is frozen for 2 years
    • Minimum income required per month is R33,000
  • A R38,000 deposit will secure you a 2 bed, 2 bath unit with 1 carport of 85m², at a purchase price of R1,105,000.
    • The monthly rental will be R12,800 and the Rent2buy purchaser will also pay levies, rates and taxes and electricity used.
    • No part of the rental will be allocated towards the savings for a deposit, as the price is frozen for 2 years
    • Minimum income required per month is R36,000

Terms and conditions apply and all applications are subject to a financial and credit due diligence check.

GLEN ACRES PARK ESTATE DEVELOPMENTGlen Acre C04

The Glen Acres Park Estate residential development is a brand-new development in Midrand and is located in a security estate boasting beautiful park-like settings.

The development boasts 24-hour security, fibre to the home internet, a clubhouse, swimming pool, tennis court, DStv over Fibre, and is located close to the Midrand Gautrain Station and is on the Gautrain Bus route.


Step  inside

2-bed, 2 bathroom

3-bed, 2 bathroom


Estimated occupation date for phase 1 is 1 May 2018.


For more information – contact Juanita juanita@mybondfitness.co.za or Meyer de Waal meyer@mdwinc.co.za 083 653 6975, (021) 461 0065


To get started with a free online Rent2buy credit & affordability calculation, click here to register

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david.steynberg@gmail.com

David A Steynberg, managing editor and director of HomeTimes, has more than 10 years of experience as both a journalist and editor, having headed up Business Day’s HomeFront supplement, SAPOA’s range of four printed titles, digimags Asset in Africa and the South African Planning Institute’s official title, Planning Africa, as well as B2B titles, Building Africa and Water, Sewage & Effluent magazines. He began his career at Farmer’s Weekly magazine before moving on to People Magazine where he was awarded two Excellence Awards for Best Real Life feature as well as Writer of the Year runner-up. He is also a past fellow of the International Women’s Media Foundation.

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