Rent to buy - frequently asked questions

What is Rent to Buy?

A rent-to-buy scheme offers the ability to buy a home that a customer initially rents, while saving for a deposit. At the end of an agreed period, the customer – who should have built up enough funds– takes out a mortgage and pays out the owner.

What is the SA Housing Trust’s Rent to Buy scheme?

Rent to Buy is a State Government scheme where eligible buyers can rent their home at a reduced rent before they buy.

125 homes that are under construction under the SA Housing Trust’s Affordable Homes Initiative (AHI) will be rented to buyers as affordable rentals (at 75% of market rent) for one to two years, before buying the home as an affordable home purchase.

You provide the Trust with information about your property needs and they will identify suitable properties for you. Homes vary in size and location, though most are two or three-bedroom townhouses.

This is intended to provide a base two-year affordable rental option (with possibility of a one-year extension) to provide another pathway to assist moderate income key worker households, who are struggling to achieve homeownership, to purchase a home.

Who is eligible?

Criteria for the Rent to Buy program is the same as eligibility criteria for the purchase of a home in the Affordable Home program.

All criteria can be found on the ‘am I eligible to buy an affordable home’ page of the HomeSeeker SA website.

General eligibility:

Aged 18 years or older
live in South Australia
an Australian citizen or hold permanent residency in Australia
have a steady job and/ or are self employed
have rented for a long time (over two years)
do not own any real estate property (in or outside of Australia)
intend to live in the home for a minimum of 6 (six) months from the date of buying and settling the home.

Income limits:

for singles, the income limit is $120,000 per year (before paying tax).
for couples, families and single parents, the income limit is $155,000 per year (before paying tax).

Income calculations included all income sources (e.g. wages, business, Centrelink, child support, investment income, WorkCover payments, income from outside of Australia and superannuation income streams.)

Asset limits:

For singles, asset value must be under $579,500
For couples, families and single parents, asset value must be under $739,500.

Assets include all cash, money held in accounts of financial institutions or online, all real estate property, investments, household and personal belongings, all types of vehicles, life insurance policies and assets outside of Australia. This does not include your superannuation.

Minimum income limits will be set in line with loan serviceability requirements for the purchase of an Affordable Home.

The program will be open to all eligible applicants.

Priority will be given to:

applicants who have been in steady, continuing employment
long-term renters (over two years) who have not transitioned into home ownership and will benefit the most from this program.

How does it work?

Renters would be pre-qualified to test that they meet the criteria and are expected to have the capacity to purchase the property by 2028-29. At the conclusion of the lease term, the pre-qualified tenant would have the first option to buy the home.

If the tenant does not purchase the home, they would vacate the property, and the property would be sold to another eligible buyer through the HomeSeeker affordable home purchase scheme.

By paying a reduced, affordable rent (75% of market rent) for two years, renters will be able to save to purchase their home.

How do I register?

Go to Homeseeker SA website, register your interest, and we will be in touch.

Is this the same as the federal Government Rent to Buy scheme?

No. The Federal scheme gives people an "equity contribution" to purchase a home, of up to 40 per cent of the cost of a new home, or 30 per cent for existing homes. The buyer doesn’t pay rent on the stake owned by the government.

Will I own the property outright?

After a period (one to two years), you can purchase the property. You can choose how to purchase the property, which might include through shared equity.

While I am renting, who is responsible for maintenance and repairs?

Both the landlord and you as the tenant have responsibilities for repairs and maintenance. The landlord is responsible for ensuring the property is in a reasonable state of repair and meets minimum safety standards. The tenant is responsible for maintaining the home in a reasonable condition and informing the landlord of any needed repairs.

Tenants are responsible for repairs needed due to their own actions, such as damaging a window while playing a ball. Tenants are responsible for maintaining the lawn and garden areas, including mowing, weeding, and watering.

Can anyone sign up?

No. You must:

Be a South Australian resident
Earn a moderate income (eg under $150,000 household income)
Not currently own property
Meet HomeSeeker SA eligibility
Be ready to work toward homeownership

Can I assign the sale to a friend or another family member?

No, only those listed on the lease agreement and option to purchase are able to purchase the home. In the event that there is more than one purchaser named and one of which no longer wishes to purchase the home, the other can still purchase the home providing they have the financial means to do so.

Do I have to buy the home after two years?

The intent is that you buy the home, however, if you are unable to settle, the home will be sold through HomeSeeker SA to an eligible buyer.

Can I sell the home after having purchased?

There will be a 24-month caveat on the title that will mean purchasers cannot sell the home within this time unless they obtain written approval from the Trust.

Can a public housing tenant access this?

Absolutely if they meet the eligibility criteria.

Is there support for Aboriginal people to buy a home?

Absolutely if they meet the eligibility criteria.

I have registered online at HomeSeeker for Rent to Buy. What do I do next?

Thank you for registering! Once you have completed your registration, the Housing Trust will carefully review your application to check eligibility and will be in touch via email in the first instance.

We have a family of 5. Will these homes be big enough for us?

The homes in this program currently offer 2 or 3 bedrooms. We encourage you to consider your family’s needs when applying to ensure the home suits your household.

My lease expires in 3 months. How do I know if I will get a Rent to Buy home?

The first homes are expected to be released in August 2025, with the majority available in early 2026.

As with all construction projects, completion dates can sometimes change due to progress on site. While we provide an estimated handover date, this may be subject to change if needed.

The Agent will keep you updated on construction progress.

What types of homes will be offered, and where will they be located?

The program will offer a variety of homes, including walk up apartments, townhouses, and single-storey houses.

All future releases will be communicated directly to those eligible applicants who have registered through the Rent to Buy page on the Homeseeker SA website.

How long is the rental period, and do I need to sign a sales contract at the same time?

If you are offered a home through this program, you will sign a lease agreement for an initial 12 months, with the possibility to extend for a further two 12 months subject to the Housing Trust’s approval. You will also sign a sales contract at the same time, so that you can settle on the home at the end of the lease period.

Rent to buy - frequently asked questions

Frequently Asked Questions