THINGS YOU SHOULD KNOW

1. A standard residential lease (Residential Tenancy Agreement) is used to give possession to the Purchaser.
   
2. The purchaser pays rent under the lease.
   
3. The purchaser signs an option to purchase the house in 2 or 3 years, at a price fixed up front.
   
4. The purchaser pays for the option, by paying up front and ongoing option fees.
   
5. The purchaser’s payments are credited (as debited) against the deposit payable under the Contract.
   
6. The purchaser may “earn” the part of deposit using “sweat equity”, by carrying out work on the property.
   

1. It is documented by way of a standard Contract for Sale with changes to term and terms for payment of the price and an Instalment Payment Schedule & Credit Code disclosure statement.
   
2. A long completion time of 25/30 years.
   
3. The sale price is fixed up front. A small deposit is paid and the balance is paid by instalments, weekly / fortnightly or monthly, with interest.
   
4. Purchasers move in to occupation immediately.
   
5. Purchasers look after all maintenance & repairs, pay council rates, water rates and insurance.
   
6. Purchasers under Instalment Contracts qualify for First Home Purchaser concessions, including the First Home Owners Grant & Stamp Duty Exceptions.
   
7. Most purchasers refinance (cash out) the Contract within 3 years – because they have built “equity” and a track record of payments.
   
8. The title to the property remains in the name of the owner until the final instalment is paid.