Thousands of renters will be able to save deposits and purchase homes through a multimillion-dollar program pitched to voters ahead of a state election.
South Australian Premier Peter Malinauskas announced Labor's rent-to-own policy on Wednesday, aiming to deliver 2000 homes over eight years through a $413.5 million state-federal investment.
“Our rent-to-own policy will see people who are stuck in the rental market being able to move into a registered property,” he said.
“They will then have their rent fixed at 75 per cent of the market rent, which, on average, saves them around 120 bucks a week.”
The price of the home will be fixed when they move in to provide a degree of immunity from price escalation that would otherwise deprive them from the ability to own a property, the premier said.
Renters will have two years to purchase the homes, with an option for a third-year extension.
If the renters don’t buy the home in this time frame, it will be sold to the private market.
"We partner with builders … and we find strategic parcels of land where we can get the product built at a high-quality finish and then to the market as quickly as possible," Mr Malinauskas said.
The policy is an expansion of an “incredibly popular” 2025 pilot program involving 125 homes.
Labor has announced a series of housing policies this week, ahead of the March 21 state election, including a $1 billion housing Fast Track program where a re-elected government would find strategic infill sites and accelerate development.
“On Monday, we announced our major housing skills package, yesterday, we announced reform for renters, and today, we announced a rent to home ownership program,” Mr Malinauskas said.
It was "evidence of not just a government throwing money at a problem," he said.
"(We are) coming up with a sophisticated model that allows us to deploy the resources of government to result in a perpetual degree of growth in the housing market in the areas where it is most needed.”
Elise Whelan said she had just been approved for a rent-to-buy property at Seaford, in Adelaide’s south.
“I found myself in the private rental market in 2023 after leaving a DV relationship. I lost my home and lost everything, and had to start from scratch,” she said.
“Being stuck in the rent track with rent increases, the thought of home ownership was just getting further further out of reach.”
