‘Unrent’ scheme promises path to homeownership but experts urge caution

Struggling tenants are being offered a new route to homeownership that will mean their rent money is no longer “dead money” but can contribute to a home of their own. Investment company Coposit has announced a new rent-to-own program, a scheme where tenants will be able to put money into paying off their own mortgages, instead of solely a landlord’s. Under the scheme dubbed Unrent, renters pay an initial deposit of about $10,000 and weekly rent that goes towards building equity while living in the property. This money is then used as a deposit to secure a mortgage from a bank and buy the home. But experts have warned interested parties to do their homework and pay attention to the “fine print”, as similar rent-to-buy schemes in the past have often involved higher rents and come with limitations. MORE: First-home buyers given ‘worst’ deal in 56yrs Chris Ferris is the CEO for Coposit, which promises to help break the rental cycle. Picture: Neil Bennett / The Photo Pitch MORE: Albo ‘fix’ to cost Sydney renters up to $24k Chris Ferris chief executive officer and co-founder of Coposit said the program is about creating a pathway towards ownership for renters. “The longer people rent, th...