Contract information

Whilst we refer to this as a “Rent To Own”, legally you will be entering into an unconditional, binding, enforceable contract to purchase the property with a Deferred Settlement (For a period of up to 5 years).

During the term of the contract you will be paying a weekly amount which is predominantly interest, together with rates and insurance (which accounts for approximately $40.00 per week) PLUS a weekly amount (a minimum $30.00 per week) which at the end of the term of the contract is credited towards your deposit.

The purpose of this is to get you to a situation, whereby at the expiration of the contract, you will be in a position to obtain a mortgage (from your Bank) which will enable you to pay us out and take title to the property in your own name.

Current bank criteria would normally require you have a deposit of 20% to 30% of the purchase price to be eligible for a mortgage.

However, if you have a regular income, and have KiwiSaver, you should be eligible for a Home Start Loan (assuming that this will be the first property you will own and that you intend living there) in which case you may only be required to have a deposit equal to 10% of the Purchase Price.

Additionally you are entitled to a government grant of $5,000.00 towards the purchase of your first home.
You may also use some of the money you already have in your KiwiSaver towards the deposit required.

Attached is a draft of the of the contract.

Draft Contract

General Information

There is huge unsatisfied demand for reasonably presented rental properties, since the stock of rentals has rapidly decreased: mainly because 7 out of 10 sales of residential properties in Tokoroa are to owner-occupiers moving Tokoroa from surrounding areas such as Auckland, Taupo, Hamilton, Cambridge, Tauranga etc where property prices and rents are many times higher.

Rents range from $160.00 – $220 for lower to mid range properties. Weekly payments cover everything (interest, rates and insurance) but not maintenance.

There is huge interest – we sell, on average, 2 -3 properties per month. There are employment opportunities, although many of my buyers are happy to commute. (believe it or not, I know of one guy who travels to AUCKLAND every day).

Remember also, there are the usual “bank of beneficiaries” who account for most of the lower end rental market. (Having said that, the demographics are virtually the same as any other provincial area, or low to middle class suburb).

Tokoroa is now booming (population 14,000) and will likely out-perform every other Provincial centre as current forestry land is rapidly being converted to valuable dairy farms.

Tokoroa already has an enviable infrastructure, and with changes in Transit Roading policy in the near future, will soon find itself as the main centre of the South Waikato district.

Fonterra have recently spent $400 million upgrading their Lichfield cheese plant which has created a huge demand for both rental and property.