How: Lock in a pre rental agreement price valuation of the property you want to rent and maybe aspire (or not) to own one day, so home prices don’t jump simply because you are seeking to sign this type of agreement. Now for the following example I have used the current Greater Geelong median 3bedroom weekly rent of $480 per week.

If you were to direct 10% of this rent into the leasing agent’s secure trust account (& interest still paid to the rent provider/owner annually) instead of an upfront Bond, that $48 per week would become $25,000 after 10yrs and the renter has built their own home deposit and have a verifiable record of weekly payments to prove to a Bank their capability to meet loan repayments.

Simple. If the renter and/or partner are working in an average Australian income job of $67,000 pa, their 10% employer Super Guarantee contributions & investment growth have also accumulated up to the $30,000 allowed to be redirected from their super account into a home. If they were also able to salary sacrifice $50 per week into their Superannuation and reduce their weekly PAYG tax, that $30,000 target could amp up even more and several years faster.

There could be a Stamp Duty concession for the renter (now buyer) offered by the State Govt in recognition of the reduced State burden on public housing & Commonwealth a CGT concession for the rent provider/house seller ONLY if they had agreed to sell to the renter within 10yrs. Thousands of owners of rental properties are in retirement and will need to divest assets eventually to avoid maintenance costs exceeding rental income or settle estates.

With this one initiative being applied to the 30% of people in Australia renting today, over 617,000 in the last published Census (2016 is too old) of potentially long term or lifetime renters have crossed over to achieve everyone’s life-long dream of homeownership. And this ‘commitment’ changes their attitude and contribution to all sorts of other community benefits.

They have a vested interest in maintaining this asset and keeping things harmonious in their ‘Happy Place’ (action 22 above). And hundreds of thousands of Negative Gear property owners that were taking advantage of the tax structure shortcoming and the inequity towards poorer fellow Australians unable to utilize it themselves, have happily been taken out of the system in 10 years. (As with all my policies there would be a performance Tracker App to demonstrate complements/complaints/suggestions/improvements/effectiveness/transparency etc. in real time).
What an example would this be to the world for the evolution of democracy & equity. Some less fortunate countries only allow citizens to lease a Unit in a multi-story development out in the boon docks for 50yrs, where ownership is not an option.