New concept for starters: rent first, buy later

Starters often make too much money to apply for a social housing, but too little to get a mortgage for a house. There is a new concept that can be of service to this group: Rent First, Buy Later (KoLat in Dutch).

This concept means that you rent a house first, and when you have enough money you can buy that same house. In the place Zeeland, in Brabant, The Netherlands, they started a pilot in 2017. There are 16 houses which are now rented out to tenants. They are waiting and saving to buy the house they are living in now. When that moment comes, the current tenants have the first option to buy. This way, the concept avoids starters having no good position at all. 

The Dutch government is enthusiastic about this concept. Almost all political parties voted end 2018 for a motion to investigate KoLat and similar alternatives further. 

Source: RTL Z