Popular buy now, pay later trend moves into the property market
A game-changing shake-up of the rental market has arrived with the launch of Flexibond – a buy now, pay later platform offering Aussies a new way to pay their bond across four fortnightly instalments.
Launching with a highly competitive offering that allows renters to access their full bond amount, requires no credit checks* and has no interest, Flexibond offers a genuine alternative to renters looking for more freedom and flexibility when it comes to the expenses associated with moving.
New research1 has revealed that over a third of renters (36%) find funding their rental bond stressful. In addition, three quarters (75%) say they find a ‘Buy Now, Pay Later’ service for rental bond appealing, showing the demand for a platform that empowers customers and offers a smarter way to pay rental bonds.
Christopher Bailey, Founder and CEO of Flexibond said, “Renting can be expensive and stressful for many Australians, especially when they first secure a property and require funds for a bond. Flexibond addresses a gap in the market for a ‘Buy Now, Pay Later’ solution that can empower customers to access funds on a digital prepaid card without any commercial merchant agreements needed.
“5.1 million Australians will be renting for life2, and our goal is to help these customers find financial freedom by disrupting the property market and challenging traditional credit providers, said Christopher.’’
Tom Cregan, Managing Director and CEO of EML stated, ”The research findings overwhelmingly support the need for positive disruption within the rental system through a smart, 0% interest BNPL solution. We’re determined to ease the burden faced by renters across the country by removing a significant part of the stress involved in searching for a new home. What makes our partnership with Flexibond even more special is the mutual desire to transform sadness into joy for so many families experiencing heartache from the old bond model.”
Bond blues
Bond is one of the largest expenses incurred when entering a new rental agreement and it can influence what properties individuals decide to apply for. According to this research, over a third of renters find funding their rental bond stressful when moving into a rental property. In addition, nearly a quarter (23%) have stayed longer than they wanted in a rental, because they couldn’t afford to lose their bond by breaking the lease early, with almost 1 in 5 (17%) choosing to move to a property they liked less because they couldn’t afford the bond for the property they liked most.
Whilst some renters will choose to stay in their current property, there are occasions where moving is the only option. Bond can keep critical funds tied up at this time and results show that over half (55%) of respondents have been affected in some way by the length of delay in getting or never getting their bond back. This includes over a quarter (27%) who have felt ‘strapped for cash’ and 21% who have had to cut back on essential spending.
No sting to savings
Over half of Australian renters (53%) say they find it hard to save for a bond, and the most common source used to fund a bond is savings (68%), followed by the bank of mum and dad (23%). But there is no longer a need for renters to dip into their savings or go into debt because they had to borrow money (16%) to afford bond and secure the property they wanted.
Rental freedom
Aussies are looking for an alternative to the traditional bond payment method that puts them back in control. Renters that find a Buy Now, Pay Later service for bonds very or fairly appealing are more likely to find funding their bond stressful compared to those who do not find the service appealing (40% vs 27%). Similarly, renters who would use this service are more likely than those who would not to currently be staying in their rental longer than they want to because they can’t afford the bond to move (20% vs 8%).
With the launch of Flexibond, renters will have the opportunity to take control of how they pay their rental bond, leaving them in a position to comfortably address the other costs of renting.
* Because credit checks have been done by the real estate agent during the rental application process.
[1] YouGov survey of 1,016 Australian renters aged 18 years and older conducted between 10th – 14th August 2020.
[2] Housing – Australian Bureau of Statistics.
