How to own a house in Melbourne? – Part 1
Are you thinking to buy a home in a place like Melbourne or any other
part of Australia
with some degree of value but haven't saved a deposit? Most lenders will desire
you to have saved at least 5% of the purchase price over a period of at least 3
months. But is it really needed?
My answer would be ‘NO’.
I have two easy ways
for myself or any other individual reading this article with a desire to own a
house. And they are-
1. NO DEPOSITS LOANS and
2. RENT TO OWN
NO DEPOST LOANS
What is no deposit Loans?
No deposit home is simply a loan refers to the kind where no
deposit is required.
A no deposit home
loan, also known as a 100 percent loan, enables one to get into a new home without paying any money down. For a person who hasn't saved
enough money for a down payment, but can be sure that their income will remain
steady over the years, a no deposit home loan could be a relatively safe way of getting
into a nice home. This is a risky avenue as well;
as it assumes that the homeowner will not suffer a job loss or other financial
setbacks and without any safety net, it can be easy to fall behind on payments
if a financial situation goes wrong.
Can i borrow 100%?
If you buying
a house to live in:
First home buyers and other people buying an owner occupied house make up the
majority of people favoring for 100% home loans in Australia, with the help of
a guarantor. They are looked at favorably by the banks because they tend to
look after their property well and are more likely to pay their loan in time. Comparing
with all other kind of lenders, they are lower risk borrowers.
If you are a Investor: Investors are eligible for no
deposit finance only if they have a guarantor, however they may be required to
meet one or more stringent criteria due to the higher risk their application
poses to the banks. In some cases this requirement can be waived, for example
someone who lives with their parents and willing to buy an investment property
as their first property rather than a place to live in. In other cases
investors can often reduce their loan to 95% of the property value to have a
range of choices of lenders.
Benefits
of no deposit loan
for borrowers
No
deposit loan has become an attractive option for many people who do not have
the funds to contribute toward a mortgage.Some of the main benefits of no
deposit loans include:
- No
savings or bank credits are needed.
- Both
investors and owner occupier buyers can take advantage of this product.
- Can
borrow the full purchase amount as well as the money needed for stamp duty
or any other associated costs.
- Some
loan packages come with great features including a redraw option or the
ability to make extra repayments.
- Lenders
Mortgage Insurance (LMI) is not required!
Important pre requirements for a no
deposit loans
- Professionals:
Professionals such as accountants, lawyers, doctors,
vets, nurses, government employees and teachers are highly preferable due
to their job security.If you aren’t
in one of these professions don’t worry! Lenders can consider anyone who
is in a good financial position for a mortgage.
- Debt
payment history:
You must be paying all of your current debts such as credit or debit
cards, personal loans and rent on time.
- Location
restrictions:
You must be buying in a major town, capital city or regional centre.
- Property
type:
The property you are buying must be a standard type of property such as a
house, townhouse, unit or vacant land. As a general rule unusual or unique
properties are not acceptable. We have been able to lend for duplexes,
inner-city apartments, studios, bedsitters and even company title units in
the past for customers of ours that have a good income. If you are not
sure then call us and we’ll let you know.
- Income:
Your income must be high enough that you can easily service the loan. You
cannot borrow to your limit with a high LVR
mortgage.
Some extra features of no deposit loans
No
deposit home loans with a guarantor are available with almost all features of
loan including:
- Professional
package discounts
- Waived
application, valuation and monthly fees
- Fixed
rates (1 year, 3 years, 5 years, 10 years and 15 years)
- 100%
offset accounts
- Unlimited
extra repayments (variable rate loans only)
- Redraw
facilities
- Interest
only repayments (up to 15 years)
- Weekly,
fortnightly or monthly repayments
- Vacant
land, building or construction loans
How can I get no
deposit loans?
Fortunately,
today there are several numbers of banks and corporations which are offering
this type of loans (you can visit any one of them you trust) or you can contact
any certified trusted Mortgage
Broker in your area.
Are no deposit loans
available on all locations in Australia?
Most no deposit
lenders have location restrictions or other postcode restrictions on no deposit
loans outside of capital cities and dew major regional centres. If you are
buying in Sydney, Brisbane, Melbourne, Adelaide, Perth, Darwin, Canberra or
Hobart then you probably have no problem.
Other regional areas that are also accepted by all
lenders for no deposit loans are Wollongong, Queanbeyan, Newcastle, Wagga
Wagga, Tamworth, Coffs Harbour, the Gold Coast, Sunshine Coast, Cairns,
Toowoomba, Townsville, Ipswitch, Bundaberg, Ballarat, Bendigo, Albury /
Wadonga, Freemantle, and Geraldton.
In
the part – 2, i will be featuring another best way i.e. how to rent to own your
house and then ultimately buying it, in Melbourne or in any other major
regional centres in Australia.
How to own a house in Melbourne? –
Part 2
In the previous -part
1, I featured ‘’No deposits loans’’ which is one of the best way to buy a house
in Melbourne and even in some other major parts of Australia. Now here comes
the part- 2, dealing with another one of the best way to buy your house.
RENT TO OWN
Renting to buy your home is not a lot different than your usual rental agreement.
Still there is one big difference – when you rent to buy a portion of the money you spend each months goes
towards owning that home. For lot of people, the actual rent-to-own home may be
the best option. Also called the rent to buy home, the procedure functions
similar to an automobile lease: Renters invest a quantity each month to reside
in the house and at the end of a arranged period of time -- usually within
three years – they have the choice to buy the house. Every monthly rent to your
lender is really a earning for your seller, although some of it will go in the
direction of a payment in advance in order to ultimately buy that home.
Here is a great
example: The house is worth $200,000, and your rent would be around $1,500 a
month. Someone who is renting to own might pay $1,250 a month as a rent and
then receive a $250 rent credit each month. Add the option fees, in this case
$5,500. On a three-year lease, the renter would earn $7,500 or more in rent
credits. Adding the earned rental credits to the option fees, the renter has
accumulated $12,700 or more for a down payment.
Home Rent
to buy provides
you one easy way to own the home of your dreams, without huge down payments but
the financial meltdown has been noticed in the past, that the affordability of
an individual goes down drastically. Banks are hesitant to sanction loans and
are looking for collateral. Loans are offered only for applicants with a good
credit rating and a definite source of income. Many applications are rejected
due to lack of secure income and proper documentation.
Benefits and Risks, Both involved
Purchasers
have enough time to construct income as well as restore their own credit score
because they rent the house.
Before
Going for an agreement, sellers have to decide the sale price and rent they will
charge for the house for other decided period of time. Both values are subject
to negotiation, just as a regular sale should be. But sellers and buyers need
to remember that once they sign an agreement, the sale price of the house fixed
until the end of their rental term, between one - three years. Even if other
housing prices rise or fall during that time but the pre fixed rate is final.
Renters
also have to pay an option fees and then a rent premium periodically. The
option fee is a set amount that the renter pays the seller. If, at the end of
the lease period, the renter buys the house, the option fee becomes part of the
down payment. If the renter does not buy the house, the option fee ultimately
becomes the income for the seller. Rent premiums are an amount slightly above
the fixed rent, with a portion of that money going toward down payment every
month.
This
is a crucial; alternative for buyers who otherwise would not have the credit
amount or money saved to buy their own house. And the sellers, eager to relieve
themselves of the burden of their old house, earn this money whether or not the
house sells once the leasing period gets over. If, at the end of the contract
you can't or chooses not to buy the house, the seller keeps all the option fee
and rent premium. As with any legal contract, there are mutual risks for both
the sides and disadvantages involved for both parties.
If
the renter is simply a day time late on the month's lease payment, most
agreements emptiness the rent credit score for your 30 days. Take into account
the prior example, in which the three-year renter received the $250 rent credit
score each month. When the purchaser paid the particular lease past due simply
3 times every year, at the end of the rent time period, the customer might have
$1,850 much less for that down payment. The client within the Rent to buy
agreement is forced to pay for on time, every time.
This
rent to buy in Melbourne is very convenient
convenient as there is no collateral or big deposit needed. A person can easily
enter the scheme with a minimum of 2% to 5% down payment along with a 20%
higher than normal rentals. The extra rentals will go towards the down payment
which is a plus point. Once the rent to own Melbourne deal ends the renter can
buy the property for present market value. The period of contract can range
anywhere between 1 year to 3 years.
House
to rent to buy contract can be drawn with the help
of advocate. The contract must state clearly all the details without leaving
any loose ends. Both the renter and the owner should read the whole terms and
conditions in the document thoroughly before signing the contract. Once the rent
to own Melbourne
contract is signed both the parties must abide by the
contract.
It is the kind of economic freedom that sbobet brings to individuals who are
engaged in it. It really does not matter the sort of sporting activity that you
choose, the only point that you need to have to know is that you will get the
leeway that you want to meet your price range deficit affordably and
successfully. It is an indicates to an finish if you meticulously follow the
policies and make the best selections in your bet. With sbobet, you will be
able to reside the second revenue that you have been dreaming of for a while.
