ASSQUIRE® Grant Reduces A Mortgage Alternative Home Buyer’s End Purchase Price on Settlement and Reduces Their Future Mortgage Starting Point:

With Mortgage Alternative, an additional and specially designed Assquire® “grant” of approximately $16,000 to $54,000 for a $400,000 to $500,000 home (see table in the drop down below – current as at March 2018 but subject to change in future if product design and/or pricing changes) is provided by the Assquire® investor.

The embedded reduction in the pre-agreed contract price for first time buyers, compared to non-first home buyers, only applies in circumstances where compound annual growth in a property over the occupancy period equals or exceeds 4.5% pa.

The grant is built into the pre-agreed settlement price and is only provided to an MA Buyer if they settle their Purchase Contract. It becomes a contract term, agreed up front and is legally binding.

Can first home buyers get the Queensland Government First Home Buyers’ grant as well?

It is understood that MA buyers may qualify for the State Government Grant at settlement, if they apply within the legislated period after date of contract. Further legal advice should be sought by applicants to confirm this, and what will happen to the State Government Grant application in circumstances where actual end settlement in up to ten years does not arise, for whatever reason – Take Back rights are covered in the MA contract suite.

There are important social benefits to MA generally – whether first time buyers or not – in getting qualifying applicants into their homes sooner – home buyers who typically struggle with the time required to save the deposit that Assquire® investors already have.

By designing the Assquire® system in this way, there is an added and complementary social and community benefit, to the benefits of MA generally available to other buyers looking to buy and trade up or downsize for whatever reason – relationship breakdown; recovering from a previous financial set-back etc.

The Assquire Grant at a 4.5% and 5% growth rate per annum over 10 years is currently:

The Assquire Grant is embedded in the pre-agreed Purchase Price and is not a separate cash grant

Why have the Assquire Grant® at all? Well put simply, it’s there to compensate the buyers who otherwise would benefit from the State Government First home buyers grant up front. Without the Assquire® Grant, those buyers who are eligible for the Government Grant would be unlikely to use Mortgage Alternative (MA) and transact with you at all. So it’s there to give you even more chances at stable predictable returns.

Assquire® investors are typically high yield seekers and receive most of their return from the higher contracted monthly stable, predictable yield (higher Assquire rents) and not from future capital growth in the Assquire® property.

The Assquire® Grant is nil at growth rates under 4.5% pa, and given it is affecting a cash flow up to ten years away and dependent on property price growth, many investors are less likely to focus on it. Consider those landlords experiencing vacancies at the expense of up to 40-60% higher monthly yields from willing first home buyers who like their property.

For non-first home buyers, at 4.5% or higher annual property price growth, any future growth will predominantly go to the MA buyer (if they settle) in return for providing the Assquire® investor with the higher monthly income and the Uplift Payment (which equals the Assquire® Grant that first home buyers do not pay). So at those higher property price growth rates, non-first home buyers are more fairly compensating the Assquire® investor for locking the purchase price ten years earlier, via the added Uplift Payment.

In summary then, the Assquire® Grant effectively insulates first time MA buyers from the Uplift Payment and gives a great (and safer) opportunity whilst their equity in the property is low to accumulate an even higher and substantial deposit over up to ten years (over and beyond the 10% allowed for in their monthly deposit increments and initial deposit). What a great deal for first home buyers! Far more effective that the government grant that many say only inflates house prices by being paid up front.

Depending on future residential property prices, an MA buyer may even be able to settle with a conventional mortgage and a 14%+ deposit much earlier, possibly even after the end of six years!

Your parents or grandparents could even set you up by being the Assquire® investor to you, as an MA buyer! What a great idea! Assquire Family!

Mortgage Alternative is a third new way – rent or mortgage are the two old ways, so if you are an investor relative,  apply here now, or if you wish to become an MA home buyer apply here. It is understood that MA buyers may qualify for the State Government Grant at settlement, if they apply within the legislated period after date of contract. Further legal advice should be sought by applicants to confirm this, and what will happen to the State Government Grant application in circumstances where actual end settlement in up to ten years does not arise, for whatever reason – Take Back rights are covered in the MA contract suite.

Mortgage Alternative (MA) is a new product which the credit worthy, above median income occupant/purchaser may elect to use in future to get a foot on the property ladder with no debt, for a lower deposit and without mortgage insurance. You may even be able to potentially use your super fund’s life insurance and total and permanent disablement insurance to help protect your loved ones from your own mishap, in combination with MA, if that insurance is sufficient to meet your settlement obligations. Seek advice.

MA is a pre-mortgage alternative purchasing method. The details of MA and how it works for occupant purchasers who purchase and occupy properties (with the protections of the Residential Tenancies or equivalent legislation) can be explained to you on application and by your own independent adviser.

A simplified description of the Mortgage Alternative/Assquire® process can be located here.