Want to help your adult children get on the property ladder?
Combining Assquire® and Mortgage Alternative is the answer!
Assquire® Family is not a guarantor product. Being a guarantor for your adult child’s mortgage can be risky. So is a family pledge. There are no financial benefits for the guarantor, only risk. That’s why mortgage insurance is so expensive!
What if your child and their partner divorce, get sick or lose their job? And if you help one child, what about the others?
With Assquire® investing and Mortgage Alternative home buying, all members of the family can benefit. Parents receive a good monthly return and adult children can finally achieve home ownership or trade up to another home, with lower up front costs (such as mortgage insurance).
You can purchase a new or established home not just as a good investment for yourself, for a good return, but also one that your adult children would love to live in and purchase, and call their own.
Click here for the Assquire® Family Flyer.
How does it work?
You use an existing investment property or purchase a new one. You then sell and lease the home to your adult children today, on a deferred settlement basis of up to ten years. They settle at a time of their choosing.
Both you and your children will need to be credit qualified by Haigslea Residential. You (the parent) will require at least 20% equity in the property, as the Assquire® investor. Usually Assquire® requires 25% equity in a property, but for Assquire® Family, it is lowered to 20%.
Savings to extended families by keeping the money in the family and accelerating children or grandchildren into a home of their own can exceed $100,000 of additional wealth per child or grandchild as this LinkedIn post by our Founder shows.
Your child will require at least 4.5% to 5% up front cash contribution (non-genuine savings may be accepted). The great news is that their contribution is inclusive of any stamp duty.
Do you like numbers?
For an example for an employed Assquire investor (parent) on say $80,000 taxable income pa, view this table to compare example returns for Assquire® Family compared to conventional rent.
The returns to the Assquire investor on a $350,000 property are modelling at up to $15,000 and 36% higher than a conventional rental with a year 10 settlement; if the adult children settle early at the end of year 6 and proceed from there with a traditional mortgage, returns are up to an amazing 78% higher for the investor than conventional renting. See case 3 of the table above.
For an example for a semi-retired or retired Assquire investor (parent) on say $30,000 taxable income pa, view this table to compare example returns for Assquire® Family compared to conventional rent.
The returns to the Assquire investor on a $500,000 property are modelling at up to $20,200 and 43% higher than a conventional rental with a year 10 settlement; if the adult children settle early at the end of year 6 and proceed from there with a traditional mortgage, returns are up to an amazing 100% higher for the investor. See case 9 of the table above.
Many variables affect net returns to investors and no two properties are the same but this will give you a braod indication.
More Choices for You and Your Extended Family
We’re adding to your choices – not subtracting from them.
Check out a series of video and other social media posts on our media page here.
Benefits for parent investors
Benefits for adult children
Avoids risky guarantor loans and family pledges
Your children benefit from equity growth of the property
Your name stays on title until settlement
You receive a great return during the contract period (up to ten years)
Easy exit for your children if circumstances change
Your property is professionally managed during the contract period
Your children live in your property, in an 'arms length' arrangement
Purchase your new or established home at a pre-agreed fixed price
Avoid costly upfront mortgage insurance
Move in now while you save the remainder of your deposit
Make flat monthly payments not affected by interest rate rises
Contribute to a savings account
Build equity prior to settlement
Simple exit if circumstances change
Choose when you settle
Apply to become an Assquire® investor
Apply now to see if you qualify. It’s free to apply and get a conditional assessment. There is no obligation.
Learn how your child can become an MA buyer
We’ll explain the steps involved so they are ready to go!