Why home buyers will contract with Assquire® investors to pay higher rents
Mortgage Alternative home buyers can either be current renters looking to enter the first home buyer market, or existing home owners who are looking to “switch over” to Mortgage Alternative home buying, either because they do not want to pay lenders mortgage insurance on their next property or can’t afford to pay that on top of stamp duty and the current deposit payments if they take a conventional mortgage for their preferred location of residence, but realise that:
- there is no upfront mortgage insurance with Mortgage Alternative (which could save them up to (say) $17,000 at 5% deposit on a $500,000 property); and
- the up front cash deposit with Mortgage Alternative already includes their stamp duty!
Many home buyers will decide to pay the higher rents (slightly higher payments than a mortgage plus property ownership costs) because they really want to move for personal or lifestyle reasons, and because the costs remain competitive with mortgage + property ownership costs (see mortgage comparison tables click here for a Queensland first home buyer and click here for a Queensland non-first home buyer).
Also because they are building an equity stake in the property in a safer way and enjoying the lifestyle benefits of an owner, without mortgage debt or interest rate risk whilst they are in the MA occupancy period.
Future capital growth (if any) is largely delivered to the Mortgage Alternative first home buyer at future property price growth rates above 3%pa (the first 1.5% pa belongs to the Assquire investor – more in some cases for non-first home buyer cases).
Together with monthly deposit increments, MA delivers a buyer with a substantial deposit (in some cases over 30% at settlement after ten years – and even the prospect of possibly settling as early as end of year 6).
Also because they can choose where they wish to live without being constrained by a new home and the lure of a $15,000 or $20,000 State Government Grant on a narrow selection of home locations.
And also (in the case of first time buyers) because of the special Assquire® Grant that is paid on settlement (as a settlement adjustment) to lower their future mortgage.
For home buyers, Assquire® is what will provide you with a Mortgage Alternative (or “MA”) Purchase Contract, lease and associated legal documentation to move into your dream home faster and with confidence, and to start enjoying part of any future capital growth in the property – MA is a low deposit, zero debt, non-mortgage based, pre-mortgage alternative purchasing system based on an internationally patented new financing system and with contracts prepared by a leading firm of Australian and indeed global lawyers. See How Assquire® Helps Home Buyers.