at PO Box 871 , Brisbane, 4064 Australia
Mortgage Alternative gives buyers and renters wanting to become owners the opportunity to get into their home sooner with Assquire investors.
Mortgage Alternative is for credit worthy home buyers with at least 5% deposit who purchase from Assquire investors that are seeking higher yields from allowing MA home buyers to live in the home whilst they save a full deposit, without the usual risks of a mortgage or home loan. Both can benefit from any capital growth during the mortgage incubation period.
551 FB users likes Mortgage Alternative, set it to 60 position in Likes Rating for Brisbane, Queensland, Australia in Company category
What role will Mortgage Alternative play in society? With capital city home values rising and first home buyers now at an all time record low (12.3%) as a percentage of all owner occupier finance commitments in general, it is time for a new and better way to get our younger people into home ownership. The mortgage was invented a very long time ago. Mortgage Alternative is expected to become the new way – the future in home ownership in the pre-mortgage days. It will not replace a mortgage. It will assist people to get a mortgage more safely, further down the track, and do so with more flexibility than a mortgage offers. It will do this using well established techniques in property ownership, used for decades in the Australian Real Estate Investment Trust (REIT) sector, and in the process, it will offer Australian superannuation funds and international investors more diversity of investment class than retail, commercial office and industrial property alone – with the ability to invest in MA's Home Owning Funds with a competitive stable and predictable return over ten years. Australian super funds helping fulfill the great Australian dream of home ownership for our children and our children's children. This is my vision and that of my management team who have worked hard to bring this to market over many years. First home buyers need help, and this product can deliver it with the assistance of Australia's institutional capital markets, including the 1.7 trillion dollar Australian superannuation fund market. The returns from this patented financing system certainly warrant their investment, and the risks in diversified residential property investment can be much better managed using the risk protection features embedded into this new financing system's design. We have commenced the new year undertaking presentations to the institutional capital markets off the early consumer demand from this Part One registration process in Brisbane, so please keep the registrations coming. I believe that in time, MA will also make the Australian banking sector stronger, as it lead generates customers more safely towards a conventional mortgage, reducing mortgagee in possessions, which is an expensive and time consuming process for banks and very difficult for the poor occupants that often (but not always) suffer fire sale consequences and long delays through the unwinding of their mortgagor responsibilities. There is also a possibility that as more renters move into home ownership using MA in future years, it will ease the congestion and any potential future rental crisis in the private rental market as population increases and immigration swell the future demand for housing, where over 2.1 million Australians currently reside - a third of which have been renting for over 10 years. (source: Grattan Report: Renovating Housing Policy" Sept 2013 Page 18 at http://grattan.edu.au/publications/reports/post/renovating-housing-policy/). Keith Burchill Founder - Mortgage Alternative
Here are the non-financial qualitative benefits of Mortgage Alternative (MA). It's a bit long, but well worth the read: The lower deposit requirement with MA enables many MA buyers who have adequate credit serviceability, but are more constrained by the combined trifecta of upfront costs of deposit + stamp duty and legals + LMI with a conventional mortgage to afford a more expensive property or larger, better home. •Fixed predetermined payments provides more certainty and peace of mind to an MA buyer. •Lock the purchase price for the next ten years whilst you live in the home. •Freedom of no mortgage debt for up to ten years – again more peace of mind. •No interest rate risk, or blot on your credit history if you are forced by adverse personal circumstance to walk away - a significant benefit in today's world. •Downside risk protection by election to terminate the contract and vacate on 30 days notice handing all capital growth back to the landlord, with no fire sale risk or responsibility – not available with a mortgage at all and a great stress reliever, in the decision to embark on looking for a home to buy. an MA buyer's liability is capped at their past payments…and with some money returned (a savings component cheerfully returned to you likely to be more than your 5% deposit, by the end of the ten year period) •The enablement with insurance proceeds to buy the property upon a death or disablement of a partner. These insurances are compulsory with MA, to lower Assquire investor risk of completion. •Use of valuers and building inspections at no cost/inconvenience to the MA buyer. •Cheaper than a mortgage per month in many cases, with effectively “free” downside risk protection in most cases, compared to mortgage payments •Ease of exit – no selling costs to an agency or advertising cost - unlike a conventional mortgage. •Wealth creation with unlimited upside in capital growth for just 5% deposit inclusive of stamp duty – you benefit from the Investor’s equity and debt and their acceptance of downside risk, as a Landlord does. •Sense of ownership and lifestyle benefits •More freedom to hang pictures, have pets etc •Durability of tenure compared to rental (where the landlord can sell on short notice and you are forced to move) •Ease of maintenance compared to rental process – faster turnaround of repairs, because you have effectively paid for them •Return of an amount of your savings (part of your monthly payment) higher than your deposit in most cases, after ten years of occupation, should you need to walk away and return the property to the investor. As you know, average capital growth over a decade of 8%pa or more has been the historical reality nationally since the 1950’s in every decade, although repetition of that is not assured. Yes, it's a new way to buy homes. Yes, it's better! And your mortgage in ten years will be lower than with a conventional mortgage, if properties go up by at least 5% pa on average over the next ten years, based on our modelling. So what are you waiting in the rental market for?
The conventional wisdom was that you have had to take a mortgage to get to home ownership. That was so for your parents - but no longer for you. Look at http://goo.gl/IhcMYv and view the How It Works page also. Mortgage Alternative is simply a safer way.
Do I continue to rent or do I take Mortgage Alternative as a stepping stone to a mortgage? Think about this. If you take a mortgage for 25 years and stay in the same home, you will eventually pay it off. If you rent for 10 years or 20 years or 25 years, you will pay off nothing, and still have another rent payment the next month, and the month after that etc until you reach retirement age. After 50 years of renting, you could have paid off two homes! Wow! That's powerful. So saving is the key, and a mortgage forces you to do that. So too does Mortgage Alternative, but think of MA as a useful "bridge" in life that gets you to a mortgage in an easier, safer and smarter way with lower upfront costs, pre-agreed payments, no mortgage debt around your neck during the MA term, more protection from future property price decline and interest rate hikes, more peace of mind, and easier exit without the same fire sale risks, if your personal circumstances change. To date, there has been no bridge! If things go well and your personal circumstances (health, job, relationship) don't change adversely over the next 5-10 years, you continue with MA to enjoy those lifestyle benefits of home ownership sooner, saving your full deposit while living in the home and later progress to the traditional mortgage in a safer way. Why continue to pay dead money in rent, when there is Mortgage Alternative to cover the downside risks more effectively? MA allows you to more safely start the process now and gives you the savings discipline as part of your monthly payments. This savings discipline is no mean feat to perpetually achieve. A senior mortgage broker recently told me his experience of over 25 years was that many young people he met expect they will save the deposit, but so often just simply don't get there. He encouraged us to continue to get this message out to the community. Was he an older wiser head perhaps? It is your life to live and you are a long time dead. Think about where you (and your future family) will be in 25 years time and start planning your life out now. - as you won't get any younger. Two certainties in life. - death and taxes. Would you benefit longer term from beginning to cross the bridge now?