Tuesday, 25 June 2013

I cant get a bank loan but I want to own a home or I want to invest in property

Too often I hear these phrases when people say they want to own a home or they want to invest in property:

"I can't get a bank loan"
"I can't be bothered applying"
"I don't have a 10% deposit"
"I'm self-employed and the bank process is too long"
"I haven't done my taxes in years and can't get approved"
"I'm new to the country"
"I don't have a stable employment history"
"I have credit issues"
and so on.

So how do we work around this case where you can afford the monthly repayments but the banks just refuse to loan you money?

Talk to the seller!
Sellers just want to sell their house quickly and at the best price.
Buyers just want to buy and move in or invest.

Simply structure it so that you make repayments to the seller! In this way, you get to by-pass the lengthy bank loan process and the seller gets more money since you pay the interest direct to the seller. Of course, it is extremely important to have this legally written.

Buyer benefits:
- No need to get a bank loan
- No need to go through the long paperwork process and stress about approvals
- You can move in quicker or invest and rent out quicker
- You save on loan paperwork fees

Seller benefits:
- Property is sold faster
- More money received
- All debts paid off

This is just one of the many strategies taught by Rick Otton and I recommend attending his free seminars all over Australia if you want to sell or buy faster with no bank loans.
If you have a place to sell but don't want to deal directly or find your own buyer, I can take over and help with no fees! If you are looking to buy a property in Australia without a bank loan and dont want to deal directly with the seller, I have properties ready for you with affordable repayments.

Sellers or Buyers, just feel free to email: alyssa@homebucket.com

Happy selling or buying!

Sunday, 19 May 2013

Property Investing, buying a house in Australia

Hey guys

I wanted to share with you on how I started property investing and buying houses to make profits.

My background in property started with watching my parents:
My parents were the renovator-types. Buying an old house and fixing it up structurally and cosmetically then selling it down the road to make profits. They only do this to the principal place of residence (PPOR), so no capital gains tax is applicable. In a span of 12 years living with my parents in Australia, we had moved 8 times and of course made profits along the way. Its not easy work --- I've had to shovel soil, lay wooden floor boards, paint rooms, carry bricks and pack numerous times. In fact, lots of my stuff are still in boxes. But it worked for them and it paid for me and 3 of my other sister's education till University. Oh and my parents also had a business selling massage chairs and products.

I knew I was not a renovator-type. My dad enjoyed designing and building - extending bathrooms, adding a new kitchen, drilling an entire basement and doing all the plumbing and electrical wiring himself. Me? No.

So at a ripe age of 21, I went out searching for ways to invest in property without much cash and without having to do any manual renovations. I attended Rick Otton's class and it changed my life.

If you are at all interested in building your own wealth with property with little cash, then this event is just for you. He holds these talks around Australia and you nothing to lose, its FREE. He talks about how to buy a house for a dollar but of course if you have some cash to invest, it'll make it even easier. Its ok to be skeptical and doubt - I did. But if you don't like what he is saying, its ok, at least you know one more property strategy and you paid nothing for it.

Wednesday, 20 February 2013

Cant get finance and rent-to-own period is finished

At homebucket.com, we help people who wish to own a home but cannot buy the traditional way since they cannot qualify for a normal bank loan. The 2 main ways to consider owning a home today is rent-to-own or no-bank home/vendor finance.

I strongly suggest reading about those 2 ways and deciding whether it the right option for you.

Getting back to the main topic of this post: What happens if you are on a rent-to-own and your trying period has run out but you still cannot get finance?

Firstly, try talking to the owner to set up an extension period. At homebucket, we are usually able to extend a further 6-months or a year or so without any problems. This tends to be sufficient time to sort out finances. If this is still not possible and you really wish to own the home, you may wish to consider switching your purchase to an instalment contract (also known as vendor finance). In this way, you get an 'equitable title' and the right to demand the 'legal title' upon payment of the full purchase price after the final instalment payment has been made. With the 'equitable title', you benefit from any increase in value between the date of the agreement and final delivery of the deed of trust once the balance is paid in full.

Don't give up on your future and your dreams

Saturday, 9 February 2013

Rent-to-Own vs Lease Option

Q: What is the difference between rent-to-own, rent-to-buy, lease option?

A: No difference! They all achieve the same thing --- allowing people to try out a home before committing to buy. A rent to own is a rent to buy and it is also a lease option. Lease option is the legal term for the paperwork system system used to buy properties under a rent-to-buy. Lease means to rent and option is the chance/opportunity to buy a property at a later date. In this way, you have the chance (option) to buy the property while renting but you are not forced to buy it.

Saturday, 22 September 2012

Try before you Buy (Rent to Own)

So, you're currently renting and dream of owning your own home.
However, the banks have said that you have not ticked all their boxes in order to qualify for a home loan.

These bank criteria are often:
- Do not have a large enough deposit (10-20% of the house value)
- Cannot prove a regular income (self-employed or casual worker)
- Do not have a credit history
- Have a spot on the credit report

Luckily, there are other ways to obtain home ownership that do not involve applying for a bank loan and do not require that high deposit that banks require. All that is needed is the ability to meet regular weekly or monthly payments.

Rent to Own / Rent to Buy - 'Try Before You Buy'

Rent to own acts as a stepping stone between renting and owning. Homeowners can 'try before they buy' by renting the property a few years before committing to buying the property.

Essentially, it is a legally documented transaction, with the property rented and an option to purchase at an agreed price, sometime in the future.

The potential homeowner is not obligated to purchase but is given the opportunity to 'try before they buy'. They have the choice of terminating the agreement at any time and returning the property. The also have the choice of buying the property when they want.

This gives the buyer the flexibility to change their mind down the track - perhaps about the suitability of the neighborhood or the house or just a change in personal situation.

This strategy is great for people who want to get into the property market without large up-front costs and just want the chance to start owning their own home. It is also ideal for renovators who want control over the  property for a short period of time and then resell for a profit.

The best reason to enter in a rent-to-own is that you have fixed the buying price, even if it is a few years in the future. This should give you a peace of mind about rising house prices and it'll give you time to continue saving towards a deposit. At the same time, you get to live in the home in which you will eventually own.

To enter into a rent-to-own, it is often necessary to put down a non-refundable deposit. The good thing is, this deposit is significantly lower than what banks expect buyers to have. The rental amount may be higher than the rental rate in the area, but there will be no more paying dead rent. Depending on the terms of the agreement, a portion of the rent paid may be counted towards the deposit on the property.

At the end of the agreement period, you will have accumulated a deposit towards the property and the additional savings over that time. You may either buy the property and shift to a bank or request the creation of a new agreement. However, when re-creating the new agreement, the owner may revise the purchase price.

Rent-to-own is particularly good if you fail to meet the mortgage requirements of a traditional lender. By demonstrating regular payments, you create a good track record that enables you to meet at least one of their lending criteria. Credit spots could be healed and would be less of an issue over time. You get to test whether the home is to your liking and over time, will have built up a deposit that allows you to shift to a bank.

If you are looking for a rent to own home in Sydney, let me know!

Happy home owning.

Why do people sell their house

Hello Home Bucketeers!

As a way to help sellers in Sydney and across Australia to easily sell their homes, I have decided to start a blog! In this current bad economic situation, I'm seeing more and more houses for sale and sellers forced to reduce their prices just to obtain a sale. There are houses in Western Sydney (blacktown, penrith, etc) that have been on the market for more than 3 months and even with slashed prices, these homes are not luring buyers.

So why are people selling in this market?
- Can't afford repayments because of increases of day-to-day family expenses.
- Moving overseas
- Divorce sales
- Need the cash to put towards a business or to put in other investments
- Just want some cash for a holiday or to buy that treat
- Pay off debts from home loan, car loan, credit cards, bills, etc.
- Bought another house
- Want to sell the investment house since its not in a good financial state.
- Get the cash out and put in the bank for a rainy day

Whatever the reason, if a seller no longer wants to wait for the buyer and just wants to sell, I can usually step in and provide a solution that will work for both parties. Since I do not charge any fees or commission, I basically provide another option. Sellers are also able to continue listing with an agent while considering other options to get the price they want.

Happy Selling!