- How can HOME SOLUTIONS 4 U help me?
- We provide the “Stepping Stone” for you to get into the HOME OWNERSHIP market and realise the great Australian dream – OWNING YOUR OWN HOME!
- How does it work?
- It is similar to an ordinary Contract of Sale for real estate in that it is a legal document setting out all the terms and conditions which bind both buyer and seller. The house is sold generally with a much smaller deposit than a traditional loan, over a 25 - 30 year term with principle and interest paid in regular instalments. The buyer moves in and occupies the house at the beginning of the period.
- As the buyer you have legal rights to possession and a “Contract for Sale to purchase the property. Basically, contracts are exchanged, but do not settle for 25 - 30 years or until the contract is paid out. You have "control" of the property, just like when you have a normal loan with a bank.
- It is similar in many respects to a Lay-By except you get to use the goods from the beginning instead of waiting until you completely own it.
- When the buyer has enough equity, they may choose to refinance with a traditional lender to obtain the benefit of the lower interest rate. We are then out of the picture, happy that we have been able to provide the “first stepping stone” for yet another home owner to be on their way.
- How popular is seller financing?
- This type of arrangement has been around for a long while and with rising real estate prices “seller financing” is regaining its popularity and is becoming the preferred method of many buyers wanting to get into the home ownership market and away from the rental rut.
- How can I buy a home when I have bad credit?
- You can't through conventional lenders, but you can with our help. We can set up owner financing or by creative Rent-to-Own situations to help improve you credit over time. We also work with mortgage brokers who may be able to arrange a loan for you.
- Do I need to qualify to buy a home?
- We are not extremely interested in you past credit status. What is really important to us is your ability to make reasonable monthly payments and your desire to be a homeowner now.
- What Is Seller Finance?
- When you buy the house you are called the purchaser and the current owner is the seller, also known as the vendor.
- Most purchasers don't have enough money to purchase the property outright and need someone to provide finance. While we are not a finance provider (like a bank, mortgage broker or credit union), we can offer to sell you our properties on flexible terms (time frames) to help get you started. Its like your “first stepping stone” to get into home ownership.
- You are said to be buying the property on seller finance. The terms and conditions of the seller finance are stated as special conditions in the standard “Contract for Sale” document for your state.
- Is The Title To The Property In My Name?
- No. If you use seller finance the title to the property stays in the seller's name until you have made all your repayments and fulfilled your obligations under the sale contract. When you purchase your home your solicitor will place a caveat on the title. This protects you from anything further happening with the property.
- Seller finance is similar to a lay-by transaction, except you can live in the property as you continue to make repayments, just like being financed with a bank.
- Is this legal?
- Our system is completely legal in Australia and in most countries with English law. We use the normal “Contract for Sale” document used in all real estate transactions in your state and get the legal people to draw up the special conditions in the sale contract.
- What Happens If I Pay Late?
- We require that you honour your obligations under the sale contract. You need pay the correct amounts on time. If you fail to do this there are default penalties. You will be given fair and reasonable time to bring default payments up to date. Under “special circumstances” a mutually agreed default payment arrangement may be entered.
- If you continue to breach your contractual obligations then we reserve the right to start legal proceedings and rescind our contract.
- Can I Pay Early?
- Yes. we encourage you to repay as much as you can as quickly as possible.
- Can I Renovate the House?
- Yes, as long as you are improving the value of your home, which benefits you when it comes to refinancing. You will need to use qualified trades people. Major works require local council approval and need to be approved prior to commencement.
- Can I Refinance?
- Yes. You can refinance with another lender at any time.
- Can I Sell The House?
- Yes, as long as the sale amount will pay out your loan with us when it is sold, and you will receive the difference.
- Can I Put A Tenant In The House?
- Yes, but only if you have made this possibility known to us before the initial contract is signed. We will instruct our legal people to put in clauses allowing this option. You will be responsible for continuing to make the correct repayments on the due dates. Be aware that any damage made by the tenant will be your responsibility to fix.
- If you do not receive enough money to cover the repayments then you will have to make up the shortfall out of your own pocket.
- What Happens If I Die?
- If you die then your interest in the property passes in accordance with your will.
- The person(s) who you nominate as beneficiaries will need to continue making the repayments. Your executor may pay us out or refinance the property.
- We recommend you take out a life insurance policy to cover the amount outstanding on the house. Your estate can use that money to pay us out and take clear title to the property.
- Can Interest Rates Change?
- Yes. Interest rates can rise and fall with economic activity. If you are seeking protection from high interest rates then you may like to fix your loan.
- We can offer you a fixed loan facility if our lender offers us one. The interest rate will be slightly higher than the variable rate equivalent.
- Who Pays For Repairs And Maintenance?
- You pay for any repairs or maintenance to the property. For all intents and purposes, it’s your house.
- Who Pays The Rates And Taxes?
- You pay for any rates and taxes on the property. You also pay the land tax, if any, that we are liable to pay as a result of owning the property. Rather than you having to deal with infrequent large payments, normally we pay the rates and insurance on the house itself for you, and add it proportionally to your repayments.
- Can I Make Cosmetic Or Structural Changes To The House?
- Yes. You can do whatever you like provided you comply with all building and council regulations and have our written consent first.
- What other charges might I be up for?
- Normally, the only other charge besides Stamp Duty would be the cost of having the Installment Contract created ($900 inc.’ GST) and the normal expenses associated with moving (e.g. power, telephone).
“Working with people to find solutions to their property challenges”.
“Helping families realise their dream of home ownership”
Maree and I have a family of four children and together have been involved in property investing since 1985 (over 25 years).
To provide creative solutions that best fit your home selling or ownership needs!