Paying dead money on rent ?
Sick of feeding an ungrateful landlord ?
Not going anywhere in life because you can't afford it ?
Not likely to own your own home in the near future ?
If you answered yes to any one of these questions then Easy Houses can help you !
Our unique guarantee to you is that any house you rent from us contains the opportunity for you to purchase it if you so desire at a price set at market rate when you enter your rental agreement & if you choose to purchase at anytime in the next 3 years then 30% of the money you have paid in rent to date will be credited to your house deposit.This is a "RTO home".(rent to own home)
Should You Buy a Home ?
Yes! Yes! Yes!
Don't take our word for it, CHECK IT OUT !
When your buy a house a monthly mortgage serves as a type of scheduled savings plan. Over time, you gradually accumulate what lenders call "equity", an ownership interest in the property that can often borrow against or convert into cash by selling the house. In contrast renters MUST continue paying rent to a landlord for as long as they rent, WITHOUT OPPORTUNITY TO BUILD UP EQUITY !
BELOW IS AN EXAMPLE OF WHAT THE LANDLORD GETS VS WHAT THE HOMEOWNER WOULD GET OR MORE.
|Monthly||After 3 Years||After 5 Years|
Guarantee Yourself a Successful Rent to Own Home
If you were to get yourself a new home built it would go something like this. Buy a block with a bankloan, employ a builder to build you a home, get a top up loan then you or the bank would pay the builder progress payment at different stages over 6 months till the job was complete. Through this whole time period you would be paying your bank interest monthly on the drawn funds.
If you are presently renting & thinking of buying your first home through a RTO program then a good way to ensure a successful move into home ownership is to plan a successful transition.
Re-evaluate your purpose for buying.
You may think that a weekly payment is a weekly payment, whether renting or buying. Your just spending money on living?...Right?......Wrong!.... Paying Rent is paying for a service...the service of a landlord to put a roof over your head & keep it in good repair. When you move you leave that roof behind & take nothing more than what you moved in with.
When you buy a home, you are not losing the money you pay each week. Each weekly payment is an investment which builds equity in your asset. A little later you may even be able to deduct the payments against your income & receive a big check back from the taxation commissioner. Eg could be 50% of your taxation bill.
In addition to the financial advantages you receive the added advantages of security of tenure...your landlord can’t sell you out in 6months [oh god where am I going to live...], you can grow a garden & be rewarded for an improvements you do to your home.
Make yourself aware of the costs of ownership.
These vary depending whether you are doing a RTO program or actually purchasing a home directly through a bank or vendor,
RTO program you pay weekly rent with a portion of that rent going to your deposit for the property should you choose to purchase it. Usually your landlord will pay any strata fees, rates & maintain the property.
Direct purchase whether vendor or bank financed your weekly/monthly payment 100% goes to the principal & interest of your loan.[There is no rent component] You will also need to pay any strata fee’s or rates utilities property maintenance, unforseen property faults eg a bust water pipe etc. To eliminate unforseen property faults see "Easyhouses Purchase Guarantee"
Prove to yourself & Easyhouses your RTO capability.
Your weekly payments on a RTO home or Easyhouse Purchase is going to equate approximately to the equivalent of a low doc bank interest rate on the amount borrowed against the property value. Presently this amount works out to be about $185/week per 100K of property value. So if the house you wish to RTO has a price tag of $250k this = 2.5 x $185/week = $460/week payment.
Do the numbers of what you can afford & property values of the type desired in the postcode of choice. Once you have made the decision to go with a RTO home or direct purchase, calculate the difference between what you are presently paying weekly in rental wastage & the new weekly investment amount you are going to embark with. The difference in these two figures start investing now.
Easyhouses provides a service of banking these weekly payments for you for up to 6months. By this time it will be clear to you and easyhouses that you can afford a home of your own & so at your request easyhouses will vendor finance you a house to this payment value. If you find out for any reason you do not wish to precede then easyhouses will simply give you your money back. Any additional lump sum deposit Easyhouses will pay 10% interest on it.
No Deposit ? . . . No Worries
Before you get the key to your soon to be home you are going to need to come up with an appropriate minimum of 1.5% in hard cash of the value of your home ( the more deposit you can throw in the easier it’s going to be for you on your repayments ).
If you don’t have the 1.5% now you can either:
Which House can I Have ?
We hold a certain number of houses in stock but nothing like the levels you would see in a real estate agents window. If we don’t have anything appropriate then I call upon my associates stocks for suitability & if we still can’t find anything appropriate then I send you house hunting… getting you to select 5 properties that you would be happy to purchase & of these we will go in & buy one that makes financial sense. Enquire about our "Active Search Program". See Hot-Properties for current stock in Australia.
What if I can’t afford the house I want ?
This is not an uncommon problem. We all need to learn to walk by taking small steps. Your first step is home ownership. In a few years time when you have built some equity you can take your next step up & in a few steps you will be into your dream home. But for G..’s sake take your first step & stop the theft of your hard earned cash now.
Can I take advantage of the First Home Owner’s Grant ?
If you are eligible you certainly can. It always amazes me why people leave so much money sitting on the table…. Walk straight past it looking the other way…I did not see that $20,000 just sitting there ! ( FHOG & stamp concessions $7000 to $26000 )
With the property market being stuffed like it is in NSW should I be taking on a Rent to Own Home now or leave it till the market recovers ?
If you plan to be in this property for a reasonable length of time ( e.g. 5yrs ) it makes sense to get in now. You don’t have to take my word for it. . . look at the housing statistics for the last 30 to 40 years – prices double every 5 to 7 years boom or Bust. You don’t have to be Einstein to work out how good home ownership is for a long term investment.