What Deposit Do I Require? 
To qualify for bank finance, you will usually need 5 - 10% deposit if you are a salary and wage earner with little or no credit problems.  If you are self employed or a salary and wage earner with credit problems you may need to create a 20 per cent deposit.  On the other hand, to qualify for a Home Buy Express Rent Buy Plan you may only need as little as $4,000 to get you started.

New Bank Finance Options.  New products are now available that are suitable for people with little or no deposit.
 

What About No Deposit Bank Finance Plans?

We can help you with these new plans - one lender will actually lend up to 106% of the purchase price, and you keep the $7,000 First Home Owners Grant. You will certainly need a strong employment record, and a good strong income. with no black credit marks. To determine if you can qualify for one of these new style bank finance plans. click here Contact Us.

Who Owns the Home? 
Under a Rent Buy (or Vendor Finance) plan the home is owned by the investor.  However the time frame is usually only 2 - 3 years.  We vet all of our investors as to their financial soundness, ethics and character.  We have also developed a range of other safeguards designed to protect your interests.  Please ask for a copy of our ‘Buyer’s Manifesto’.
 

What Suburbs Can I Live In? 
Any suburb that you can afford.

If the Value Of the Property Goes Up Do I Benefit? 
Absolutely. This is the primary reason why a HBE Rent Buy plan is better than simply trying to save up a deposit - and stay renting.  Any increase in value above your price will become ‘yours’ when you settle the transaction with the investor.  

Can I Improve the Home (and benefit from doing so)? 
Absolutely. All of the increase in value (over and above your buy price) created by you should go to you. That's fair.

What Percentage of the Capital Gain Will Be Shared With Me?
All of it, unless a special low payment plan (which we call the Low Start Plan), is installed.   In this instance, the capital gain will usually be shared 60/40 (60 per cent to you).  The Low Start Plan can be a good way to get onto the home ownership ladder without having to commit to a full mortgage style payment.

What Will I Pay On A Rent Buy Plan?
 Unless the Low Start option is selected, the weekly amount you pay will usually be less than you would pay if you were on bank finance now, but more than normal rent.  Frankly if you can't afford to pay more than normal rent now, how can you qualify for bank finance in the future?   

Who Pays the Rates and the Insurance? 
Usually, you would pay it. 

Who is Responsible For Repairs and General Maintenance? 
Normally you would be.

What If I Default? 
We will work very hard to solve any problem you may have. The last thing we want is for you to lose the house. Options can include reduced payments and payment holidays - until you get back on track again.  However, in extreme cases if no solution can be found you would need to relocate into another house. But even then, we may help you in practical ways - including financial assistance.

If I Default or Choose Not to Exercise My Option to Buy the House, Do I Lose My Entitlements? 
Our fundamental and guiding philosophy is that if you have conducted yourself well, have made improvements to the property, or have generally looked after the property as if it was your own, then you should be compensated for this.  We believe it is morally wrong to treat these situations in any other way.  This is of course on the proviso that the value of the property has increased to a sufficient level to enable the investor to pay you out an agreed share.

Can I Make Extra Payments? 
Yes. All extra payments will be fully credited.

How Quickly Can I Qualify For Bank Finance? 
Depends on your situation.  We've helped people do it in as little as 5 months.

What Is An Acceptable Mark Up? 
The investor's objective is always to buy houses below market value.  Certainly the costs of buying the house, together with a modest mark up of typically 10% will need to be added.  Your price should be at or close to market value. 

Wouldn't I Be Better Off Going To a 'Sub Prime' Lender? 
A sub prime lender is a special type of lender who works with people who have had financial problems in the past.  Prime lenders may not lend to you if have had some black credit marks for instance, whereas a sub-prime lender often will.  But here's the catch: they will require a large deposit, usually 20 per cent or more.  Most of the people who come to us don't have a big deposit, therefore, sub prime lending options will not work. In any event we can arrange these types of loans.

Does the First Home Owner's Grant Apply? 
This will depend on factors such as the contract we use and which state you live in. As a guide, if you live in Victoria, New South Wales or Queensland, the FHOG will be paid on a Rent Buy Plan.
 

What Happens If the Investor Goes Bankrupt? 
You may lose any rights and privileges you have accruing to you.  But that is by no means a certainty. In practice providing that regular payments are being made to service the mortgage, the investor's lender may not take any action to take back the house.  If an investor had a financial problem you may be able to complete the purchase anyway. Finally, to reiterate: by working through Home Buy Express we believe the chances are low of any of our investors becoming financially unviable.  We believe that the risks of there being a problem may increase dramatically if you buy through an 'outsider' who is not part of the Home Buy Express 'family'.   We have developed a comprehensive protection package which we call the 'Buyer's Manifesto'.  Please request your copy.

What Happens If the Investor Dies?
If the investor dies the property would form part of the investor's estate.  Providing that the mortgage payments were being met, it is unlikely that the lender would foreclose. Nevertheless we think it prudent for the investor to carry adequate amounts of life insurance. We suggest that you request confirmation of this from the investor.

The Media Occasionally Criticise Rent Buy Arrangements.  Is There Merit in What They Are Saying? 
When an investor has acted in a greedy, unethical way by overpricing the property or charging an excessive interest rate premium, the situation needs to be highlighted.  However, to dismiss rent buy arrangements across the board is very wrong.  Too many people have benefited from these arrangements over the last few years to warrant that response.  Keep in mind that the media make money by highlighting extremes.  When we see a bad news story we are not necessarily seeing an accurate representation of what is actually happening in the greater sense.  The story highlighted is usually an extreme case - that's how the media get their ratings and make money.  And above all the media is largely comprised of large businesses who are consumed with making money. And YES - even THEY sometimes cross the line and misrepresent what is actually happening.  That said, we believe there are some cowboys out there. That is why we carefully vet our investors.  No one can eliminate ALL risk. That is not possible.  But if we can minimise the risks of doing business this way, the greater good is that the overwhelming majority of people will benefit.

Wouldn't I Be Better Off Waiting - By Staying Renting and Saving Up the Deposit? 
In our view this approach doesn't make a lot of sense.  If you stay renting you will probably only have one way to create your deposit - savings only.  On the other hand with a rent buy or vendor finance plan, you have additional firepower - equity sharing.  When was the last time the landlord shared their capital gain with you?  Well, with our plans, you keep all of the capital gain over and above your buy price.

NO Deposit Bank Finance.  We should point out that the new style no deposit bank finance plans could be a serious option for you, if you have no deposit and want bank finance NOW.  If you have an above average verifiable income with little or no debt or credit problems, this could be a better alternative than a Rent Buy Plan.  To determine if you can qualify for one of these new style bank finance plans, click on Contact Us below.

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