5 bed + office, double lockup garage                                            SOLD

The following article was taken from the Australian Newspaper Website. To read the original article click on the link at the bottom of the page.

RENTERS struggling to get a home loan should be helped by the federal Government to buy the houses they live in, under a proposal to be unveiled today at the 2020 Summit by World Vision chief Tim Costello.

The co-chair of the summit’s families panel said yesterday the current generation of young renters had no hope of buying their own homes and had been ripped off by the baby boomers.

Under Mr Costello’s proposal, the Government would act as a guarantor for struggling new home buyers.

Mr Costello said the Government would need to introduce a new Home Ownership Training and Support Program for tenants struggling to buy and for existing home purchasers at risk of mortgage default.

“The Government’s job would be to be a guarantor or to help create title that secures people being able to get these loans,” he said.

“Any properties that landlords are prepared to sell, the renters would be able to make an offer. Sometimes they would be government rental properties but we have a low amount of government housing. It will allow people to start saving.”

Mr Costello said the housing affordability crisis was so bad it was now “touching middle-class people and it’s one that if we lock young people out, we will snuff out hope with the generation who are going to be paying the bills for me in my old age”.

He said the rent-to-buy system was driven by him having three children at home who did not have “much chance of buying into the housing market”.

“It’s overcoming the barrier between them and us - the idea that you’re either a renter or you’ve got title - whereby our financial institutions develop financial loans backed by government security to help people make the transition from being a renter to purchasing the place they are renting,” he said. “So it is assisting people, particularly those on lower incomes who can’t make it in because of affordability issues, to have a chance.

“They deserve a bit of recognition that they are going to be the Hercules carrying the baby boomer lot who had it easy.”

Mr Costello said the scheme would be means-tested generously, but should not become “rich welfare”.

Under the new scheme, banks would have to come up with new financial instruments to allow the Government to go guarantor.

“The Government would act as guarantor of last resort for a bank that gives you the money to put the downpayment down,” Mr Costello said.

“The most important thing is to recognise that … there has been very little incentive for people who rent. Now that it’s becoming so difficult to deal with the gap between rental and ownership, we have to stop the ‘them and us’.”

He said renters would have an incentive that they would one day own where they lived, instead of paying the “dead money” of rent.

“It gives people a focus and a goal to save a bit more,” he said.

The Rudd Government turned the housing affordability debate to its advantage in last year’s election campaign, promising to make it easier for people to enter the housing market through a range of measures including a home-saver account.

A Treasury official this month labelled the affordability crunch for first-home buyers “the worst on record” but said people who paid more than 30 per cent of their income on housing were not necessarily struggling.

Manager of Treasury’s household and labour unit Phil Garton told a Senate inquiry that buying a first home had become less and less affordable since the mid-1990s, based on the share of income spent servicing a loan.

Click Here To Read The Original Article.

The article Below was taken from the abc’s website you can view the original article by clicking on the link at the bottom of this page.

Head of World Vision Tim Costello will propose struggling renters be able to get a special loan to buy their property at this weekend’s 2020 summit in Canberra.

Reverend Costello says the Federal Government could offer some form of security for banks to get involved in a rent-to-buy scheme.

He says it would improve housing equity, especially for young people stuck paying dead money on their rent.

“We have a huge chasm between the renters and those who actually can get titles,” he said.

“So [we need] to really bridge that chasm, to overcome a them and us … with also some Government support to help young people who wish to buy the place they’re renting.”

Click Here To Read The Original Article.

A. You can collect the keys and move in as soon as…

• we have an up to date copy of your credit file and we have processed and approved your application.
• the Lease Option Agreement has been signed and approved by solicitors and…
• we have received all move in monies in cleared funds.

The entire process typically takes a matter of approx 2 weeks or even earlier, as opposed to taking months in a traditional house purchase.

In certain circumstances, it can even take just a few days.

A. We cannot stress enough the importance of ensuring that your monthly rent and monthly Option Premiums are paid on time, every time.

Not only to comply with the terms of your Option Agreement with us, but to also show a future mortgage lender, a timely payment and savings record, in order to qualify for a competitive future mortgage with a good, clean credit file.

The Option to buy can only be exercised provided you are not in breach of your Lease Option Agreement and all payments have been paid and there are no missed rental payments or breaches thereto.

In the event you are in breach, you will be required to clear any arrears and rectify those breaches, otherwise, we will have no choice but to issue eviction proceedings together with a claim for damages and costs.

The period within which you can buy the property will also end automatically on the date the tenancy agreement is terminated.

We sincerely hope eviction will not be necessary, as we are in business to help people onto the property ladder, not off it.

A. Yes. In fact, improvement works often add value to property, thereby increasing the amount of your investment.

Any improvement works requiring major structural alterations (such as extensions and removing walls) we would require you to obtain our written permission in advance of carrying out the work, as there may be legal and/or structural issues requiring clarification and consents in writing.

As you are in the process of buying the property, you will be responsible for all maintenance, repairs and damages that may occur.