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Originally Posted by parawolf
Just a thought - I am by no means qualified to give financial councilling and I don't think anyone over a message board forum would be either regardless of their real life job.
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Lol. Unless AFF has an Australian Financial Services Licence and we are Authorised Representatives
I dont see ASIC granting such a licence. But I digress....
There are some amazing innovative mortgage instruments getting around at the moment.
Im sure you're familiar with the concept of reverse mortgages... you're old, retired, have paid off the house... the bank will lend against the house... no interest payments... but the bank sells the house once you "pass on" - and that's how they make their money. A lot of people have reeled back in disgust when ive told them about these - but... let's say your significant other has passed away, you have no children/next of kin... i think its a good option. Will let you really enjoy the later days of your life.
And a new one that should be hitting the market soon, an American innovation (suprise, suprise) known as a shared equity loan.
Basically, the bank lends you 80% of the value of the house - just like any other mortgage. 80% is an important figure as it alleviates the need for mortgage insurance which you would all be aware is very expensive.
A third party (another bank) comes to the table with the remaining 20%. They lend this to you interest free. However, when the day comes to sell up - they get their 20% back.... plus 40% of the capital gain realised on the property.
An amazing idea IMO which will allow a lot more people to buy a home. I dont think anyone here is offering it *yet* but its got the potential to revolutionise the mortgage markget IMO.