An incredible cash windfall...is sweeping the suburbs..
From 25-thousand...right up to 1 million dollars.. yours for the taking..
Now you can rip up your mortgage...by having your home loan paid for you..and join a growing number of families who have kissed their financial troubles goodbye.. A revolutionary new scheme has seen Derek and Anne Williams breath easy...
Derek had just had six years of hospitals and sickness. And everything went you know, we - and on a pension we couldn't afford to do the house. Now we're having it painted and we've had the gutters done and um we had the floor reblocked on all the sides.
Thanks to Homesafe.. their mortgage has been eliminated. It's not a loan...there's no fees repayments. Instead it's a way of unlocking the equity in your home without selling up entirely or taking out a costly reverse mortgage...
Home value $330,000
Cash required $131,000
Derek 75 Anne 75
Homesafe receive 65% of the sale price
Here's how it works...
First Homesafe values your home...in Derek and Anne's case theirs was worth $330,000
They needed $131,000 to pay off the mortgage...do some renovations and retire in comfort.
Taking into account the couples age and property value...Homesafe gave them the money with the proviso they claim 65% of the eventual sale price of the property when Derek and Anne die or choose to sell.
It's a sizeable chunk of their home gone and the amount the Williams' received was less than 65% of the agreed home value -- this is negotiated on a case by case basis...but the pair get to live in the home for the rest of their lives , pay nothing.. and couldn't be happier.
Its enough with not having to pay the mortgage for us to live and even have a holiday if we want which you know we haven't had for a long time.
This is a generation who didn't have access to superannuation throughout their careers so they have a much smaller nest egg at the end of their lives and they really need to unlock some of that equity in their house the way they do that they should be fairly careful about
Chief Business Writer for the Herald Sun John Beveridge says while there's a huge need for this concept...he warns it won't suit everyone...
The bare minimum that would be required would be independent legal independent financial advice and I'd also recommend a session with the family to discuss exactly how this is going to work make sure everyone's happy with the whole deal before it goes ahead.
The family home is really the fourth pillar of the retirement income system. The problem really is being able to access in a safe secure way the actual cash tied up in the home.
With financial backing from the Bendigo Bank...Acutary Peter Zsabo (pron: zay-bo) is the man behind the scheme...
The property owner has the right to live there rent free they can sell the property whenever they want if they want to they can rent the property out and keep the income so we're not buying a share in the house today it's a share in the future sale proceeds. It just seemed too good to be true didn't it?
When 72 year old Margaret and 75 year old Colin Macnamara's business sold for less than expected...they were left wondering how they would ever pay off their increasing loan...
It was the interest that kept building up, it was an interest only loan...threatening letters this sort of thing, it was a really worrying time. Homesafe have completely changed that
Home value $470,000
Cash required $161,490
Margaret 72 Colin 75
Homesafe receive 58% of the sale price
We got $160,000 and we had to pay out $140,000 it's basically left us with $20,000 but we've cleared everything. At the end of the day we still own our house.
What did your family think?
Our son said "go for it mum!
There is an age limit to qualify for the scheme...60 in Melbourne...55 in Sydney...Homesafe is looking for more financial backing to enable them to branch into Brisbane...along with Adelaide and Perth..
It was a really big decision it really was but it was a good one. This is going to help me enormously takes the stress off me. I feel like doing things that I didn't want to do before!
Please note that Home Safe is not in South Australia yet, but is very close to getting here.
If you want to go on the list, contact Home Safe on 1300 307 059