Fully Financed Deposit Anyone? Government Practically Gives You Yours!

There has never been a better time to buy property, using more alternative methods, if you are flexible and have some nerve.  And I’m not talking about risk here, but the nerve to look and then take action outside the box.

In addition to the excellent model of securing your next home for todays lower prices on an option to buy in the future, while living in said future home and having your rent deducted from the eventual purchase price (aka rent to own or rent2own) you now have another very attractive alternative.

We have recently heard about a brilliant – and not very well publicised yet – scheme that the government have launched, to help first time buyers get onto the housing ladder – totally different from shared ownership schemes and which means that you can CHOOSE the property you want to live in, and then get help to buy it  Anywhere!

Open Market HomeBuy is a low-cost government-backed home-ownership programme that aims to help people to secure 100% funding of the value of their first home. It is a flexible equity loan scheme designed to help households earning up to a maximum household income of £60,000 a year to buy their own homes on the open market.

There are two Open Market HomeBuy products, which are designed specifically to help local authority and housing association tenants, key workers and others who are not able to afford to buy a suitable home in an area where they live or work without assistance.

Both products are available throughout England and have been designed to suit a wide range of personal circumstances.

MyChoiceHomeBuy / Ownhome

Ownhome is provided by a partnership between Places for People and the Co-operative Bank and is part-funded by the Government. Places for People is an equity loan provider in its own right.

Key features of Open Market HomeBuy

• You can choose between two distinct products, MyChoiceHomeBuy and Ownhome;
• You can borrow between 15% and 50% of the value of the property at a low, or no, interest rate;
• If you qualify for a mortgage of £110,000, for example, you could potentially purchase a property worth up to the current national house price average of £220,000;
• If you took up MyChoiceHomeBuy, you could get your conventional mortgage from a range of lenders; and
• If you opted for the Ownhome product, you would have a five-year interest-free period on your equity loan.

For both products, when repaying the equity loans, you would have to share any increase in the property’s value with the equity loan provider.

READ MORE HERE >>>

There are private initiatives doing a similar thing, and there is a company in Manchester, established 16 years ago, who offer a similar service to first time buyers, except that the interest amount paid on the deposit loaned is EVEN LESS!

And they offer a similar service to investors.

Why would they do that, and how do they make their money, I can hear you ask?

I’m like you – I ALWAYS want to know how folks make their profit and once I do, I feel a whole lot more comfortable.

By buying large job lots of property, wholesale, from the banks and building societies where they are repossessing, and then selling onto investors at a profit – but still essentially at wholesale prices.  That’s how.

Find out more about that here >>>

Exciting time ahead in property methinks.

Inside Track Seminars Kerput!

In the wake of the news that the Inside Track Seminar company (not apparently the property arm) has gone into recievership (something Andy Shaw predicted would happen months ago) and the news that mortgages are getting harder and harder to find unless you have a GREAT track record.  However, with 30,000 new rental homes being needed every year for the next 10 years, the market is growing and this is a short term blip according to pundits. 

Tighten your belts, for the next 12 months, watch Andy and Greg’s free videos and EDUCATE yourself about what makes a great buy to let.

Here’s some excellent tips from the superb This Is Money website:

1. Do the figures stack up?

The traditional criteria with buy-to-let was to save a deposit of at least 15% and ensure that rental income would cover monthly mortgage repayments by 125%. As it got harder to meet these restrictions, many lenders eased them. This has shifted buy-to-let from a business based on steady rental income, to one where potential landlords gambling on house prices rising to deliver capital growth.

But the restrictions existed for a reason – to make sure landlords could cover gaps between tenancies, income exceeded bills and give room for rate rises.

Read more..

Buy To Let Booms!

The Lettings market has seen annual growth rising to 2.5 million tenants in the last 10 years, and government statistics point to the need for a further 30,000 units PER YEAR for rental, for the next decade reports wwwPropertyToday.co.uk .

That means there are three hundred thousand – 300,000 – new rental properties needed in the UK in the next decade.

Could your property portfolio contribute to this rental housing crisis?  What should you buy?  How can you get started?  What pitfalls should you avoid?

It’s all here in this amazing series of three short videos about getting started in property investing.

In these videos Andy & Greg cover everything you see on this screen (just click to read) and much much more, like how property is essentially free (even your own where there is NO tenant paying for it) 

http://viralurl.com/moneygym/passivedvd

Get Property For Free

Did you get chance to check out the video “interrogation” video of the 2 UK Multi-millionaires – my mates Greg and Andy – who I mentioned in my previous email?

http://viralurl.com/moneygym/passivedvdmg

I have seen them present their business many times, and I was amazed when, watching this again (coz I love some of the stories and jokes!) I realised something completely NEW because it was described in a different way again.

Sometimes we need to hear something many times in a different way, before we get it, or before it moves from the place where we say “Oh! I know that….” to the place where we can say “Oh my gosh, I really GET that now!”

For me, this time, it was – in Section 2 or 3, I can’t remember which one now, where Andy was talking about how property is essentially free, and I thought great, he’s going to explain how, if you put some money into a property then you are able to pull it out again, then that makes it free.

O no!  He went on to say something I have heard him say before BUT IN A TOTALLY DIFFERENT WAY and I really got it this time.

It’s about how, if you buy a house for say £200,000, and you have an 85% mortgage of say 6% (interest only), and you are paying £10,200, or £850 a month, and you live in it (so there is no tenant paying your mortgage), then your property is still totally free.

The interviewer, Rob says, but how CAN it be?

And Andy replies “how long have you had your house Rob?” and Rob says 15 years.

Andy asked (and I’m remembering the figures here so may have them slightly off but not much – watch for yourself!!)

What did you buy it for (£46,000)

And what is is worth now? (£170,000 or thereabouts)

And what have you paid in mortgage?  Rob says £300 a month.

So Andy says…..

Read more..

Genius Property Investing

A great example of the stirling support Silver and Gold members of the Money Gym Club enjoy was shown on a recent exchange between members of our private Money Gym google group.

One of our Money Gym (Gold) members was pondering whether to sell her existing house or let it out, having found her dream cottage in the country.  She realised that selling and buying more 1 bedroom flats would be financially better in the long run, but the effortlessness of letting her existing house, and buying the new one with money pulled out of the existing one, which would then be paid by the new tenant, was very appealing.

She laid it out thusly to the group:

Hi everyone

I have a situation on which I would most welcome any comments, advice or insights. I have decided to move house and have found a property. I have to decide whether to sell my house or alternatively keep it, obtain a buy-to-let mortgage and rent it out. I currently have a mortgage with a draw down facility. This mortgage is portable so I could move this to the new property (unless they were unhappy about me keeping existing property with BTL re-mortgage???)

The advantages and disadvantages I see are:

Read more..