by Jeff
7. October 2011
A lot of people are asking what an owner financed home is, and are probably interested in getting a place of their own as well. Simply put, vendor financing is when a vendor or seller of a home decides to finance a portion or at times the whole amount for the property (mortgage, etc) and then offers the property to you as rental. It's these types of deals that are often is simply like lease to own housing options that provide buyers with flexible housing terms making owning a place of your own possible with lite and practical payment options.
Now the common misconception of people is that when they go with lease to own properties they are limited to the number of properties that are managed by the owner or business. That’s actually what makes vendor financed homes unique, more and more vendors are actually agreeing to go with vendor financing and offering their properties are the practical lease to own scheme making it accessible to more potential home owners. It doesn’t take rocket science to understand how vendor financing can make owning your own dwelling easier and practical without sacrificing the quality and diversity of houses available.
What’s in it for the seller in this kind of setup and why finance the property when they can sell outright? The answer is simple, a steady income through rental and a sure market in the event of financial instability. We all know that the Australian home market has suffered over the years from the housing crisis and right now not a lot of people can really afford to buy a place for themselves and oqnwe financing aims to solve this issue with easy and affordable housing solutions. The seller gets to keep the deed/right to the property up until the time that the tenant gets to purchase the house outright safeguarding the point of interest of the seller.
If ever a buyer or family ever needs to move in to a house badly and time is of the essence then a good alternative to renting would be to check out owner financed homes. Not only are the term flexible, you may actually negotiate with the seller for inclusion of essential furnishings to the property and even low repayments that would fit your budget and weekly income.
All in all, owner financed homes are the way to go whether you’re on a limited budget but need a decent housing solution, or if you’re out on a house hunting trip but won’t be able to procure a mortgage after at least 2-3 years. Why go with conventional renting when you can actually invest on a lease to own property with the option of buying it once you have enough funds. Clearly owner financing is the new way to own a property without worrying of big down payments or repayments that simply goes down your land lord’s pockets.