All Topics / Help Needed! / HELP – this rent trap is killing me!!

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  • Profile photo of aquarius_2aquarius_2
    Participant
    @aquarius_2
    Join Date: 2001
    Post Count: 2
    May 3, 2004 - 7:08 am

    Hi guys,
    How can i buy a house and stop paying rent?
    this is my situation:
    -single parent, 2 children, receiving rental assistance,total pension $400/wk
    – have small wage of $250.00/wk at present as just formed a company in the medical industry
    -$10,000 in savings
    -ex bankrupt complete discharge 2006

    Is VF or LO my only option here?
    I do not want to renew my rental lease, as have been paying rent for far too long..5 yrs..
    I would appreciate any constructive info,
    cheers to all!!
    [thumbsupanim]

    Profile photo of wealth4life.comwealth4life.com
    Member
    @wealth4life.com
    Join Date: 2003
    Post Count: 1,248
    May 3, 2004 - 8:35 am

    Please see an experienced financial advisor to produce a personal strategy for you, most decent advisors will give you free advise for the first consultation.

    Without being a smart a..e, cut your credit cards up bar one and start a savings plan, yes its hard but welcome to life … good luck

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196
    May 3, 2004 - 9:46 am

    Hi Traezi

    Vendor finance may be one option for you but even that is problematical.

    Vendor finance can be broken roughly into 2 techniques; instalment sales contracts and lease options. The lease option would probably be best for you as you would most likely lose your rental assistance with an instalment sales contract.

    However, to be realistic, nearly all lenders, including vendor financiers (wrappers) would not like to see you spending more than one third of your gross income on your house payments. That comes to about $216 per week on my claculator.

    Next it comes down to your personal situation. Do you live in an area or can you move to an area where the houses are cheap enough to allow a payment of $216 per week to be viable. And is $216 per week too much out of an already tight budget.

    For your planning purposes, a payment of $216 per week would give you a borrowing capacity of approx $140,000 at 7% over 30 years.

    If you would like to continue with your enquiries, leave your details on the Vendor Finance (Wraps) Association’s website and I’m sure somebody will get in contact. Their website can be found at:
    http://www.financewraps.asn.au

    I hope this helps.

    Cheers, Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of aquarius_2aquarius_2
    Participant
    @aquarius_2
    Join Date: 2001
    Post Count: 2
    May 4, 2004 - 4:02 am

    Thanks guys for your replies!
    By the way, I have no active credit cards, have no loan repayments or debts…and do have a savings plan in order.
    I also have a 50% share in overseas property = $200,000,but am told cannot use this equity, as property not here in Australia.
    Thanks Paul for your constructive help..

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