A new survey from Rate City found that 90 percent of loans available in the market have no age restriction. This means that 75 year old Aussies can take on a 30 year loan and be in debt until they reach 105, news.com.au reported on
In response to this report,
"There are two common reasons why seniors choose to enter the property market at an elder age. First, it's only now that they are able to save up enough money to pay for the deposit fee. Second, they're acting as guarantors for their children when the latter applies for new home loans with the banks. Regardless of your reasons, acquiring new debt during your retirement is not advisable for anyone, because there's a big chance that you'll default on your payment. I am able to say this, since your source of income is much smaller compared to when you were still working," according to
"So, rather than risk losing the fruit of your life's work for another chance of homeownership or property investment, I recommend seniors around the country to find an alternative strategy to buying houses for sale without spending a lot of money or applying for a new home loan," he added.
"A better alternative is to have a buyer negotiate for flexible payment terms instead. For instance, rather than take out a new bank loan, the buyer may negotiate to assume the existing financing and pay the remaining equity in increments. The flexibility makes it more convenient for the buyer to make the purchase. At the same time, a seller will be able to move away from unwanted debt much more quickly," Rick explained.
"Funding your dreams of home ownership or creating a real estate portfolio with yesterday's tolls is, perhaps, getting outdated. We must all realise that there's a big global move to move away from debt into more stable income streams, and that's what seller finance strategies can do for the brave who take the road less traveled to real estate wealth," he said.
The Creative Real Estate Podcast is a weekly broadcast featuring
Australian property investment specialist,
His innovative low-risk, high-reward approach to Australian real estate investing has been featured in a variety of television programs and magazines, including Today Tonight, Hot Property and Australian Property Investor. His real estate book, published in 2012, ''How To Buy A House For A Dollar', voted by
As well as conducting free seminars, workshops and conferences in the
Go to CreativeRealEstate.com.au to listen to Rick's free podcasts.
Read the full story at http://www.prweb.com/releases/home-loan-for-seniors/rick-otton-analysis/prweb11961777.htm
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