Hux001Member@hux001Join Date: 2003Post Count: 108
Anyone heard of this company in Melbourne? Apparently it’s a bit like a reverse mortgage in that on say a 200k house they give you a lump sum of around $25k up front and then pay you $736 per month for 20 years. They also take care of rates and building upkeep during that time. You have to pay them a nominal $1 a year rent. It’s for people over 65 years of age.
There are some obvious issues that come to mind.. It’s a little like vendor finance and after the 20 years your house is probably worth 3 times what they’ve paid you. What happens if you live longer than the 20 years?
Personally I think a reverse mortgage from St George or the like would be better – however I don’t know about this company and it’s an elderly friend asking for advice. Regardless I will get him to talk to a solicitor but wondered if anyone here had heard of them?Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493
Been going just over a year. Will pay up to 130% of current property value over the term. Pay all property costs. Does not affect pensions.
Not much more information is available about them unless you book an appointment where the hard sell will probably occur. Sounds ok but I would rather learn more about them before dealing with them.
Mortgage Adviserkay henryMember@kay-henryJoin Date: 2003Post Count: 2,737
Website address is: http://www.moneyforliving.com.au/
It says on the website that the term of stay is as long as the people shall live- so I guess it’s a life-long tenancy- guaranteed. It also says that the company can pay up to 130% of the property value… which is interesting.
It would be better if the web page had more detailed information- rather than asking people to have a consultant speak to them- sounds like it could be a hard sell to elderly people- which is never a good thing.
Can’t find anything else about it on google.
Oh… this is a bit lame- from their website:
> Many Satisfied Customers
Many Satisfied Customers
The many satisfied customers of Money for Living are now enjoying the little luxuries that come with increased disposable income. Whether it’s a holiday, theatre tickets or even a new car.
That’s just marketing- not news… one would think ‘news” would be some media they have received.
kay henryJenny1Member@jenny1Join Date: 2004Post Count: 269
Just do a search on reverse mortgage there is a bit more info written [biggrin]
Jenny1Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493pfsfinanceMember@pfsfinanceJoin Date: 2004Post Count: 171
They actually purchase the property and give the people living there tenancy for life. They will give the person a lump sum and then pay the rest of the funds owing on the purchase contract over an agreed term.
Wholesale Mortgage Lender that deals only with brokers.
20 years in Finance Industrykay henryMember@kay-henryJoin Date: 2003Post Count: 2,737
Well, buying an elderly person’s home, cashing them up, and giving them tenancy for life can’t be so bad… Unless it’s some major rip-off- and at first sight, it seems ok… then the only people who would be upset would be the whingeing children of the elderly person- worried about their inheritance.