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About Christina from Nexfer

Christina from Nexfer
  • Phone number: 0431833053

Description

We have been running a property investment business since 2000 and have specialised in rent to own properties. This is because not only do we have a positive cash flow but we enjoy helping families move into their own homes. To improve our process, we also became mortgage brokers who understand the issues surrounding refinancing. With over 17 years experience, we can share our insights for both the investor and the purchaser and can also provide consulting service. Please feel free to ask questions.

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$880.00

Sydney Opportunity

Looking to get out of renting ? We have investors who are looking to partner up with people who want to own their own home. […]

912 total views, 3 today

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$650.00

Rent to Own

Looking to get out of renting ? We have investors who are looking to partner up with people who want to own their own home. […]

813 total views, 3 today

homes

$750.00

Choose Your Own Home

Looking to get out of renting ? We have investors who are looking to partner up with people who want to own their own home. […]

3220 total views, 2 today

Do I have realistic expectations of Rent to Own? Case Study

Blog, Due Diligence, Rent To Own, Vendor Finance November 29, 2016

People ask me how Rent to Own works.  The best way would be to give an example.  This example is from a couple of years back.  This family were originally from Sydney and decided to sell up and move to Queensland.  A few years later, they decided to move back to Sydney.  They had started off renting in Sydney which was a bit expensive in comparison to Queensland, but as is our usual typical story, they had to move again because the landlord was selling.  They also were looking after foster children and it was really important to them that they had a stable home for them.

The had little deposit $12,000 and the home in Campbelltown was a little smaller than what they were used to and it needed a little bit work.  The wallpaper was old and ugly in the kitchen! But they decided to do it.  They rented for a couple of years, the property was sold to them 25% higher than the current market when they signed the Lease Option contract.  In the meanwhile, they removed the wallpaper and painted the walls and had a little bit extra to fix up the kitchen cupboards.

As they said to us ” We sacrificed a little for a couple of years paying higher repayments because we knew what the Sydney market was like”.  After 2 1/2 years, they were able to refinance.  As properties do in Sydney especially in Campbelltown area, they had an extra $100,000 equity.  With that money, add a back porch and add an extra bedroom as the kids were getting bigger.

As long as you understand that it is more expensive than renting and more expensive than if you were able to go directly to the bank than I think we can work it out. As a guide, a house that you would rent for $650 usually would be the equivalent of $1,000 per week with Rent to Own.  That’s why we recommend that you first have a look at a home loan and non-conforming loans and use Rent to Own as a last resort.  Some people think that we just keep the rental payments the same.  This would mean that the investor would be losing a lot of money and no investor would be prepared to do that.

3188 total views, 1 today

Tell The Banks Where to Go ! Alternative Lending

Rent To Own, Vendor Finance September 29, 2016

While the majority of lending is completed by the major banks, they are not the only sources of lending.  You can use alternatives.  Below is a brief summary of the three types of lending:

The first is the traditional loan and the most common form of lending where all the major banks sit. This offers the lowest interest rates and costs of all the different loan types.

There are some great policies around now such as low–doc and parent guarantees but all require perfect credit histories.

Non-conforming  lenders. They have a rate for risk philosophy and is usually more suited for people with credit issues. The lower the risk, the lower the rate and the deposit requirement will also vary.

However, Non-conforming lenders can be more flexible with different types of income.

The rarer Rent to Own or Vendor Finance solution.  The basic principal is that you purchase the property from an investor over a period of time. You live in your home with the aim to refinance through to more conventional lenders.  This type of lending has been around since the 1940’s but is not that common now.

3079 total views, 4 today

The 3 Ways to get Rent to Own to work for you

Rent To Own, Vendor Finance November 6, 2015

Rent To Own is a stepping stone into home ownership.  The interest rate is usually higher so you would want to get yourself to refinance as soon as possible. There are a few ways to do this:

  • Stay in the home until the property increases in equity and/or
  • Improve the value of the property so that it increase in value and/or
  • Pay a higher amount until you are able to refinance.

If you are looking at buying and selling within a year,   then it probably isn’t for you.  Even if you are very experienced at renovating, it takes a while before you can make a profit because you would still need to recoup your costs of renovating and also cover your costs of stamp duty.

If you intend staying in it for more than a couple of years than it is probably worth it for you, PROVIDED you have an exit strategy.  You must know what you will need to do to refinance.  For self-employed people it is usually getting your taxes done.  For credit impaired it is making sure that you clear your credit and for people that do not have enough deposit, you make sure you increase the equity in the property or save up or pay extra on the property to get ahead.

Make sure that you use it for a stepping stone until the property is entirely under your name, with the aim of refinancing.  You need to ‘keep your eye on the prize’ so to speak and make sure that you are meeting the requirements of refinancing.  Right now is a great time for refinancing as the interest rates are low and property is higher.  All the lenders are offering great deals to owner occupied properties.

5294 total views, 1 today

How to Get A Rent to Own Home – 5 criteria points

Rent To Own, Vendor Finance July 11, 2015

The Great Australian Dream is to Own your Own Home,  We get hundreds of phone calls asking us to give people a rent To Own property.  There are so many people that are just sick of moving again and again.  The questions is ‘how do you choose the best person’ ?  Why didn’t we Get Chosen?

I have some tips on what I look for in purchasors:

1/ Deposit  – how much money have you been able to save is always a plus.   Save ! Save ! Save!  Deposit from parents is also good.  This tells us that your family is supportive of you and would also help you if there was an issue.  For people that can save, we have the flexibility to do so much more for you.

2/Income – while we are able to use Centrelink income, if it is your sole income you will not be able to afford the property.

3/Personality – we look for people that we feel that we could have a long term relationship with.  We like to know that if it is a couple, that both parties understand the concepts and are both as eager as each other.  If they got this far, we would do rental reference checks to make sure that we could work well together.

4/Stability – we check that they have supportive people around them and they don’t move from town to town.  It is quite rare that we can consider people who want to move from a different town or city.  We would consider them if they have a job offer.  However, we can’t really consider them if it means changing jobs and there is no guarantee for a job.

 

The truth is that they are not too dissimilar to banks.  However, because we are smaller than banks, we get to have a bit more flexibility.  Also we get to meet a lot of people face to face, so we get a better feel of people. Because we get are small we can assess an individual and have broken every rule at least once.  However, there were circumstances that we could make a judgement call on.

At the end of the day, we want the people that we can assist and work with as a team to get their homeownership.  Because we can be with people for usually a minimum of 3 years, there is a possibility that something will go wrong such as a temporary loss of job.  We want to be able to make sure that we can work any difficulties through.

6237 total views, 2 today

How To Make Money When You Can’t Make Your Repayments

Blog, Rent To Own, Vendor Finance March 23, 2015

Depending on where your rent to own home, you may just be able to make money even if you can’t make your repayments.  By this, I mean if you are proactive enough and can see that you are not going to be able to make your repayments, you can try and negotiate to sell the property and make some money if your property has increased enough.  I have found this to be the case in Sydney and in surrounding cities and it will be dependent on your contract.

The worst thing that you can do is just sit there in denial waiting for some big miracle or a big lotto.  It is critical that you learn what is realistic financial.  If you can see that you will be getting into trouble, do something proactively and start planning what you will do.  If you sit there and get a default notice work out something before you get a termination notice.  If you know that you it is will be long term then it is best if you discuss selling the property and taking some money with you.

The key is to be realistic and get out of the denial stage.  Denying the problem and hoping that it will work out will get you kicked out and with a debt that will include solicitors fees as well.

If you acknowledge that you will lose the property than you can work it out to make some money.  I’ve had one client where they were going to declare themselves bankrupt.  This is a bad idea when you are rent to own as you could lose the right to own a property and to be able to refinance.  However, we worked out a budget and gave them advice on how to deal with creditors.  They have stuck to a realistic plan to get back on track and they are on their way.

Know when you are in too deep and ask for help.  Being in denial could make you lose opportunities.

3701 total views, 1 today

The Number #1 Reason Why Rent To Owns Fail

Blog January 4, 2015

Despite what people might think, the number reason why  Rent to Own fails, is not a bad credit history nor because of a loss of job.  While all these reasons can lead to the forfeit of the contract for the home, the number reason is actually separation and/or divorce.

The Australian statistics estimate that around at least 1 in 3 marriages or unions end up in divorce or separation.   In a separation/ divorce scenario, the property is included as an asset and split up between the two parties.  It usually means selling or handing back the keys in if they separate within the first two years and usually cannot afford it with only one income.

We are finding that a lot of couples are now opting in putting the contracts into just one name.  This is only possible if the application is successful with just one applicant’s income.  There are also other issues so I would suggest that you talk to a solicitor and get proper advice before considering this.

Another complication is with child maintenance.  You need to declare the child maintenance.  We have had one person who could afford to purchase a property on his own.  He was previously divorced and had children in New Zealand but was not paying child maintenance.  However, government asked him to backpay all the unpaid child maintenance pay future child maintenance.  This now made the house unaffordable and he decided to hand back the keys.

It is difficult to predict who will be separated or not.  However, it is good if you the applicant is more confident and comfortable in the relationship, so never stop working at the relationship ! !

2929 total views, 0 today

A Chance of Home Ownership for the Non-Bank Approved

Blog, Rent To Own, Vendor Finance December 23, 2014

If people are willing to work hard and make a real effort, there are ways of getting into your own home.  The key here is, is that you need to be aware that you may have to lower your expectations a little to be realistic, but if you want your own home, we can help you.

There are a few ways listed below:

1/ Non-conforming and private investors can lend you money and you can purchase the property in your name.  They are usually higher interest rates than banks depending on the risk, but otherwise is very similar to a bank lending you money.  This is where I would consider people who have been injured at work and have received compensation.

2/Delayed Settlement – this is where you can start the purchase of the property and live in the property paying a lease amount with the aim that within a specified period you will be able to get your own finance sorted and complete the purchase.  This is common where the seller usually wants to stay a little longer in the property and it is common for a few months.  The extended settlement contract is now being used for a few years.

3/ Vendor-finance – this is where the owner lends you the finance until you can get your own finance.  This means that the property is not fully in your name until you finalise the purchase by refinancing.

4/ Lease Option – this is where you are renting the property at a premium with the right to purchase the property by the end of your lease.  You will need to seek finance and ensure that you can get a loan at the end of the lease.

2472 total views, 0 today

How To Negotiate the Best Deal

Rent To Own, Vendor Finance September 3, 2014

When we advertise for Rent to Own, we usually put the words ‘negotiable’ on our internet advertising.  So many people call us try to negotiate the price. We may advertise a property as $510 with $10,000 negotiable.  It always surprises me the number of people that call me and ask if they can have it for $350 or $400 without a deposit.  Not only that there are people who earn $500 per week that would like us to reduce the rent.

I think that at the forefront of a negotiation is that it should be a benefit to both parties.  I get the impression that when people try to negotiate, they don’t understand that we are not happy to lose money over a deal.  You need to remember that you need to offer something that is agreeable to both parties. An application form is very important in negotiating.  We had agreed in principal with the deposit that this couple offered and the weekly rent that they negotiated.  However, once they put in their application, we found that they had very poor rental references.  They were able to go ahead with it, however they were considered a higher risk and we renegotiated the terms to cover our risk with a higher deposit.

When you negotiate, it is important to know what is important to an investor.  For us they are:

What sort of person are they and how difficult are they to work with and having references?

How much deposit and where did they get it?

How likely are they to refinance and are the willing to fix up their taxes to refinance?

How much income are they earning?

Are they realistic?

2770 total views, 0 today

How To Conquer the New Credit Laws and Refinance

Blog, Due Diligence, Rent To Own, Vendor Finance May 26, 2014

The number way to Conquer the Credit Laws is to pay all your bills on time!  As of March this year, if you are more than 5 days later in paying your bill, it will be recorded against your credit file.  The aim is that there will be a greater visibility and information sharing between credit companies.

I strongly recommend veering away from any credit and moving towards cash or debit system with no credit cards.  Be careful with ‘interest free’ and  ‘buy now , pay later’ clauses.  These are actually credit contracts and most people are not aware that they go on your credit file.   If you don’t have the cash to purchase now, then save and wait until you have enough money to purchase it later.  It can cost you more than you think.

Below  are some issues that have been brought up while being in this line of business:

  • Financial counsellors – will assist with budgeting.  They will help you plan for your bills and put aside money for them every week.  Usually quarterly and annual bills such as car rego, insurance and rates get forgotten.
  • Keep away from credit cards if you end up paying interest
  • Don’t start up a new business without a savings buffer or start off as a part-time job so that you still have cashflow.  So many people get into strife by starting a new business.  It takes a couple of years to get your business working well.
  • Have income protection if you are self-employed
  • Always make sure that you have extra money saved away for a rainy day.  Don’t be on your last dollar from week to week, no matter how little you earn.

5696 total views, 2 today

The number #1 Way to Get Kicked out of your home

Blog November 8, 2013

Most investors would be happy to work with someone that has lost a job or may have temporary financial issues as we all go through it at some point.  (As an aside – The best way to keep afloat is to make sure that you have a buffer account that is money that you save up and do not spend.  Keep it in a separate account and make sure you only touch it when you miss a payment).

The most annoying thing for a property manager and an investor is not returning phone calls when you miss a payment.  In a recession it is understandable if someone loses their job.  The National Consumer Credit Protection Act or NCCP also requires that you provide some space for people who have gone through some hardship.  Similarly, the Department of Fair Trading can accommodate you to some extent.  However, this can only be achieved if you have open communications with your property manager.  You should aim to have a mutually beneficial outcome.

Be proactive. When you first lose your job it may be a bit of a shock.  You will need to contact your property manager and advise them that you have just lost your job and that you will be looking for work.  I would usually allow someone to pay a reduced weekly amount for 3 – 6 months.

If you don’t communicate and don’t answer your phone, you will be certain that you will receive a termination notice.  It does not give the property manager any other choice but to terminate you and no special consideration can be given.

Also note, that if you have been in the property a little while, you could have equity in the property.  You could have the right to sell it and get some money back.  However, when you stop paying and do not enter into an arrangement, you forfeit this right.  This could cost you a fair bit, so make sure that you check where you stand before you burn your bridges.

5002 total views, 0 today

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