Afterpay your Home Deposit?
After-pay is one of the most sought after ways to pay for goods at the moment. What is After-pay? It is a virtual lay by system allowing you to purchase the goods such as that pair of jeans you so desperately want (and maybe cannot afford!) over a payment plan system (usually 4 fortnightly payments in total). So, perhaps your someone that has issues putting the deposit away for a house but never fear, there is a developer offering a similar service however it means you can move into your new apartment today and pay the deposit later! Sounds good doesn’t it?
What is it?
They call it “preposit” a scheme launched by Apartments WA that allows homebuyers to move in to a new apartment before they have saved a deposit! With Afterpay being such a success with clothes – encouraging people to shop in this slow economic climate – it was WA Sales Manager Chad Toquero that proposed preposit.
“With Preposit you get the keys to your apartment and can move in straight away. Then you can go about saving your monthly rental payments which will be stored away and returned to you when you have enough to pay the deposit,” he said.
“Think of it like Afterpay – The person agrees to buy the property now and gets to move in straight away, but the property is only settled once they have saved their deposit.”
Whats the catch?
Having been for-warned in life to never trust a sales man what is the catch? Well like with any large investment make sure you read the fine print and also make sure that whilst they are collecting funds you have a strong agreement in place. Make sure the apartment you are dreaming of owning is being sold to you at fair market value, shop around! Just like you would for those perfect pairs of Jeans! Make sure that you can handle the budget. You may find your self not only struggling to pay the mortgage but also the deposit loan too – budget, budget, budget. Take into account worst case scenarios, for example what happens if you default? Are you kicked out the next day or do you have the same rights as tenants?
We all agreed paying a mortgage beats paying rent and this scheme was thought up to alleviate and assist the apartment market. Just watch the fine print and maybe, just maybe poposit is just the thing for you.
If you would like more information on preposit click here.