Get a leg up the property ladder with LongView’s Buying Boost

First Home Buyers | 20 Nov, 2023

LongView Buying Boost helps you get on the property ladder by ‘boosting’ your equity and helping you through the buying process. Here’s how!

The ‘great Australian dream’ has long been for every Australian family to own their own home. But unfortunately it’s not always as simple today as it may have been 20, 30 or even 50 years ago. This is particularly true for first home buyers or for those who are having to rebuild financially. However, if you’re someone who’s been struggling to get on the property ladder, there’s new help available.

LongView Buying Boost is a new offering that could significantly benefit first home buyers who don’t qualify for a federal government scheme.

So, let’s take a look at LongView Buying Boost, and see how it can help you get onto the property ladder more quickly and easily.

What is Longview Buying Boost?

LongView Buying Boost helps borrowers get on the property ladder by ‘boosting’ buyer’s equity and helping them through the buying process. Specifically this amounts to:

  • Providing additional equity to increase a borrowers deposit. This equity supplements an eligible person’s home-buying budget.
  • Supporting borrowers through the home-buying process. LongView helps buyers find a suitable home with strong capital growth prospects.

In return for this assistance, LongView receives a share of the property’s future capital growth (on the sale of the property). Individuals who take on this arrangement may buy out LongView’s share at any time prior to the sale of the property.

Who is eligible?

There are a number of eligibility criteria for. You must:

  • Be purchasing a home to live in, not an investment property.
  • Be an Australian resident for tax purposes.
  • Have saved or can access a minimum of $100,000 for a deposit and stamp duty.

Additionally, the home must:

  • Be in Brisbane, the Gold Coast, Sydney or Melbourne.
  • Have potential for strong capital growth. This tends to exclude high-rise apartments as well as new builds (such as a house and land package). LongView works with eligible clients closely during the buying process to help them identify the right types of properties.

What is the financial contribution of LongView Buying Boost?

Buying Boost could help you increase your home savings by up to 50%. So, for example, if you have saved $150,000 to cover a deposit and stamp duty, LongView would contribute 50% of this amount. This would take your amount available for a deposit and stamp duty to $225,000.

What compensation will LongView receive?

In exchange for this financial contribution and the provision of support during the buying process, when you sell the property, LongView receives:

  • Their original financial contribution, plus
  • 33% of any capital growth in the property at the time of sale.

If the LongView Buying Boost was less than 50% their share upon sale reduces proportionately.

Of course, there are some additional financial caveats. For example:

  • If you sell the property for a loss in the first four years, you must pay back LongView’s financial contribution.
  • If you sell the property for a loss after four years, LongView shares proportionally in the loss. This means you would repay their initial contribution, less 33% of the loss.
  • There is an incentive to pay LongView back within 12 years of purchasing the property. Each year after 12 years, you would pay LongView an additional 1%. So, for example if you sold after 15 years, you would repay the initial financial contribution plus 36% of the capital growth instead of 33%.
  • You are the sole owner on title of the property and LongView secures the agreement between both parties by registering either a second mortgage or a caveat, depending on the lender providing your home loan.

Additional benefits from LongView Buying Boost

There are other amazing benefits from LongView Buying Boost. These are:

  • LongView has a professional buyer’s advocacy service. They’ll give you advice, validate your property purchase and recommend against any property that won’t get you capital growth.
  • The professional buyer’s advocacy service can also assist you in your negotiations for the purchase of your property. This makes the process easier and will ensure you get the best deal for your situation.
  • There are no payments to be made to LongView during the years you live in the property. But you are expected to maintain the property and seek guidance prior to any significant improvements (such as renovations).

Why we’re partnering with LongView Buying Boost

As a mortgage broker, we know the challenges that many otherwise strong buyers face getting their deposit together and getting into new homes. This is particularly true in a challenging economy. Buying Boost is one solution that will help you better meet your property goals and get you where you want to be quicker and easier.

Of course, there are a number of components to the program, and some considerations for your own situation. We recommend that clients make contact with us for further guidance before making the decision to move forward. Our team is here to help!

So, if you’d like to learn more about how LongView Buying Boost can help you to buy a better home sooner, please get in touch. Our team is proud to be partnering with LongView to help our incredible clients get into the homes of their dreams.

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