Following its formation in August 2010, the Haigslea Group progressively assembled a team of over 20 extremely well qualified and experienced professionals to progressively develop and tie together the “backbone” required to allow Assquire® (see http://assquire.com.au) to come to market in Australia in a scalable way, and to market sound the concept through the finance and property industries, including funding and distribution channels, so that the product could be progressively refined for optimum customer and business outcomes and be appropriately priced for market.
Below, we explain how Mortgage Alternative (and the Assquire® system and Purchase contracts with Mortgage Alternative home buyers) offer lower up front costs, no mortgage insurance and peace of mind with no debt for up to ten years, whilst also offering you the prospect of greater choice of locations for your home (once more property listings appear on our Assquire® website over time).
But first let us tell you about this great Australian born innovation set to change the way Australians invest in residential property and buy their homes, living in the home debt free for the first ten years.
Who Are Haigslea Group, Haigslea Residential Limited and Mortgage Alternative Pty Ltd?
Haigslea Group was first formed in August 2010 and worked quietly in the background on product design and development for many years. Some of the management team can be found on our Assquire® website, which explains the higher yields to investors and their position more clearly.
This Mortgage Alternative website is for home buyers struggling to save the usual deposit requirements to either 1. buy their first home or 2. to trade up to a better home, or 3. who are recovering from a personal setback like divorce or relationship breakdown, and looking to re-enter the home market.
To cut a long story short, in February 2014, Haigslea Group incorporated its first wholly owned subsidiary, Haigslea Australia Funds Management Limited (HAFM) and embarked upon the preparation and issue of an Information Memorandum and the commissioning of an independent ratings report for its first residential Mortgage Alternative Residential Fund, which was issued in May 2014 and was independently rated investment grade for the institutional market. Discussions on institutional involvement are continuing to progress today, but in the interim, landlords will supply the housing stock for MA buyers to buy, because the accelerated returns to landlords compared to renting are just so much better.
In the longer term, institutional fund involvement is important to home buyers, as it will ultimately take the Assquire® funding channels to allow you to buy your dream home well beyond those properties or homes/units/townhouses currently owned and rented by 1.9 million Australian landlords, and now (in some cases) to be simultaneously sold and rented to those in the private rental market using MA, to give first home buyers and others even more home choices into 2016 and beyond, as an MA home buyer, so that they can own a home in retirement.
Assquire® and MA are also important to institutions and Australia, as it keeps Australia’s superannuation monies invested in Australian residential property at much higher yields than ever available before, and that creates more jobs for Australians -especially if they buy new homes.
In that case, the MA buyer in future will potentially buy from a Residential Fund that will own (in time, not now) a number of properties to be managed for them by Haigslea Group and its future real estate sub-licensed Assquire® agents, and in a fund that will be Assquire® sub-licensed, but run by the institution’s own fund managers who will also take Assquire® sub-licenses. Does that make sense? In short, once this is in place from 2016 onwards, it will allow you as an MA home buyer to get more home product choice faster and from any number of sources local to you!
In November 2014, Haigslea Group commenced to also establish (ahead of launch to home buyers) a non-institutional strategy to allow individual private residential property investors to also supply housing stock to be managed by Haigslea Group and their sub-licensed real estate agencies accredited and trained to use the Assquire® system. Real estate agents encourage landlords to swap over to the system because of the accelerated returns to their landlord clients, and the higher valuations that Assquire® property portfolios offer a real estate principal, compared to rent roll multiples. A win/win/win.
Landlords become licensed by MA (see below) and thus gain access to the opportunity to use Assquire® to list their own residential properties on our Assquire website (see below link), and to access the accelerated yield and recession proofing aspects that Assquire® generates, without having to be part of a more complicated pooled funding arrangement run by an institution.
In July 2015, HAFM changed its name to Haigslea Residential Limited with the intent to form its own property management and funds management arms during FY 2016/17.
In February 2016, HRL received its real estate agency licence in Queensland from the Office of Fair Trading.
In August 2016, HRL incorporated its leasing administration arm, Haigslea Australia Leasing Pty Ltd ACN 614 295 144, as a wholly owned subsidiary of HRL.
About the Australian Intellectual Property Owner and its Licensing Role
Mortgage Alternative Pty Ltd (“MAPL”) was incorporated in September 2013 to run a research pilot with would be Mortgage Alternative (MA) home buyers to both test customer demand for the product and to provide the early metrics to show the institutional capital markets that there was indeed customer demand from home buyers for a new alternative to a traditional mortgage (where there are fire sale risks if the buyer loses their job or becomes ill) or to renting (where all capital growth goes to the landlord).
This successfully and quickly generated 72 Expressions of Interest from just 4 Facebook advertisements and with no mainstream radio or television advertising used over the four month period that it ran in the market. No distribution channels were used or permitted to be used at that time either to promote Mortgage Alternative to home buyers, as the product was not formally available for use by home buyers at that time. It was a customer research phase only. Nevertheless, 45 of those customers were conditionally accepted, pending business launch – which is now occurring in 2016/17.
In July 2015, MAPL acquired the Australian intellectual property that comprises the Assquire® system.
MAPL lists properties in Australia on BuyOrInvest.com.au, upon application, for project marketing companies, new home builders and to other vendors of established homes (via their licensed real estate agent), being institutional and Mum and Dad residential property investors, who use the Assquire® system to make more sales faster.
MAPL also licenses HRL which will in turn sub-license:
- the real estate industry to deliver its usual services for established homes, as they currently do for conventional sellers, and
- mortgage brokers to find both investor buyers and MA home buyers
HRL will perform the property management function for some new homes and the “non -real estate agency” part of the Assquire® system functions for established homes.
As an MA home buyer, you do not need an Assquire® licence to use the system. Only MA Residential Funds and businesses that distribute the products or builders and project marketing companies that sell homes as a business are Assquire® licensed and the residential property investors apply on line at http://assquire.com.au/assquire-application-process/ . Their application process is explained at http://assquire.com.au/assquire-application-process/ .
MA buyers can view:
- properties for sale to them now by Assquire investors at https://buyorinvest.com.au/buyers/; and
- additional properties that might be coming up for purchase first by Assquire® investors (sold by developers/builders or current home owners at https://buyorinvest.com.au/investors/) and for on sale and lease by those investors using Assquire® to MA home buyers at https://buyorinvest.com.au/buyers/.Presently, as this is a new product, there are currently only limited properties available for use with Assquire® in South East Queensland, but this will progressively change.
MAPL and HRL collectively offer a new channel of buyers to these markets by managing the vendor listing, the current landlord/owner listing and MA buyer home occupation and purchasing processes – and allowing credit worthy buyers assessed by HRL to move in sooner, with a lower deposit requirement and no mortgage debt for up to ten years.
HRL services the needs of both the investors (current landlords or established homes buyers via its Assquire® sub-licensed real estate agencies, who enter into service level agreements with HRL) and Mortgage Alternative buyers who use the Assquire® system to sell and purchase residential properties, with the assistance of accredited product agents like real estate agents and mortgage brokers trained in their roles as part of the implementation of Assquire® contracts. The usual property management systems that real estate agents use to report monthly to investors who rent a property to a tenant are also used to report to Assquire® investors on the cash inflows and outflows under the Assquire® system of purchasing and selling residential properties.
MAPL and HRL have each created a management team with the skills to compete and expand in a rapidly changing marketplace. These skills cover the broad markets of fund management, real estate, finance, asset management, credit and risk management, insurance, information technology, product distribution and marketing. New appointments to the consulting team and of more operational staff are intended to occur in future as the business develops further.
The real estate agencies and builder/developer, mortgage broking and financial services sectors offer the opportunity for substantial product reach to investors and home buyers.
For sub-licensing, website sponsorship or joint marketing opportunities, or to invest in either MAPL or HRL as a sophisticated investor or institutional investor, please contact us at firstname.lastname@example.org
How Property Investors and Home Buyers Apply Now
Residential property investors apply on line (at the links shown above) to use the Assquire® system to buy on conventional terms from a vendor/builder (unless they already own the property – we take those applicants too), then sell and lease residential properties to MA approved home buyers (called Assquire® investing). HRL assesses both the investor and the home buyer, and assesses the suitability of all Assquire® properties listed for sale on the Assquire homes for sale website.
Owner occupiers buy homes for owner occupation (called Mortgage Alternative or MA home buying). MA home buyers cannot buy to rent it out (they must live in the property right up to settlement), thus restricting the business to serious home owners and alleviating pressures in the private rental market and generating future property wealth for home owners.
Assquire® delivers superior investment yield to investors via simultaneous sale and 10 year leasing to a home buyer who purchases with a stretched settlement at a pre-agreed price and occupies a home (also as the tenant) whilst they save their full deposit, and then takes a mortgage post-settlement in up to ten years time, if not earlier. Earlier settlement is possible. Assquire investors can also assign their interest in the property, but subject to the rights of the MA home buyer, who has a registrable Buyer’s Security on title.
Unlike a conventional mortgage, the Mortgage Alternative product involves no home buyer debt before settlement in up to ten years time and is best suited to credit worthy customers struggling with the deposit gap caused by upfront costs like mortgage insurance. It is also a great way for parents and grandparents to assist their adult children to start creating their own wealth, through fast tracking their children’s own home ownership lifestyle benefits.
Offering Home Buyers More Home Choices than a Mortgage or Renting
For many years, homebuyers have sought to find the best home loans with the best mortgage rates but have had little choice other than conventional means, like a mortgage through a bank, when it comes to financing a residential property. This in turn has restricted WHERE they could choose to live, and exposed them to often uncomfortable debt levels early in their wealth accumulation journey.
Even with the best home loan rates offered by your bank with your mortgage, a home buyer taking a traditional mortgage is still at the whim of the property markets (and often future interest rate changes), and exiting your mortgage can be difficult if your personal circumstances change. This can be risky, especially if your equity in the residential property you are buying is low.
Consumers are now demanding more mortgage choice and a better way and that’s where we come in. We aren’t an ordinary home loan comparison provider – We are at the forefront of delivering a new method of home purchase and occupation, where unlike under standard mortgage rates, your payments are pre-agreed for up to ten years, there is no debt while your equity in the property is low, there is less downside risk if you need to exit, there is a low up front deposit and a savings plan embedded into your monthly payments and the ability to move in NOW whilst you save your full deposit for a mortgage!
Better yet, in a mortgage comparison on a risk adjusted basis, you enjoy other features that deliver superior home ownership benefits for less risk where you are no longer at the mercy of movements in mortgage rates for up to ten years, plus you don’t have to fund mortgage insurance up front!
Now compare home loans to that! A Mortgage Alternative vs home loan comparison will clearly show a Mortgage Alternative product to be less risk, more convenient, and much more flexible than a mortgage.
Welcome to Mortgage Alternative. Get the benefits of a home ownership lifestyle without having a massive debt around your neck, and enjoy the peace of mind. Why wouldn’t you? If you’re not yet convinced, take the time to explore the posts on our corporate facebook site at https://www.facebook.com/mortgagealternative and speak with your financial adviser and show them those posts. You may need to be patient in these early weeks and months as this is a new business and it will take us some time to get everything prudently in place for you as our first customers and for the investors.
Do you earn over $70,000 pa or do you and your partner collectively earn more than $50,000 each? You could enter into home ownership and enjoy that lifestyle and certainty for as little as a 5% deposit with Mortgage Alternative.
Explore this website for how Mortgage Alternative contracts work and http://assquire.com.au in depth for how investors can use the Assquire® system to sell and lease their investment property for up to ten years to an MA home buyer.
It costs nothing for an MA home buyer to apply and be credit and insurance assessed. By completing an MA Home buyer application on this website, even before you locate a home or we put up an Assquire® property listing in your preferred suburb, you gain an advantage over other MA home buyers who are not yet credit pre-approved, when you subsequently find your preferred home on http://assquire.com.au/property-listings/, and we or our approved product agents match you to an approved Assquire® investor who registers to use our system at http://assquire.com.au/investor-application/.
So try it out and see what value home you might qualify for as an MA buyer, with no debt for up to ten years and no mortgage insurance. You have nothing to lose, but you must earn over $70,000 pa or be a couple with combined incomes over $100,000.
If you are an investor wanting to Assquire® invest for 7% net yield instead of the usual rental net yield of closer to 1.5% to 2.5% pa, and you are willing to give most of the future capital growth to an MA buyer who lives in your home and looks after it as your long term purchaser, go to http://assquire.com.au/investor-application/ to register and seek an Assquire® licence.
Founder – Assquire® and Mortgage Alternative