Radical home finance plan to slash costs
The cost of buying a home could be slashed by up to a third by a controversial new scheme that will allow financial institutions to take a stake in the property.
Tuesday, July 1st 2003, 3:20AM
by The Landlord
Wizard, Australia's largest non-bank lender (also present in NZ Market. ed), hopes to launch an "equity finance" loan within a year, and banks may follow...Under the proposal, homebuyers would need only to pay 70 per cent of the usual deposit and loan repayments. But Mr Turnbull's investment bank, Turnbull & Partners, would manage a fund that would be the "silent partner" in the home - and would take about 60 per cent of any capital gain when the property was sold. Wizard would package the loan.
The homebuyer would still "own" the property and retain decision-making powers, such as when to sell.
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