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					                            Personal Property Partner

                                                                   Issue Date 24/07/06

              Home Seekers Brochure- Instalment Sales




Nexfer provides people with the opportunity to purchase their own home, who
otherwise may not have had that opportunity.



Nexfer provides vendor finance so that you can own your own home. A deposit
will be required when purchasing the property.

The 5 steps for easy qualifying are:
 Calling and providing your details
 Rental References may be checked
 Credit report may be requested (No need to stress if there are minor credit
   issues!)
 Wait for approval – takes only a few days

Then all you will need to do is choose your home.


When you call,   Nexfer will ask for the type of property you will be interested
and can also assist you in looking for your property. Otherwise, you can find your
own home and call   Nexfer to arrange the rest.         Read on for frequently asked
questions.



     GOOD LUCK AND ALL THE BEST TO GETTING YOUR OWN HOME!!!!!
                           Personal Property Partner



                                 Basic Concept

The basic concept idea is that an investor, who can obtain a loan through the
bank, will purchase the property for you. As you are paying your weekly rent, you
are actually paying off your home. This is commonly called Vendor-Finance.

The investor obviously will like to pay for expenses of purchasing the property
and also make a profit. This is then passed on to the purchaser.

As a guide:
The property value can be increased higher than what the investor pays for the
property and
The interest charged can be higher than what the investor pays.
These values are determined by the market at the time.


                     Frequently Asked Questions


Below are the most frequently asked questions.



Question 1 - What is vendor financing ?


Answer:   Nexfer can offer 30-35 year payments where we hold the title to the
property. You get to live in it as if it’s your own, regardless, during these 30-35
years. Every 2 to 5 years (depending on your contract), your fixed payments are
adjusted to match the interest changes by major banks. By paying your weekly
payments, you are paying off the property.
                           Personal Property Partner




Question 2 – What does easy qualifying mean?

Answer: Easy qualifying means that you do not have to jump though the hoops like
a Bank. All we require is a basic application be completed and mailed or faxed to
us. There is NO COST to you.




Question 3 - Our Credit is not good. What do you look for on the application?

Answer: As long as there is not a history of not making repayments this should
be ok. We are more interested in ensuring that you pay your rent on time.




Question 4 – What is the process once I’ve been approved?

Answer: The process once you have approved is listed below:

1. Search for your property

2. Once you have found your property, you will need to provide Nexfer with:

       a) $1,000 for the contracts to be written (non refundable).
       b) Upfront Initial Deposit. This can range from $1,000 - $7,000 and is
          dependant on the property value.
3. The property will then be purchased by the investor on your behalf.
4. Five weeks after this, you will then be asked to see your solicitor, sign the
   contract and pay the remainder of your deposit. This amount can also range
   from $2,000 to $6,000 and is also dependent on the house value.
5. You get to move into your new home! This can take up to 8 weeks.
                           Personal Property Partner




Question 5 – How much money will I need upfront?

Answer: The costs involved are once you have selected your property are:

     $1,000 deposit for the contracts to be drawn up (non refundable)
     Your solicitor fees – estimated $600 depending on your solicitor
     Deposit for the house. This is higher for more expensive properties.

Note: Once a deposit has been place on a property on your behalf, the money is
non-refundable if you change your mind.



Question 6 - I'm not sure how this works. Do I own the home?

Answer: You have legal rights to possession and the right to purchase the
property. Basically we exchange contracts but do not settle for 35 - 45 years or,
more commonly, until you refinance and pay out the contract. You can live in the
property and care for it as if it is your own.



Question 7 - How do I protect my ownership position?

Answer: You can place a caveat on the title deed. It clouds the title preventing
the investor from selling or refinancing the property without your express
written permission. This is so all parties remain to the written contract.




Question 8 - Should we use a solicitor?

Answer: We insist on you seeing a solicitor. It is important to consult a solicitor
or conveyancer for explanation of the contract (which forms part of a contract
for sale of land) to ensure that it represents the agreement reached with the
vendor (seller) of the house, to have the title and features of the house
explained and to have the instalment sales provisions explained.
                            Personal Property Partner


Question 9 - Can I sell the house?

Answer: Yes. However, remember that in all likelihood it would be a couple of
years until you build up enough equity to qualify for a new loan. The property is
sold to you at a higher value than the current market rate.




Question 10 - Can I refinance my loan?

Answer: Yes. You may use any lender to refinance the loan. However, remember
that in all likelihood it would be at least a couple of years until you build up enough
equity to qualify for a new loan.




Question 11 - Do I need Householders insurance?

Answer: We organise householders insurance for replacement value of the
building, fixtures and fittings. We currently have Elders insurance underwrite the
policies for this type of transaction. The cost of insurance is passed on to you.
We also arrange for public liability of $20,000,000.




Question 12 - Who pays for the rates and insurance?

Answer As it is your new home, you will be paying the rates and insurance. We
give you an option pay an additional $40 - $45 per week to cover these out goings
when they come in. This is a free service we provide to ensure that the rates are
being paid.
                           Personal Property Partner


Question 13 - The contract states that I have to get the vendors permission to
do alterations etc to the house.

Answer: Yes. This is due to the fact that the banks expect any structural
changes to go through the property authorities.



Question 14 - How do I know that you are going to make the underlying loan
payment?

Answer: All Payments go directly into our management company's trust account -
Nexfer Pty. Ltd.    The company is under contract to act as the fiduciary agent.
They pay all the underlying loans prior to distribution of any monies.



If you have any other questions, please don’t hesitate to ask.

Christina Jamieson
0431 833 053
Christina@nexfer.com.au

				
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