29/07/2022
Introducing our second product - AN LIVING Head Start - which enables parents (of would-be first-home buyers) monetise a part of their freehold or 999-year leasehold homes, without having to move or sell their property during the term of the loan, to financially support their child(ren)’s first home purchase and family aspirations.
Rising interest rates and property prices have meant that young first-home buyers here are finding it increasingly harder to find quality spaces that are not only conducive to their lifestyles and aspirations (for example, sufficient room for hybrid working, growing their families etc) but also within their budgets. Worried about overstretching themselves financially, more people are choosing to marry later in life, convinced that they must first be equipped with financial and career stability in order to combat cost-of-living pressures and an uncertain global economy.
While some first-home buyers have parents who would like to help them financially to purchase a larger home that would suit their needs, doing so could compromise the parents’ retirement liquidity. This is due to large sums of cash that are needed to fulfill TDSR and downpayment requirements, which may necessitate liquidation of investments or sale of the parents’ home.
To help these families, AN LIVING provides an interest-free loan in exchange for a share of the future sales proceeds of the parents' home asset and is calculated based on how much wealth they wish to access from their home asset today.
The balance of wealth which they do not access is retained by them and could appreciate over time. With AN LIVING Head Start, parents (over the age of 55 and live in unencumbered freehold or 999-year leasehold homes) are now able to help their children without impacting their liquid assets, having to sell their homes or worry about paying monthly instalments4 and potentially rising interest rates.
AN LIVING Head Start is an alternative home equity financing solution for older borrowers with cashflow concerns as age limits for home equity term loans may require them to pay a large amount of principal plus interest on a monthly basis. Home equity term loans would not make financial sense for older borrowers if the monthly repayments are considerably larger than their monthly retirement incomes.
https://www.youtube.com/watch?v=eFWq0j1uvjI
AN LIVING Head Start enables parents1 (of would-be first-home buyers) to monetise a part of their freehold or 999-year leasehold homes, without having to mov...
