What is Homesafe?
Many Australians spend most of their working lives paying off their family homes, often finding themselves asset-rich but cash-poor. They may wish to access the wealth locked in their homes without incurring debt or taking out loans. This is where Homesafe can help.
If eligible[1], you receive a lump sum cash payment upfront in exchange for selling Homesafe an agreed share of the future sale proceeds of your home. Homesafe is then entitled to the agreed percentage of the future sale proceeds.
You remain the owner on title and retain the right to 100% use of your home for as long as you wish or until you die. You maintain complete control over your home, and the percentage of the sale proceeds sold to Homesafe can never increase beyond the agreed share.
Example: Judy is a widower who lives alone in a large house in Essendon. As she is retired, she has no source of income other than her pension and struggles to pay the council rates and get the leaking gutters fixed. In order to resolve her asset-rich-cash-poor situation, Judy sells 11% of her home to Homesafe in exchange for $140,000. She puts the money into an interest-bearing account, which allows her discretionary spending access. She now does not have to worry about the upcoming council rates bill and can finally get those gutters fixed once and for all. All three of her children are well-off and have well-paying jobs, so Judy is not overly concerned about cutting their inheritance a little.
Who is eligible for Homesafe?
Homeowners aged 60 and above, where the property is the principal place of residence for at least one homeowner at the time of exchange of contracts.
The land value of the property is 60% or greater of the total market value of the home, as determined by an independent Homesafe valuer.
Homeowners with no debt on their title or where all existing mortgages can be discharged before or at the time Homesafe contracts with homeowners.
The property is the principal place of residence for at least one homeowner at the time of exchange of contracts. Please contact us to arrange an appointment with our property lawyer if you have any questions utilising our free initial appointment.
[1] Given the nature of the Homesafe transaction, terms, conditions, and additional eligibility criteria must be met before Homesafe can transact with customers.