Micro Joint Ventures - The Best Way To Buy A Brand New Home

Micro Joint Ventures (or "Micro JVs") are when a small group of like-minded buyers pool their resources to benefit from the "grouped" buying power. In the context of buying a brand new property, the group would partake in a small property development project. The aim would be for each micro joint venture partner to come out ahead. The project feasibility can be calculated from the start even before agreeing to proceed with the deal, and under the guidance of a property buyers advocate, the group's risk could be reduced significantly. Ideally, if you have family or friends willing to form a micro joint venture with you, then you could venture down this path of buying property wholesale with them. However, if you don't have family or friends in a position to join you in this journey, there are now buyer-matching resources that could match you with other qualified buyers who are looking for something similar to what you want. The key with micro joint ventures is that each member of the group needs to bring an equal amount of resources to the table and can complete the deal. That's why before micro joint ventures start their property search, they should get finance qualified by a mortgage broker as a micro joint venture group to buy the land, and as individuals to construct after subdividing. Being part of Micro Joint Ventures is similar to buying any other new property, except: you get to be in an "infill" location that's closer to amenities that you love without settling for an apartment you get to customize your building design to suit your needs you'd have access to potentially lucrative profits from property development by building from the ground up. You'll still have to qualify for finance as if you're buying a new home. So, you will need a deposit and earn an income (or you could pay with cash). A mortgage broker needs to assess your situation and highlight your options before you can join any micro joint ventures. There may be some excellent home loan rates if you can come up with 20% deposit (plus purchase costs). However, there are also options needing only 10% deposit (plus purchase costs). Furthermore, if you're buying your own home, there may be specialist lenders such as "Keystart" in Australia, who offer deposit requirements of as low as 2%! Speaking to an expert and accredited finance and mortgage broker will quickly reveal all your lending options very quickly. Financial benefits of buying brand new: First home buyers would still qualify for any government grants and/or duties concession for buying new; Duties are only payable on the land, not on the building. This works out much less than duties on an established house; Rents for brand new dwellings are generally higher than older houses; Full depreciation benefits are available for investors, compared to reduced/removed benefits with established investment properties. Coupling these financial benefits of buying a brand new home with the additional equity that's manufactured from developing the right property - you'll find yourself ahead of the pack by getting involved in a properly qualified, and well-orchestrated micro joint venture. Catalyst Developments can help with Micro Joint Ventures by: a) putting you in touch with a mortgage broker; b) matching you to other finance qualified buyers who wish to build brand new in a similar area & budget as you; c) getting the micro joint venture group finance pre-qualified; d) connecting you with a property buyers' advocate; e) introducing you to building consultants. Register for free at http://catalystdevs.com.au/ to be matched to other qualified buyers. Article Source: http://EzineArticles.com/9774528