Liz and Mike Newstead saved for years to raise a $10,000 deposit for a home loan. "It was a catch 22. Every time you saved enough deposit the prices of property would go up again," Mr Newstead said. "It's very heartbreaking. The dream home was going further and further away," Mrs Newstead said.
"All I wanted in life was just to own my own home to give my children something for the future."
When the Newsteads' eldest daughter was struck with Leukemia, they spent their deposit on her treatment.Mr Newstead had to quit his job as a traveling salesman and their dreams of owning their own home were dashed.
As a self-employed plumber, Mr Tippler was repeatedly turned down for a loan by banks."Over the years we would have gone to over 10 of them for sure. They just won't even look at you, won't give you a chance," he said.
Rick Otton is the founder of We Buy Houses, a unique organisation helping families break through the financial barriers to home ownership. Mr Otton says he will give almost anyone a loan and find them a house.
"A lot of people who are self-employed, or they're new Australians, or don't have the deposit requirements, or don't fit within the bank guidelines can buy homes through We Buy Houses," he said.
"We can help you buy a house if you've got a minimum deposit of $10,000."
If you qualify for the first home owners' grant - a $7,000 government rebate - you only need to save $3,000.
"They don't have to go through the hoops that they have to go through with the banking system,"
Mr Otton said. But there is a catch - Mr Otton's organisation charges two to three per cent more than a regular bank loan.
"We are a stepping stone that allows people to buy their own home and after a year or so refinance into the standard banking system," he said.
For Mr Newstead, the higher interest rate was not a concern, as it helped him get his foot in the door of the housing market.
"We didn't mind paying the higher interest rate because it was the only way that we would actually be able to buy a house now and not have to wait for another 20 years to try and save the deposit," Mr Newstead said.
Last February the Newsteads bought a four-bedroom home from Mr Otton and they refinanced at a lower interest rate with a bank earlier this year.
"I love the fact that we're paying off our own home rather than spending the rest of our life renting, paying dead money," Mrs Newstead said. In April this year Catherine and John Tippler found a four-bedroom fibro home that needed renovating for $168,000.
"To buy a house worth $160,000, to go to a normal lender you need 20 per cent deposit, which is $32,000, compared to our $5,000 that we needed to go through with We Buy Houses," Mr Tippler said.
We Buy Houses has helped almost 40 Australian families in the past three years and some 300 families in the United States, where they have been in business for almost 10 years.
"We negotiate hard to buy houses at a discount and then we just find people - of which there's a whole market share of people - who are unable to qualify for homes tomorrow and we make our houses available to those people," Mr Otton said. Now these battlers are forging new frontiers.
"We bought it for $161,000 and it's worth between $200,000 and $250,000," Mrs Tippler said. So if you're one of thousands of families snubbed or rejected by the banks because you don't have a huge deposit or credit history, We Buy Houses might just be the solution you need.
"Now the banks are chasing us, saying 'would you like a credit card?'" Mr Newstead said. "So it's just really different to be treated differently by a bank when before you just couldn't even get them to give you a free rubber stamp, so it's a good feeling."
As a self-employed plumber, Mr Tippler was repeatedly turned down for a loan by banks."Over the years we would have gone to over 10 of them for sure. They just won't even look at you, won't give you a chance," he said.
Rick Otton is the founder of We Buy Houses, a unique organisation helping families break through the financial barriers to home ownership. Mr Otton says he will give almost anyone a loan and find them a house.
"A lot of people who are self-employed, or they're new Australians, or don't have the deposit requirements, or don't fit within the bank guidelines can buy homes through We Buy Houses," he said.
"We can help you buy a house if you've got a minimum deposit of $10,000."
If you qualify for the first home owners' grant - a $7,000 government rebate - you only need to save $3,000.
"They don't have to go through the hoops that they have to go through with the banking system," Mr Otton said. But there is a catch - Mr Otton's organisation charges two to three per cent more than a regular bank loan.
"We are a stepping stone that allows people to buy their own home and after a year or so refinance into the standard banking system," he said.
For Mr Newstead, the higher interest rate was not a concern, as it helped him get his foot in the door of the housing market.
"We didn't mind paying the higher interest rate because it was the only way that we would actually be able to buy a house now and not have to wait for another 20 years to try and save the deposit," Mr Newstead said.
Last February the Newsteads bought a four-bedroom home from Mr Otton and they refinanced at a lower interest rate with a bank earlier this year.
"I love the fact that we're paying off our own home rather than spending the rest of our life renting, paying dead money," Mrs Newstead said. In April this year Catherine and John Tippler found a four-bedroom fibro home that needed renovating for $168,000.
"To buy a house worth $160,000, to go to a normal lender you need 20 per cent deposit, which is $32,000, compared to our $5,000 that we needed to go through with We Buy Houses," Mr Tippler said.
We Buy Houses has helped almost 40 Australian families in the past three years and some 300 families in the United States, where they have been in business for almost 10 years.
"We negotiate hard to buy houses at a discount and then we just find people - of which there's a whole market share of people - who are unable to qualify for homes tomorrow and we make our houses available to those people," Mr Otton said. Now these battlers are forging new frontiers.
"We bought it for $161,000 and it's worth between $200,000 and $250,000," Mrs Tippler said. So if you're one of thousands of families snubbed or rejected by the banks because you don't have a huge deposit or credit history, We Buy Houses might just be the solution you need.
"Now the banks are chasing us, saying 'would you like a credit card?'" Mr Newstead said. "So it's just really different to be treated differently by a bank when before you just couldn't even get them to give you a free rubber stamp, so it's a good feeling."
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