A Chance for Governments to finally Offer 0-Interest Mortgages
& even for the governments to purchase property for free along the way.
The Property Goal: is for citizens to buy a primary property only once,
which could be sold & then the sellers voucher is ready to purchase another primary property.
Similarly to cash, however...
Eventually, due to the 0-Rated Interest & after the Property Vouchers were inherited away, the property owner and later on their beneficiaries would be free from the tedious chore of earning an excessive living, to pay a mortgage. Meaning only the parents would buy a house, & their children would receive separate vouchers as inheritance, ready to use only for property. In the current secondary banking system, beneficiaries do not always use the cash gains for a primary property. Which often leaves them in further debt, to the point of home equity loans & reversed mortgages. Therefore, those in-debt agers, have nothing to leave their children, aside from a table lamp they picked up at a garage sale.
In the old days of ideally the father said: "You keep this house for your children and your children's children, and you will never be poor." Sad though because the father had 5 children, and they had to sell and split the proceeds, some went to pay off a car loan, others went to pay off tuition, and a few may have actually gone towards principal on their high interest mortgages. The reality is..."When you're feeding a high interest mortgage system, you cannot keep up with the beast, he is always hungry for that high interest again."
My cutsie voucher system, will always have the option for a parent to credit their children with "property-only notes". In this way they can't ever be homeless. Even if the property note "Voucher" is very small.
You see, the priorities of economic consumption at this point does not have any purchasing discipline. It's been selling, "Buy what you want without any thought to towards your future!"
The discipline can be found in having a "for sure" home. Yet, because we are a "democracy", so is the democracy of the consumer-purchasing cycle. So, the required guidance cannot officially be forced on the populace, even though we have so many with, "No roof over their heads", or "No chance to own".
To bring discipline where there is None, it can be found by forcing the inherited meal ticket,
to be "only transferrable towards a property purchase" (*which could also be the same house of course). Then, the un-disciplined and/or person's frauded cannot destroy a countries economy, due to increased policing, foreclosures, property bubble crashes, and just an increase in degenerate persons.
Scenario:
*5 Children inherit a 1,000,000 dollar parental home.
The house value holds the final voucher, minus the final voucher tax of 5%, split between the children, during the sale only. Reducing its final voucher to $960,000
Which becomes, $192,000 each (incl. their portion of the closing fee paid to the buyer) from the million dollar home.
The $192,000 each, is split 50-50, $96,000 in cash & $96,000 as a property voucher.
In this way, the parents and government are all content that the children are provided for.
Only at this time can such a large sum of money of 50%, be sent from a voucher.
They can each either use their new Net Worth, & Voucher to buy their first primary home, or upgrade to another. If they already have a voucher mortgage, they can add-on the new voucher, and hopefully reduce their mortgage to zero.
The final tax is a non-issue, as its replaced by the buyers payment of the seller's fee.
Let's say, a "little rich kid" has a million dollar house, & his parents paid $250,000 without any interest rate via the voucher system. His only concern left, is to pay the property tax, home insurance, his food & utility bills and retire at 45.
The little Rich Kid", decides to downsize several yrs after owning the home.
Note: during this time, he has only been transferred as the new owner, not given any cash.
In this scenario, upon the sale; he gets 50% of the million dollar house in cash, "$480,000" added into his Net Worth, and a huge voucher of $480,000. This split includes, the final voucher tax of $50,000, the sellers payment of $50,000, and the closing fee of $40,000 ($960,000).
He buys a house worth $300,000, pays about $27,000 in cash for seller and closing cost fees,
leaving him with approx. $453,000 in Net Worth, and a property voucher of $180,000. Which is saved in his Voucher Account.
An Ecological Solution Also?
Absolutely, the world would have a chance to offer us cleaner air again, from the reduced pollution. Due to the fact, people would not need to busy the roads, and work more, as they've had to, during the past centuries. The truth here is interest-rated loans cause pollution and higher resource usage.
This would not be a future economic stop, though, as the future children and grandchildren may want to modify the house, which might require a builders mortgage. However, the tedious chore of paying a mortgage each, would finally go away. The persons could use their earnings in other ways, and those with limited earnings would no longer be a drain on the governments worth.
As most people would eventually become home owners without a mortgage held. A different wealth and purpose would elevate the people towards bettering themselves, to entertain furthering their education, attempt artistic endeavours, etc. Whereas before, this habit of bettering oneself, has only been able to occur for the hyper-rich & retirees, at a time too late for many to actually challenge themselves further.
Likewise, the citizens would all be housed, and the government could be proud of the property ownership ratio held by its citizens, bringing a new prosperity to the country on a world-wide scale.
Formation of A Central Bank for Property Ownership
It's a pretty simple system actually.
Ready to be implemented via
my excel spreadsheet. Specifically for use as each citizen's primary home mortgage, with a minimum age of 18. Sellers with a current non-voucher held mortgage cannot qualify, they first have to pay-off their property loan as normal, or sell, then use the proceeds towards their Net Worth to qualify.
Zero-Rated Interest
The Central Bank of each country offers mortgages at Zero interest for the life
of each 20-yr loan, for its own citizens.
There is very little cost to each of these country-specific Central Banks to utilize this system. The costs would be hiring staff to determine Net Worth, then also having facilities to keep track of the current vouchers held, and by whom, and for which property. Lastly, to cover a "few" closing costs for the homeless.
An actual monetary benefit to the government occurs,... from bundled final vouchers, supplied from a 5% final voucher tax, in which the goverment can use to purchase it's own property.
Impoverished Persons Buying Property
When a seller sells a property of a value $50,000 or less; the payment to the seller is given as a voucher just exactly like the normal voucher sales or higher priced properties. After the sale, the seller can use his or her voucher on another property, or save it for later.
However, as the low-income individual will not often have the $1250 - 4999 amount for the down payment, to afford the sellers's fee and closing costs, the government has to cover that upfront expenditure during closing.
Likewise, any person could also donate the amount to help the person purchase sooner.
After which time the monthly mortgage for the impoverished person is quite minimal at only $187-203 dollars per month, for 20 yrs.
The Property Voucher Itself
It's a carry-all voucher that's used just the same as cash, specifically to only: Purchase Property.
The voucher (account) is given to each seller, so, he or she can purchase another home with part or all of its value. A person can use 1-5 vouchers or even more during their lifetime.
The Final Voucher
If one has decided to not purchase property any longer, the voucher is transferred to heir(s) or a non-profit. At this time of the property sale the final amount of the voucher to transfer away to beneficiaries, has a 5% reduction. The 5% "final voucher tax" is not in cash, rather a reduction of the voucher's total. Thusly, the government is then given a small voucher, that the government can later bundle with other final tax vouchers to buy property also. In this way the taxable event does not injure the beneficiaries nor cause a need for extensive title & probate services. There is no rush by the beneficiaries to use the final voucher once received, it can be stored as a savings.
Net Worth: Cash
The buyer finds a house or condo, with the property value amount, based upon Net Worth.
Once the Net Worth has been determined, from savings, and associated market equities; a range of house prices becomes available for the buyer to choose from.
The buyer then pays out up to 75% of their Net Worth in real money, or real money & a former property voucher, to Purchase the property. The 75% of Net Worth includes some down payment, the Seller's fee and Closing Costs. Buyers pay from cash only; or cash & a former voucher.
Previous vouchers are included with the Down Payment number!
However, the requirement of a certain amount of cash still remains, in order to cover the seller's fees and closing costs. So, a hefty 50,000 down payment could be reduced to only $25,000 in cash when there is a voucher with $25,000 or more. Meaning the buyer could keep $25,000 in their normal savings and not spend all of the cash $50,000 on the house.
The voucher is very powerful, and can be used as a constant savings tool.
It can reduce a mortgage to zero, when the voucher is higher than the cost of the property.
& as long as seller's fees & closing fees are covered, many vouchers will act just as a property buying "Note", with no mortgage ever required.
In the event, there's a larger voucher denomination than the property value, the person will receive a smaller voucher during the sale. The smaller voucher can then be kept as ones savings, to bundle later for a higher value property or gift it away to another or a non-profit.
Properties Prices Available to Buyers
I created the system to have a minimum and maximum property price.
Whether, a minimum or maximum price-ranged property,
both offer reduced monthly mortgage amounts due to the 0-rated interest.
Also, more expensive properties than a secondary bank could offer,
can be purchased due to ones Net Worth valuation.
So it's a win situation, for both the buyer & seller as an upgrade process.
Bare in mind, the purchase price holds 75% of one's Net Worth. So, basic home owners ins. has to be held by each home owner.
The buyers pre-determined price range, is provided on the worksheet calculator,
where the small % of the properties value, towards the seller's fee & closing costs is included.
*Used homes only, new builds are not included.
At Each Property Sale: The Seller's Fee & The Closing Fee
A % of the property value, in cash (wire or eft),
goes to the Seller from the Buyer. (approx. 5%*)
& A % of the property value, in cash (wire or eft),
goes to cover closing costs, for real estate agents, title company, etc. (approx. 5%)
If a seller wants more cash upon the sale, it's possible the particular house will not qualify for the buyer.
An additional calculator lookup, with the seller's preferred % fee; would be required for the buyer to proceed. Hopefully, that info could be run via an online chat room, or webpage.
"See if the Seller's % is too high for you!"
& the Seller's % fee would need to be listed with the property listing for "All to See".
During the sale, the Seller receives the cash & a voucher for the remaining 70-95 % of the properties value.
Repeating: If the Seller holds a secondary bank Mortgage on their primary Property:
he or she would "Not" be able to participate in the program.
The Seller has to sell his house to someone who is using a secondary bank mortgage system or paying in cash; in order to pay the secondary bank off.
Then the seller could buy a house with a "Zero-Rated Mortgage" from those proceeds.
All because the received Government Voucher is not transferrable as cash, to the secondary banks.
Mortgage Payments
Simple mortgage payments, are assigned to the buyer, for the life of the loan of
240 months, during the sale.
Savings Opportunity
There are many moments when the vouchers are not paying for property.
During those times, it would necessitate a voucher savings account to be constructed. That option is for others to create as an add-on.
Considerations of Non-Payment
In these situations, the entire voucher that has been paid thus far,
would be given to the non-payer of the mortgage, minus a loss-of-mortgage tax. (tax of 5% from the accrued voucher, in order to limit mortgage failures). Also the house would be sold to a new voucher buyer without any chance of the seller earning a seller fee.
No derogatories would be put on their voucher account, as they already would have been penalized with the loss-of-mortgage tax, along with losing the cash seller fee upon the sale.
Rephrasing, so lawyers don't need to be hired; The persons who lose their home, would lose 5% of their voucher money, which goes to pay the loss-of-mortgage tax..
Also, as the need for a buyer would be quite soon, rather than a sale at leisure,
the non-payer would not receive any cash as a seller fee;
only a slightly reduced voucher due to the loss-of-mortgage tax, for what they had previously paid.
Since it would be a disadvantage for the non-payer of the mortgage,
to lose their seller fee and have a voucher tax; it would be better for them to attempt a house share, and split the mortgage payments with the new house share person.
To bring interest to the new house share person,
the process would be to settle your current voucher into your voucher account;
and then any new money spent into the mortage further, would be split into 2 vouchers,
a voucher for the old non-payer who now house shares,
and a voucher for the new house share person.
Government Freedom of Banking
Each government has full rights to offer Zero-rated Mortgages, regardless their current secondary banking institutions.
The vouchers themselves, are simply "property note accounts per person",
that go with each person no matter the current property chosen. A transferrable note; away from the older style of property notes that were based upon a sole property only.
It's also advised for those secondary banks to reduce their interest rates to 2 % across the board, so there would not be too many property sales into the voucher system all at once.
Bare in mind; Second & Third homes do not qualify, the voucher system is only for each primary home of a citizen. Therefore, for those other non-primary mortgages, one would have to go through a secondary bank as normal.
Finished
This tactic brings economic stability; creating a wealthier populace, and is available for any country in the world to implement.
Furthermore, there's no strain put on a government financially, by offering the 0-rated mortgages, and it also removes inequities such as homelessness while allowing for the chance to raise the level of persons; persons who are classed as a countries citizens.
The Central Banks Property Ownership Worksheet
The Excel spreadsheet does all the work for the keepers of these simple mortgage property deals.
It tells how much the buyer can afford & their price range, & their monthly payments;
then, how much the seller is actually paid in cash & the voucher amount given upon the sale.
I also included a min/middle/max amount that will tell right away if the amount of the property in question is too low in price to qualify or too high in price to qualify.
