Hire Purchase? Exploring the Ins and Outs – Lease Calculator
You may require a lease or hire purchase when dealing with real estate, automobile purchases and other such investments. Macarthur Mortgage Finance is one of the best lease calculators in Australia.
What is Lease / Hire Purchase?
In simple words a finance lease is a contract between the owner, (the lender), and the end-user of an asset. This contract states the terms of agreement for use of that asset. When you purchase or sell something on such a contract, it is called a lease or a hire purchase. Monthly payments enable the purchaser to use the asset.
If, eventually, the purchasing party becomes financially strong enough to buy the asset, they can pay a calculated amount based on the ‘rent’ they have been paying and become rightful owners.
Benefits to Both Parties
Because leasing is the quickest way to buy or sell a property, it is a win-win situation for both the buyer and the seller.
As a seller:
- You can earn interest on the contract sum, often at good rates.
- You can eliminate realtor commissions usually due when a property is sold.
- You do not have to maintain your property.
- You can use the property without actually having to pay the full price.
- A portion of the rent can be used by you to buy the property in the future.
- You can buy the property at your convenience when your financial condition is favorable.
- There is faster equity growth in this process.
- After buying the property, you can sell it at a higher price.
As a buyer:
Companies in all parts of Australia are open to lease or hire contracts. You can understand more about the process from our experts who will guide you about the line of credit, interest only investments, principal and interest investments, equipment finance and mortgage brokers and so on using lease calculators. Contact Macarthur Mortgage Finance today and get started on your finance leasing or hiring process.