Problem: A crisis of confidence.
Banks are nervous. Buyers are scared. Homeowners are concerned. It's not a rosy picture in the housing market. Even the government is struggling to find a workable solution. Unfortunately, there is no "buy" switch that anyone can turn on. We've got to restore confidence to the marketplace by getting people to start taking steps to rebuild their financial confidence and consider home ownership again. Small steps at first that get people moving forward; steps that lead away from pessimism and towards optimism.
Solution: Start with a lease.
End with a purchase.
The solution is deceptively simple. Don't make a purchase up-front. Rather, go with Trio and get an option to buy in one to five years. After all, who is ready right now to commit to a 30-year mortgage? Instead, put yourself in control. Take the first step to find a property you enjoy living in. Then, as you gain certainty over the direction of your life and the health of the market, you will be in a position to act wisely. And decide at that point whether to purchase or not. If you decide to buy, you have a secured price and have built-up equity and credits towards your purchase.
If we’re going to solve this housing crisis,
we’re going to need some new ideas.
There’s short-term financing.
That’s commonly known as renting.
The upside to renting--or paying a monthly fee for the use of a property--is that the payments are lower than a mortgage. A rental agreement or lease is generally for a short period of time, often six months to a year. This provides you with flexibility, but can be unsettling as it is, by agreement, a temporary living situation. You may renew your rental agreement or lease, but a landlord may refuse, raise the monthly fee or even decide to sell to someone else. They are in control. Renting provides no real, long-term benefits to you, just cash flow to an investor looking to sell when the market returns.
And now there’s Trio. The first mid-term financing for the real world.
Since the majority of people do not stay in a home for 30 years, especially when they are starting out, we offer mid-term financing for homes, town homes and condos. A Trio lease agreement can be customized to your individual needs, anywhere from one to five years. That gives you a reasonable timeframe for your life to progress and your need for change to become evident. Unlike a mortgage, there are no closing costs or down payment required. And monthly payments are fixed, predictable and lower than a mortgage payment.
There’s long-term financing. That’s called a 30-year mortgage.
On the other end of the financing spectrum, is a mortgage. Mortgages are usually based on a 30-year term, although 15-year mortgages are also available. Mortgages provide all the benefits and responsibilities of home ownership, from stability and possible appreciation, to liabilities like taxes, maintenance, and buying and selling costs. As well as the possibility of market values declining. And, 30-year mortgages are also expensive. Requiring a large down payment, cash reserves and fees of approximately 3% to get in and 8% to get out.
Whether the market goes up or down, Trio keeps you in control.
And by offering you an option, but not obligation, to buy, Trio puts you in control, instead of subject to the whims of the market. We set a residual purchase price at the beginning of the lease. And give you credits and bonuses towards your down payment and closing costs should you decide to buy. If the market goes up, you win. If the market goes down, you're safe. Now that's the kind of innovative thinking that could solve this housing crisis.
Trio home financing builds certainty in an uncertain market.
Month after month we get a different news report on the housing market: It's up a little. It's flat. It's down again. No wonder people are cautious, confused, or just stuck. For all those problems, Trio is the solution. We give people options: The option to lease from one to five years. The option to buy at a predetermined price down the road. The option to move to another Trio property. Options that keep you secure and give you greater certainty about the future. Best of all, you are in control of your housing future.