Saturday, Sep 27, 2008
Smoke and Mirrors
The Guardian: Want a new house? It's yours for free
"As offers go, it's pretty hard to beat. Buy a newly built home now and you can live in it for free - no mortgage, no council tax and no house insurance. The developer is even offering to pay your gas and electricity bills."
This deal over a year amounts to only a 5% reduction on price and yet is decsribed in these terms by the reporter;
"it looks as though the Persimmon deal has raised the bar again - and this in an industry that has already seen new houses being offered complete with linen on the supplied beds and towels in fitted wardrobes"
Sorry, towels and linen??!! How much does that knock off the price of the house (and you'll be lucky in they're to your taste)?
Only a lunatic would be tempted by the latest offer - but I guess there are still a few of those around...
7 Comments
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1. Craig said...
Wow!
Now the banks can't offer 110% percent mortgates, the developer will cook the books, to the same effect!
I'm sure this should be illegal.
2. Dispassion said...
Wow!
Now the banks can't offer 110% mortgages, the developers will cook the books to the same effect!
This should clearly be illegal.
3. Doghouse said...
No sh!t Sherlock...."One of the problems faced by developers is that no one wants to buy in a market in which prices still have further to drop.".... they might if they dropped their prices 50%, but that would mean developers writing down the value of their landbanks, and how many would go bust if they did this!!??
And who pays your mortgage, council tax etc when you sign up to one of these deals and the company does go bust? No thanks, I'll just wait for sensible prices to return to the market.
4. little professor said...
How ridiculous. We'll be seeing a lot more of these pathetic schemes before they finally get the message and start cutting prices.
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7. Maihem said...
I'd be tempted if I were still considering buying.
Your first year in a new home is a tough one. fitting it out and letting you be worry free while you find all the problems with it (new builds are always faulty) and have to argue to have them fixed. This puts the value of the flat up for the buyer much more than the cost to the seller.