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Desperation, Perchance?

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Nottingham Evening Post property guide this week

"Don't miss out on this fantastic opportunity with the KingsOak Dreamstart Scheme"

Simply reserve this weekend and;

  • You pay only 75% of the purchase price
  • You pay no interest or rent on the outstanding 25%
  • The deferred amount is payed back as 25% of the property's open market value at any time up to resale or ten years, whichever is sooner
  • Your home is 100% yours from day one - this is not shared ownership

Why would such a scheme be offered, I wonder?

Also interesting to note that the property guide is twice the thickness it was this time last year.

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Don't touch it even with TTRTR's bargepole.................they are effectively lending 25% of the property's value interest free for 10 years..........This is equivalent to a 15% discount off the asking price but is unattractive compared to cashback type deals as it does little to ease the buyer's immediate cashflow.

Cashback deals typically give you 10% of the property's value back as a lump sum if you pay the full (over-inflated) asking price...................

On new build hotel style flats the above are all bad deals as such properties are 50% overvalued to start with............and i don't think such deals will be available on conventional properties.

Edited by Michael

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I have seen this in my area too.

The creativity being used to support a housing market that is clearly straining under the weight of debt and unaffordability is reaching new levels.

Has anyone noticed how these schemes to support the housing market are focusing on 25%. Northern Rocks new 125% of the value mortgage is another example.

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
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      • up 5%

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