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New Build Desperate Offer

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http://www.smartnewhomes.com/content/speci...86/details.aspx

No rent, no fees, no messing !

Request a Brochure

No rent, No fees, no messing !

A three bedroom 3 storey home for just £127,500

You pay only 75% of the purchase price

You pay no interest on rent on the remaining 25%

The remaining share is paid back as 25% of the property’s market value, at the time of resale or within 10 years – which ever is sooner

Plot 5 a three bedroom 3 storey home £170,000 - you pay just £127,500*

As well as sounding desperate, this offer shows just how much margin there is in newbuild for them to offer an interest free loan of £42.5K over 10 years with the risk of a nominal loss should the 'market value' in 10 years be below £170K

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http://www.smartnewhomes.com/content/speci...86/details.aspx

No rent, no fees, no messing !

Request a Brochure

No rent, No fees, no messing !

A three bedroom 3 storey home for just £127,500

You pay only 75% of the purchase price

You pay no interest on rent on the remaining 25%

The remaining share is paid back as 25% of the property’s market value, at the time of resale or within 10 years – which ever is sooner

Plot 5 a three bedroom 3 storey home £170,000 - you pay just £127,500*

As well as sounding desperate, this offer shows just how much margin there is in newbuild for them to offer an interest free loan of £42.5K over 10 years with the risk of a nominal loss should the 'market value' in 10 years be below £170K

Its not a loan, its an equity stake of 25% and your forgot the * Terms and Conditions Apply Upon Request.

Lets say in ten years time the property is worth 100k, the Landlord will get 25k back.

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How will you sell while in NE in a couple of years? They are hoping that in 10years time the value will have recovered while still getting rent in the meantime. What a swizz!

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http://www.smartnewhomes.com/content/speci...86/details.aspx

No rent, no fees, no messing !

Request a Brochure

No rent, No fees, no messing !

A three bedroom 3 storey home for just £127,500

You pay only 75% of the purchase price

You pay no interest on rent on the remaining 25%

The remaining share is paid back as 25% of the property’s market value, at the time of resale or within 10 years – which ever is sooner

Plot 5 a three bedroom 3 storey home £170,000 - you pay just £127,500*

As well as sounding desperate, this offer shows just how much margin there is in newbuild for them to offer an interest free loan of £42.5K over 10 years with the risk of a nominal loss should the 'market value' in 10 years be below £170K

I've got a better idea. How about

Plot 5 a three bedroom 3 storey home £127,500

without the bullsh!t.

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How will you sell while in NE in a couple of years? They are hoping that in 10years time the value will have recovered while still getting rent in the meantime. What a swizz!

Nope.

No rent.

You buy 75%.

Between now and ten years time (your choice) you buy off the other 25% at

the then market value, whatever that may be.

Interesting to see what a mortgage broker will lend on such a venture.

100% of the 75% ??

I doubt it.

I reckon that the mortgage broker will lend 75% of the 75%, as the 25% unpaid part

is not genuine equity and the overall value could easily drop 20% or more.

Can't see that it will help anyone afford the property.

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I reckon that the mortgage broker will lend 75% of the 75%, as the 25% unpaid part

is not genuine equity

Indeed. It's not equity at all. Somebody else owns it. It's debt. 75% of 75% is 56%.

In fact, I think there's a good argument for restricting the mortgage to 50% of the 170k. Because what you're really getting is a 25% mortgage from a third party.

So bank will lend 75% of 170k. But 25% is lent by builder, so bank only lends remaining 50%.

Can't see that it will help anyone afford the property.

Can you really not see that having to raise only 127k is easier than having to raise 170k? Really?

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http://www.smartnewhomes.com/content/speci...86/details.aspx

Plot 5 a three bedroom 3 storey home £170,000 - you pay just £127,500*

So the bottom line they can't find a SUCKER who will pay the asking price of 170K, so trying to offload it to another SUCKER under a different disguise Shared/Part ownership . Best bet wait till they are auctioned off under REPOSESSIONS then you will get it for its real value probably less than 127K and you get 100% for that price not 75%. Developers are not charities its like its the last roll of the dice before they go under.

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Can you really not see that having to raise only 127k is easier than having to raise 170k? Really?

I understand your point; but my meaning was that most don't have that kind of deposit,

and unless they could borrow the whole 100% (of the 75%), the scheme doesn't actually

help them.

It doesn't assist people who have little deposit.

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A load of massive new build blocks of flats are being built where I live in greater London and there were plans for more. I've seen some similar complicated types of offers to try and sell them.

Some were ridiculously expensive, I remember seeking a 200K advert just for a studio. To put this in context two bedroom terrace houses in this area were going for around 250K. (they haven't started dropping yet)

I suspect they are not going to sell :P

It will be interesting to see just how much they eventually fall.

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Im currently working on a new build site. The cheapest 2 bed 'executive apartments' were originallly up for £152k. I've just had a look on rightmove and they are now around £125k. This is one of the big four builders.

2008 - Studio flat in Brixton = £210,000.

http://www.rightmove.co.uk/viewdetails-187...=4&tr_t=buy

2013 - The same studio flat in Brixton = £80,000.

I think I'll wait. <_<

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http://www.smartnewhomes.com/content/speci...86/details.aspx

No rent, no fees, no messing !

Request a Brochure

No rent, No fees, no messing !

A three bedroom 3 storey home for just £127,500

You pay only 75% of the purchase price

You pay no interest on rent on the remaining 25%

The remaining share is paid back as 25% of the property’s market value, at the time of resale or within 10 years – which ever is sooner

Plot 5 a three bedroom 3 storey home £170,000 - you pay just £127,500*

As well as sounding desperate, this offer shows just how much margin there is in newbuild for them to offer an interest free loan of £42.5K over 10 years with the risk of a nominal loss should the 'market value' in 10 years be below £170K

....IMO go in and offer full price £120,000 with all the add ins and see the reaction ..they may bite ...builders need cash flow... <_<

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  • 293 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
      • up 2.5%
      • up 5%



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