Jump to content
House Price Crash Forum
Sign in to follow this  
dellboy

Property Advert With Decent Financial Caveat!

Recommended Posts

I bumped into this advert from Miller Homes and RightMove:

Buy Part Advert

You buy a Miller home costing £150,000. You raise a first mortgage for £112,500 (75%) from your bank or building society. We lend you the remaining £37,500 (25%) for up to ten years through . You repay 25% of the value of your home when you sell or transfer it.

If you decide to sell the property:-

After 8 years and the value of your home has increased to £160,000, the amount due under your loan would be £40,000; or

After 2 years and the value of your home has fallen to £140,000, the amount due under your loan would be £35,000 (remember house prices can go up or down).

So Miller Homes will take a hit of 25% of the drop in value. It's a good idea, but not nearly enough to make me even begin to believe that they might not be overrpricing the properties. If they would reduce the amount owing by the full value of the losses then I'd be a little more trusting.

Share this post


Link to post
Share on other sites
I bumped into this advert from Miller Homes and RightMove:

Buy Part Advert

So Miller Homes will take a hit of 25% of the drop in value. It's a good idea, but not nearly enough to make me even begin to believe that they might not be overrpricing the properties. If they would reduce the amount owing by the full value of the losses then I'd be a little more trusting.

Maybe it's a little step on the road to honesty. Honesty after the present crash could well be a future seller's USP.

Edited by 1929crash

Share this post


Link to post
Share on other sites

So they are trying to suck people in to bet on a falling market to shift stock? Very few will be "raising" anything but home baked bread for a while, and the type of house they build will be at auction for 50k soon, so all in all another pile of nonsense from a VI who failed to plan for the bad times.

Share this post


Link to post
Share on other sites

So basically, they've wiped 25% off the price of their crappy new builds........ with the caveat to still come after you for the 25% they wiped off anytime between now and 10 years.

Shrewd move. <_<

Share this post


Link to post
Share on other sites

But if you wanted to pay off the remainder, who values it? Ah.. thought so.

If I could buy a 5% stake, I might be interested.

Share this post


Link to post
Share on other sites
Is this 'loan' interest free?

Yes. "0% typical APR".

I'm sure that they are expecting to bag a few of these houses (or portions of the proceeds) when the 10 years are up and the "owners" still don't have the money to pay them back. I wonder what the APR will be then?

Share this post


Link to post
Share on other sites
Miller Homes

10 years ago Millers were the biggest private construction group in Britain.

I worked for them in the eighties when the interest rate went through the roof.

Actually as a company they were pretty decent to their staff, keeping them employed for far longer than non private construction companies.

I dont know much about them now though.

Share this post


Link to post
Share on other sites

I've posted elsewhere that I fell for a very similar "offer" back in the 1990's hpc.

Don't do it!

What you are taking on is a debt that you know must be repaid at some point in the future - regardless of what your situation is at that point.

It will hang over you like a Sword of Damocles! At least with a mortgage you know that you are paying it off.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 395 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.