Thursday, March 12, 2009

Mildly interesting

Tenants offered rent-to-buy deal

What is noteworthy is that this chap managed to get such a good discount on a block of flats from Barratt's that even if he doesn't sell them at a a profit, he is still making what appears to be a 5% to 6% return on his investment, also the fact that he accepts prices might go down. Maybe he could have a chat with Greenbay?

Posted by mark wadsworth @ 07:42 AM (1860 views)
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6 thoughts on “Mildly interesting

  • I think I would prefer to rent @ 6k per annum and thus save 14k per annum than watch prices fall at 20k per annum.

    Mr Hekmat Kaveh has done his sums. That’s not including the massive interest on the higher mortgage loan. Get stuffed!

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  • Imagine the senario…
    Someone buys a flat in this block then Mr Kaveh finally goes bankrupt, a housing association steps in and you find a group of drunk chavs

    complete with pitbull blocking your way in. You instruct an estate agent and tell him what you payed for the flat, after lifting him up off the

    floor he tells you what price you will have to accept just to get the hell out of there. Keep renting and saving tenants!

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  • Much too soon to be playing this sort of game..

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  • stillthinking says:

    Isn’t this illegal? I seem to remember there were some articles that if the builder provides the deposit then they are in effect overpricing the true value of the property. This developer has chosen to limit the provided deposit to those who already rent, but even with that provision, the developer is providing cash-back on a mortgage at the same time as deciding the valuation.
    There isn’t much difference between that and this;

    http://edinburghnews.scotsman.com/mortgageandpropertynews/Builder-pays-1537-deposit-to.5008995.jp

    I can see his thinking and it isn’t a bad idea should prices turn, but as commented, he is taking the risk of not selling any, and turning into a rather badly timed BTL venture. Ultimately failing on the fact that house prices are going to utterly collapse beyond belief.

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  • New build 1 beds in Cardiff are worth about £60k depending on usual factors. There are far to many of them around.

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  • Buyer(tenant)bware says:

    Look very carefully at this guys past history – a leopard does not change its spots!

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