Buying an apartment at a discount?

colmil

II was only considering it, I haver done that and decided against usiing this sort of buying.

tmcat

I have bought through Challenor Properties and am happy to say it isn't all bad news. I was in a position that I did not have the 10 - 15% deposit that is required for a buy to let mortgage. Challenors are able to finance some deals by using the discount as the deposit.
I joined by going on the seminar (not because I fealt I needed the 'training weekend' - it is simply an advertising pitch) but because they offered a deal of the second property with no finders fee.
The bottom line here is that I have purchased 2 properties through Challenors with a combined equity of more than £40,000 at a cost to me of just over £10,000. For me that sounded like a good deal. There are pitfalls that I had to consider,however: Using the discount as the deposit means that I have 85% mortgages. This means that it is unlikely that the rent will meet the mortgage payments. In actual fact for my two they don't. I am having to fund them each month with a small amount of cash (that I can afford).
I am not saying jump right into to Challenors. If the special deal that they offered was not there I may not have joined myself. Also be prepared for dissapointment as some deals fall through.
Make your own mind up and investigate the pros and cons yourself. Please don't base your decision on post you read in here...........

clutton_2

look at https://www.singingpig.co.uk - they often discuss proposals like this - and there are some very shrewd investors on there - read Massive 's posts - he is the expert on new build.

slogger

tmcat wrote: »

I have bought through Challenor Properties and am happy to say it isn't all bad news. I was in a position that I did not have the 10 - 15% deposit that is required for a buy to let mortgage. Challenors are able to finance some deals by using the discount as the deposit.
I joined by going on the seminar (not because I fealt I needed the 'training weekend' - it is simply an advertising pitch) but because they offered a deal of the second property with no finders fee.
The bottom line here is that I have purchased 2 properties through Challenors with a combined equity of more than £40,000 at a cost to me of just over £10,000. For me that sounded like a ! !

WARNING CHALLENOR'S HAVE GONE BUST.

l know of one lady who has lost her £10.000 invesment.