Buying on the EasyBuy scheme offered by Crest Nicholson

sidge66

Me and my girlfriend have looked into buying a two bed flat in Worthing, West Sussex from Crest Nicholson at their Kings Quarter development.
We have made three visits to view various plots they currently have on offer and are thinking of putting in an offer for one which is due to be completed in October '08.
We don't have a deposit so would be buying on their EasyBuy scheme, where you get a mortgage for 75% of the property and a loan from Crest Nicholson for the other 25%.
Has anyone else brought from them using this scheme or does have anyone have any opinions as to whether this is a good option for a couple who don't have a deposit and are reluctant to rent as view it as dead money.

Thanks in advance for your repsonses.

lynzpower

my opinion is AVOID this scheme- it is simply not one for money savers!!

Do a search on this forum for 75% and you will see pages of reasons why this is simply ONE BIG SCAM!!

the key is - its not WORTH the 100% that they have "valued it at"

SquatNow

sidge66 wrote: »

Me and my girlfriend have looked into buying a two bed flat in Worthing, West Sussex from Crest Nicholson at their Kings Quarter development.
We have made three visits to view various plots they currently have on offer and are thinking of putting in an offer for one which is due to be completed in October '08.
We don't have a deposit so would be buying on their EasyBuy scheme, where you get a mortgage for 75% of the property and a loan from Crest Nicholson for the other 25%.
Has anyone else brought from them using this scheme or does have anyone have any opinions as to whether this is a good option for a couple who don't have a deposit and are reluctant to rent as view it as dead money.

Thanks in advance for your repsonses.

Renting is generally significanttly less than the interest payment on a mortgage on a similiar proprty.

BUYING IS DEAD MONEY.

Buying a new-build now is financial suicide.

Just walk away and forget about it. Rent somewhere for a few years until the market bottoms out, and save up a big deposit. In a few years prices will be stupendiously lower than they are now... if you save hard you'll probably be able to buy a place outright.

sidge66

Yes I guess your right abot the value or renting as we are looking at a mortgage of £650ish per month. However we thought this may be the best option for a couple of years and go from there in regards to moving on.
I know we wont aquire a large amount of equity from this scheme but thought it may help us get on the ladder.

I havent been able to narrow down the search for '75%' but will try again later on. I know the value of the property may be overvalued but we're planning a cheeky bid a alot lower than its priced and go from there in terms of negotiating.

mewbie_2

sidge66 wrote: »

I know we wont aquire a large amount of equity from this scheme but thought it may help us get on the ladder.

Friend... it is no longer a ladder. No one expects house prices to rise, they expect them to fall. Stay off the 'ladder' if you can, until things stabilise.

SquatNow

sidge66 wrote: »

I know we wont aquire a large amount of equity from this scheme

you get a large amount of equity, trust me... NEGATIVE Equity.

sidge66 wrote: »

but thought it may help us get on the ladder.

[strike]Ladder [/strike] pyramid

sidge66 wrote: »

I know the value of the property may be overvalued but we're planning a cheeky bid a alot lower than its priced and go from there in terms of negotiating.

65% below asking price? Any higher and you're overpaying.

SquatNow

mewbie wrote: »

Friend... it is no longer a [STRIKE]ladder[/STRIKE]. No one expects house prices to rise, they expect them to fall. Stay off the [STRIKE]'ladder' [/STRIKE]if you can, until things stabilise.

PYRAMID!!!!

SouthCoast

These new build shared ownership 1/2 bed flats in Rustington BN16 were completed over a year ago:

http://www.berkeleyhomes.co.uk/index.cfm?articleid=1472

Nobody could afford to buy them last year and they were then let out to LA tenants.

This is another Crest Nicholson development that they are struggling to sell:

http://www.admiralty-quarter.co.uk/

sidge66

Thanks for the tips people. We saw these at £170,000 for two bed flat with ensuite, so would pay £127,500 on the EasyBuy scheme but was going to open with an offer of £155,000, so paying £116,250.I guess the main attraction is there is no deposit and as we were looking to move out within the year thought this may be a good way to go.
Are house prices really going to keep falling away like they have in the past?

SquatNow

sidge66 wrote: »

Are house prices really going to keep falling away like they have in the past?

only for the next couple of years, then the drops should slow down to a trickle for a couple of years before bottoming out and eventually rising again to a level about 50% below current prices.

sidge66

So in short- scrap the idea of buying one of these, get saving and wait for a few years. Alternatively rent, save abit and wait for a few years of the market hits rock bottom.