Buying on the EasyBuy scheme offered by Crest Nicholson

SouthCoast

as we were looking to move out within the year

You will be trapped in the property by negative equity.

lynzpower

Sorry I dont understand why you would want to buy somewhere, then leave in a year! Clearly FTBs you have no idea how stressful it all is and expensive :eek:

My advice is, see which "buyers" are loking to let out in this development, then you will be able to stay for 6 months, or 12 months. Of course you might want to drive them down on price

Youll be able to live in the development ( if that dont put you off new build flat, I dont know what will ) I can say this as I bought & sold a new build flat, and I would never- repeat NEVER buy one again, no matter how glossy the brochure ) without any level of personal financial risk.

sidge66

Sorry I didn't word it quite right, we are looking to move out of our respective parents homes. We would look to stay in the property for at least 4 years, giving us a year to sell up before we need to start paying interest back on the 25% loaned from Crest Nicholson.
But if things work out how Squatnow predicts this will be just in-time for the property market to bottom out, so not so appealing afterall.

SouthCoast

I know of a 2 bed flat not far from BN11 that was sold new in 2003 for £200k.
It has been empty for 2 years and is currently on the market for £180k.

IMO it's true value is around £110k.

SouthCoast

And this is a 2 bed flat in Shoreham.

With thanks to Property-Bee.

History

dateevent05 July 2008

• Price changed: from '£169,950' to '£164,950'

05 June 2008

• Price changed: from '£177,500' to '£169,950'

28 May 2008

• Price changed: from '£179,900' to '£177,500'

15 May 2008

• Price changed: from '£189,950' to '£179,900'

22 March 2008

• Price changed: from '£197,500' to '£189,950'

25 February 2008

• Initial entry found.

wymondham

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.

What have you decided to do? Having read through this thread you have been given some very clear advice.....

sidge66

I really don't know at the moment, I know buying a property is such a big commiment and taking these comments on board I am reconsidering but then again is there ever doing to be a good time to go through with it. I know people will say they are going to keep dropping but then how can you tell they wont pick up again. Its mainly the 25% loan factor which is my major dilemma at the moment. People will probably slate me for not taking the advice on here straight away but we need time to think about it in more depth.

Trollfever

The time to buy is when developers don't have to dream up complicated schemes to try and shift their unsold stock.

Why be a debt slave?

sidge66

Trollfever I guess you may be right but there are 37 properties on this site, they only have 9 left so it can’t be all doom and gloom can it? Or am I just being too naïve and positive about a bad situation. The particular development we are looking at has 9 properties in it, due to be finished in Oct ’08 and they have 3 left.
How can I find out Land Register figures without paying? Can’t currently get on there but I thought you had to pay to see the figures for some reason. A local paper has stated that properties in Worthing have risen by 2.2% in the past year. How I can find out information on previous years in comparison? Also other news suggests London and the South East will be the quicker areas of the nation to return to former levels of pricing by 2012, if we planned to be there five years this should be about the right for the price, would it not?
It may seem like I haven’t taken people’s views or opinions on board, but I have just want to see if there is any possible way this would work out in our favour, in the long term.

chewmylegoff

look, this "renting is dead money" thing is starting to annoy me. what do you think mortgage interest is? do you ever get that back?

regardless of what is going on with house prices i rather suspect that you could rent somewhere for less money than you would be paying out in mortgage interest on this property. can you afford the mortgage repayments?

also, if you have no money for a deposit, how are you going to afford to pay the stamp duty, solicitors fees, mortgage arrangement fees, mortgage survey fees etc.

have you actually got a mortgage agreed in principal? i don't know how it works when you do one of this 75% / 25% schemes. presumably if you are going to take an unsecured loan out for the deposit, they'll just hack the size of the deposit loan off what they're prepared to lend you.

the other thing is that you both currently live with your parents so you have never lived together before. wouldn't it be more sensible to rent together for a while before you take on the massive financial commitment of buying somewhere?

regarding all the news about the market - no-one can predict what will happen, it's all guesswork, so don't think that just because an article now that says that in 2012 prices will be recovering that you will be able to sell this place. in 2012 you could be in £30k of negative equity. who knows. consider the worst case scenario - will you be able to pay back the unsecured loan if you cannot sell? will you be able to pay the mortgage if interest rates double?

if you are determined to buy then your "cheeky" offer is not cheeky enough. you've only knocked off 9% as your opening gambit. try much lower. they can only say no. it doesn't stop you making another offer.