Buying flat - Fairview, help needed

Trishu

Dear All,

We are thinking of buying a flat from Fairview development in their 75-25 scheme and the asking price from the builder is 180k.It is a 750 sqft flat and we are wondering how good is this scheme and whether it is really good to buy in this scheme now or continue renting??
Our current rent is 700£ and the rent of simlar kind of flat that we are planning to buy in this area is 850-900£.If we buy the flat on interest only it would be 506£(mortgage of 135k on 4.59%, 3 yrsfixed interest rate) and this makes me to think that i would be saving the rent upto 350£ a month.I will be selling this property after 4-5 yrs as i would be relocating to my home country and not sure what might be the house prices then?
I have listed below a few positive/negatives on this scheme and it would be very helpfull if i could get your advise on this.

Advantages:
1. No deposit for mortgage, buy a house without any deposit.
2. Monthly mortgage(interest only) would be less than rent(considering interest rates will remain low).
3. Bigger flat compared to our current flat(renting).

Disadvatages:
1. 180k in this market situation looks overpriced as similar(2-3 yr old ones)flats in this area are around 165-170k, can i negotiate it down to 160k? Does Fairview negotiate? if yes, how much i shld negotiate?
2. I may go in negative equity and might face difficulty in selling this property after 4-5 years.

I need to make a quick decision and your resposes will be much appreciated.

Thanks

terrierlady

every developer in todays market will negotiate the scheme helps you get on the propery ladder but you pay over the odds for the product new build always carry a higher price tag than 2nd hand

SouthCoast

Does this sound familiar?

**PAY ONLY £344,963 NOW ON OAKDENE'S SHARED EQUITY SCHEME**.

*Pay just 75% now with the remainder being paid in up to 10 years time (at market value) with no rent or interest to pay on the outstanding balance. This is a genuine incentive allowing you to own 100% of your property from day one – this is not a shared ownership scheme. Subject to terms & conditions.

http://www.rightmove.co.uk/property-for-sale/new-homes/property-22726013.html?locationIdentifier=REGION%5E987&includeSSTC=true&_includeSSTC=on&pageNumber=1&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FsearchType%3DSALE%26locationIdentifier%3DREGION%255E987%26radius%3D0.0%26displayPropertyType%3D%26minBedrooms%3D%26maxBedrooms%3D%26minPrice%3D%26maxPrice%3D%26maxDaysSinceAdded%3D%26includeSSTC%3Dtrue%26_includeSSTC%3Don%26sortByPriceDescending%3D%26primaryDisplayPropertyType%3D%26secondaryDisplayPropertyType%3D%26oldDisplayPropertyType%3D%26oldPrimaryDisplayPropertyType%3D%26oldSecondaryDisplayPropertyType%3D%26newHome%3D%26retirement%3D%26auction%3Dfalse%26partBuyPartRent%3Dfalse%26x%3D55%26y%3D15


Oakdene have gone bust.

Trishu

SouthCoast,

Yes this is a similar scheme that you have mentioned above...75-25 for 10 years and no rent on 25%. After 10 years u need to purchase that 25% or sell the house and the share would be 75-25 as per the market value