Buy a house for £2,000???

Running_Horse

Obviously not, but has anyone come across this before?

http://www.rightmove.co.uk/property-for-sale/property-10911714.html?locationIdentifier=REGION%5E61520&sortByPriceDescending=false&pageNumber=1&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DREGION%255E61520%26sortByPriceDescending%3Dfalse

Cleaver

It's a scam.

I haven't read it through, I know nothing about it, I don't know who is benhind it and I've never seen it before. But I'm still pretty sure it's a scam.

PasturesNew

They can't sell it at the price they want. They are looking for somebody who wants to buy, but can't quite afford it just yet.

So they hook somebody in to rent it for now .... with a future date to buy it at, in this case you rent it for 3 years then buy it.

They bought that house in December for £78k
http://www.houseprices.co.uk/e.php?q=45+Barmston+Way%2C+Washington%2C+NE38+8DA

You buy the house in 3 years' time for £90k. In the meantime they overcharge you for the rent to build up the required deposit.

Seen it before, never seen it spelt out with the maths in an advert.

Cleaver

It's a scam then?

1 point to Cleaver. Hell yes.

Swipe

The area is a crap hole as well, right by the Nissan factory

Cleaver

Swipe wrote: »

The area is a crap hole as well, right by the Nissan factory

Or a regeneration area with tremendous employment networks.

If you're an estate agent.

silvercar

Love this bit:

"Price growth and rent deposit payments provide your deposit.

The purchase price is fixed at the outset. You gain from any price growth! "

Davesnave

Swipe wrote: »

The area is a crap hole as well, right by the Nissan factory

Now't wrong wi a Nissan, bonny lad!

And it does say: 'Quite residential area.'

If they spelled it right, they could be in breach of the Estate Agents' Act.

mizzbiz

45 Barmston Way,
Washington,
Tyne And Wear,
NE38 8DA £78,000
Semi-Detached
Freehold
Not New Build 10-Dec-2008
Map (NE38 8DA)
I worked in Washington for two years. Its a god awful place and £78k is too much for it, never mind £90k.

The only thing I can think is that they've bought it as a repo and are scamming someone into a very nasty, long-term contract. It also doesn't specify at what point the freehold would be transferred to you, hence if you miss a payment or two, they can take it right off you without any comeback, as it is their house.

Very dodgy. I've seen a lot of this type of thing around the north east in the last year or so, although they were mainly BTL offers (without the 'buy'). You basically paud them £5k and then paid the mortgage on it for an undeterminable time. I'm sure it's scam. Maybe it's the new sub-prime house buying!

mizzbiz

Just saw this bit too

Move in, and buy later - or walk away! You do not have to buy if you change your mind.
Of course you're going to walk away after the three years when you realise it's back to it's 2003 price of....

45 Barmston Way,
Washington,
Tyne And Wear,
NE38 8DA £42,000
Semi-Detached
Freehold
Not New Build 09-May-2003
Map (NE38 8DA)
However, it doesn't mention getting all that deposit back, execpt to say that the offer is subject to terms and conditions! So the rent over that three years is £20k, and they still have a house. Knock 20k off that £78k, and you have £58k. Do the same thing again afetr three years to another unsuspecting client, and over the years, you're quids in.

Genius money spinner. How long before this gets into the news, I wonder.

itsallagame_2

I remember houses down the Falls Road being £2000