Cala Homes Pay Scheme 80/20

keith85

We are looking now at buying a 2 bedroom flat from Cala Homes. It is on a site that is made up mostly of 5 bedroom townhouses worth £600-800k.

We were looking at buying a house for £180,000 but have now be approached by Cala about a new scheme they are doing for first time buyers:

PAY 80% NOW AND 20% LATER.*

DEFER PAYMENT TO CALA OF 20% FOR UP TO 10 YEARS WITH CALA PAY.*

CALA Pay Scheme 80/20 (this offers a deferred payment on 20% of the property value for up to 10 years)

Reduction of price from £249,950 to £237,000


This would mean us still getting our £180,00 mortgage and putting down 5%, with repayments being the same as what we wanted.

Has anybody had any experience with Cala, or have any views of this scheme.

We have had a nightmare buying a property over the last 9 months which has not fallen through from the vendors side of things and just need somewhere to live now.

Thanks

myhouse_2

keith85 wrote: »

We are looking now at buying a 2 bedroom flat from Cala Homes. It is on a site that is made up mostly of 5 bedroom townhouses worth £600-800k.

I'd be very careful with how you use the word "worth".
I've been to see many Cala show homes and also a few second hand ones. My view is that they seem to be a bit nicer than many of the other builders but they also seem to be outrageously expensive - even allowing for the fact that they supposedly (I haven't checked this) provide more as standard. By the time they're second hand, the difference is harder to see.
You no doubt know how bad the market has been recently - ask them how much they've dropped their prices over the past 2 years. Not at all I'll bet. And if the houses are flying off the shelf, then good on them.

I have nothing against Cala (in fact I liked them the most), but decided that anyone buying from them now faces a very high level of negative equity in the future. Probably more so than cheaper builders.

The above is just my opinion so take it however you like. What is more factual though, is that builders are offering these 80/20 deals in an attempt to prop up high prices. Few can afford these houses otherwise. Unless you get a very good deal from them (>20% off) I personally wouldn't purchase.