minimize losses

spezial

I want to buy a new-built house for 200k. I have 140k in savings. Is there a way to manage to pay pay a deposit for the home and invest the rest savings, so that I will repay the interest only for 10 years? Or any other way so that I will minimize my losses?

Elfbert

What losses are you expecting to make?? I can't imagine many investments will be as stable as house prices whilst giving the same sort of returns. assuming you buy wisely. And a new build won't be the wisest thing to do.

spezial

why a new build is not the wisest?
help to buy schemes are only offered in new builds
plus won't a new build be better than an old flat?
it will have less stuff to repair and will retain its value in case I want to sell it in 20 years let's say

10pence

spezial wrote: »

I want to buy a new-built house for 200k. I have 140k in savings. Is there a way to manage to pay pay a deposit for the home and invest the rest savings, so that I will repay the interest only for 10 years? Or any other way so that I will minimize my losses?

You have your money back? Guess you won't be needing that council flat or the tax credits...


By losses do you mean pay less interest on the mortgage?

Elfbert

Because Newbuilds have a premium price for being all shiny and new and never lived in. Which they then lose as soon as you do live in it. And it can take a while to get back - in some areas many years, if bought at a peak.

comeandgo

But not all new houses loose value, we bought a new house being built in the first phase, phase two houses were being sold at 15% more than ours and phase three at 20% more. I think the people who bought in phase three did buy too expensive but very few of the houses where I live come on the market. The one and only one for sale in the past 5 years is priced for sale at 40k over its purchase price of 7 years ago so we are all waiting to see if it does get sold.

ViolaLass

If you think you'll make a loss, why are you buying that house?


I don't understand the premise of the question.

amnblog

You can put, say £50,00 in deposit and borrow £150,000, putting £90,000 on deposit offsetting against the mortgage (so that you only pay interest on £60,00).

Interest only may be possible with some lenders to some level.

spezial

let's say I pay a minimum deposit, 10k with the help to buy scheme
and I get the 20% gov loan without interest for 5 years (40k)
and the rest as a mortgage (150k)

Is it possible to have my 130k somewhere invested, so that the gains from them will be enough or even more than the interest of the mortgage? So that:
- I will retain my capital though out the mortgage, let's say 10 years
- I will pay the interest rates for 10 years from the interest gains of my capital
- I will increase slightly my capital as the interest gains of my capital will be more than the 3% which is the mortgage interest rate
and by saving 1k per month, I will be able to repay the mortgage in 10 years from my savings

or is there any other way?

getmore4less

spezial wrote: »

why a new build is not the wisest?
help to buy schemes are only offered in new builds
plus won't a new build be better than an old flat?
it will have less stuff to repair and will retain its value in case I want to sell it in 20 years let's say

New are like cars the new premium is lost the day you buy it.

Look for first sale in the block.

spezial

getmore4less wrote: »

New are like cars the new premium is lost the day you buy it.

Look for first sale in the block.

what you mean first sale in the block?