Buying off-plan with discounts

edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
3 replies 1.4K views
reme-bodreme-bod Forumite
32 Posts
edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
I've recently been looking into buying another property, but don't want to get tangled up in a chain. I've recently found some companies that negotiate deals with property developers and negotiate large discounts (circa 10%) off the off-plan price. I've been told that there is little financial outlay - in fact just the deposit as would be paid in any off plan purchase, and an additional finders fee (typically 1-2 % of purchase price). This means that there are no mortgage payments while the property is being built, and allows enough time to market and sell my own property before completing.

Has anyone had dealings with these companies, and are they legit?

The one's Ive been looking at are:

https://www.hattanandgrand.com
https://www.viceroypark.com
https://www.urbaninvestor.com

Jim

Replies

  • OrchidOrchid Forumite
    54 Posts
    reme-bod - personally, I wouldn't touch any company who provide this service with a barge pole!

    Reason being that the price of similar properties sold is likely to be lower than the prices of properties being offered by these companies; as they would have to put a mark up somewhere to make profit or dare I say, inflate the price a little!

    Just my 2 pennies
    [FONT=Verdana, Arial, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif]Start B[FONT=Verdana, Arial, Helvetica, sans-serif]alance[/FONT]: [FONT=Verdana, Arial, Helvetica, sans-serif]£19[FONT=Verdana, Arial, Helvetica, sans-serif]4,162.57[/FONT] [/FONT][/FONT][/FONT]
    [FONT=Verdana, Arial, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif] * New Monthly Target since May: [FONT=Verdana, Arial, Helvetica, sans-serif]£2,906.29[/FONT][/FONT][/FONT][/FONT][/FONT][/FONT]
    [FONT=Verdana, Arial, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif]Current Balance: [/FONT][/FONT][/FONT][/FONT][/FONT][FONT=Verdana, Arial, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif]£188,511.89[/FONT][/FONT][/FONT][/FONT][/FONT]
  • Orchid wrote:
    reme-bod - personally, I wouldn't touch any company who provide this service with a barge pole!

    Reason being that the price of similar properties sold is likely to be lower than the prices of properties being offered by these companies; as they would have to put a mark up somewhere to make profit or dare I say, inflate the price a little!

    Just my 2 pennies

    Thanks, Orchid.

    That was one of my major concerns, but one or two of them do include RICS valuations on the properties and the discount is from that value. I appreciate that even the valuer can be "encouraged" to manipulate the figures, but they are major housebuilders (Wimpey, Persimmon, etc) and their websites do reflect the pre-discount prices. I'm not looking for a get-rich-quick scheme, just an affordable home!

    One of the companies' MD is often used as a consultant in the Financial Times, which made me think that he would have a lot to lose if he were to be heading a less than scrupulous organisation.

    Jim
  • terrierladyterrierlady Forumite
    1.7K Posts
    Due to large volume of sales the usal discount is between 10-15%, the higher figure on leftover plots
    ie sites coming to an end,
    problem houses ie plot faces onto a brick garage wall .
    Plots with colour schemes already chosen by sales staff as the plot was not sold.
    They are usally given a 14day max to exchange most companies do it in 7 so that why they get the large discount from developers
    at the moment I know of one buying 10 plots off plan in Cardiff Bay area.
    my bark is worse than my bite!!!!!!!!
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