House Deposits

[silver.fox.2008]

Will be looking to buy hoppefully in the next 12months or so depending on the market.

Will be a first time buyer and was curious on other peoples experiences when buying for the first time.

Will be looking to put down around 25-30% deposit. What have been others experiences on deposits and how much did you put down.

Was wondering how much did you save and how long did it take you?

[Goochie]

Not directly related to your question but.......

I was speaking to my father on Saturday who was saying that they (the property developer he works for) have started a new scheme whereby you rent a new house for 12 or 18 months then at the end of that period you can buy the house - using the rent money you paid as deposit.

This way you get a roof over your head AND save up for your deposit at the same time.

I thought it was a good idea.

[NoelWatson]

Goochie said:

Not directly related to your question but.......

I was speaking to my father on Saturday who was saying that they (the property developer he works for) have started a new scheme whereby you rent a new house for 12 or 18 months then at the end of that period you can buy the house - using the rent money you paid as deposit.

This way you get a roof over your head AND save up for your deposit at the same time.

I thought it was a good idea.

What happens if the developer goes bust?

[BoRED S2upid]

30% would be a good figure giving todays lending market and a decent credit rating.

[SplatSpeed]

NoelWatson said:

Goochie said:

Not directly related to your question but.......

I was speaking to my father on Saturday who was saying that they (the property developer he works for) have started a new scheme whereby you rent a new house for 12 or 18 months then at the end of that period you can buy the house - using the rent money you paid as deposit.

This way you get a roof over your head AND save up for your deposit at the same time.

I thought it was a good idea.

What happens if the developer goes bust?

you rented

[silver.fox.2008]

I don't have problem with that scheme as long as the house if priced at a reasonable figure. If its overpriced then its not very good.

Also, with developers, i don't understand how that would work, if they are using your money that you have paid out in rent and giving it back to you and are counting it as a deposit then how are they meeting their mortgage\loan commitments?

[quyen]

silver.fox.2008 said:

I don't have problem with that scheme as long as the house if priced at a reasonable figure. If its overpriced then its not very good.

Also, with developers, i don't understand how that would work, if they are using your money that you have paid out in rent and giving it back to you and are counting it as a deposit then how are they meeting their mortgage\loan commitments?

Your rent = Their Mortgage Payment

The "deposit" = Discount on their over-priced property

[Fidgits]

i put down 10%, so i think 30% would be fine in the current climate.

[Goochie]

SplatSpeed said:

NoelWatson said:

Goochie said:

Not directly related to your question but.......

I was speaking to my father on Saturday who was saying that they (the property developer he works for) have started a new scheme whereby you rent a new house for 12 or 18 months then at the end of that period you can buy the house - using the rent money you paid as deposit.

This way you get a roof over your head AND save up for your deposit at the same time.

I thought it was a good idea.

What happens if the developer goes bust?

you rented

Exactly.

[Goochie]

quyen said:

silver.fox.2008 said:

I don't have problem with that scheme as long as the house if priced at a reasonable figure. If its overpriced then its not very good.

Also, with developers, i don't understand how that would work, if they are using your money that you have paid out in rent and giving it back to you and are counting it as a deposit then how are they meeting their mortgage\loan commitments?

Your rent = Their Mortgage Payment

The "deposit" = Discount on their over-priced property

The developer is unlikely to have a "mortgage payment" in the same way that a buy-to-let investor does.

[NoelWatson]

Goochie said:

SplatSpeed said:

NoelWatson said:

Goochie said:

Not directly related to your question but.......

I was speaking to my father on Saturday who was saying that they (the property developer he works for) have started a new scheme whereby you rent a new house for 12 or 18 months then at the end of that period you can buy the house - using the rent money you paid as deposit.

This way you get a roof over your head AND save up for your deposit at the same time.

I thought it was a good idea.

What happens if the developer goes bust?

you rented

Exactly.

And where has your deposit gone?

[SplatSpeed]

NoelWatson said:

Goochie said:

SplatSpeed said:

NoelWatson said:

Goochie said:

Not directly related to your question but.......

I was speaking to my father on Saturday who was saying that they (the property developer he works for) have started a new scheme whereby you rent a new house for 12 or 18 months then at the end of that period you can buy the house - using the rent money you paid as deposit.

This way you get a roof over your head AND save up for your deposit at the same time.

I thought it was a good idea.

What happens if the developer goes bust?

you rented

Exactly.

And where has your deposit gone?

is there somebody that looks after you?

[NoelWatson]

SplatSpeed said:

NoelWatson said:

Goochie said:

SplatSpeed said:

NoelWatson said:

Goochie said:

Not directly related to your question but.......

I was speaking to my father on Saturday who was saying that they (the property developer he works for) have started a new scheme whereby you rent a new house for 12 or 18 months then at the end of that period you can buy the house - using the rent money you paid as deposit.

This way you get a roof over your head AND save up for your deposit at the same time.

I thought it was a good idea.

What happens if the developer goes bust?

you rented

Exactly.

And where has your deposit gone?

is there somebody that looks after you?

She has a day off today. My point is simply that the ability to put the rent paid towards the deposit is worth about as much as Gordon Brown's future earnings as an after dinner speaker

a). Will the building company be around in 12-18 months?
b). I'm guessing you will be in less of a position to haggle than if you weren't living in the house.


So I would put it on the same level of usefulness as Barratt's 3 year price guarantee

http://www.barratthomes.co.uk/Offers/3YPG-Terms-an...

[Mr POD]

Goochie said:

Not directly related to your question but.......

I was speaking to my father on Saturday who was saying that they (the property developer he works for) have started a new scheme whereby you rent a new house for 12 or 18 months then at the end of that period you can buy the house - using the rent money you paid as deposit.

This way you get a roof over your head AND save up for your deposit at the same time.

I thought it was a good idea.

It's a bloody good sales ploy IMHO.

You pay enough rent to keep his bank manager happy, but then he 'knocks off' the rent paid, to help towards the deposit. The only risk beiong if the building society decides to value it too low ?

Anyway Great Idea. I like it.