William Davis Homes
Discussion
Went to view a property today which seemed pretty good. Has anyone had any experience with said company? What are your views?
They are offering an equity deal whereby they pay 25% of the house price which goes towards your deposit. When you sell the property they get there 25% back. If you still own the property in 10 years they will want payment.
They gain because they get shifted of the property and helps cash flow and will get there extra 25% in the future + any gain. Also allows them to be less flexible in negotiating price.
I (the buyer) gains as I dont have to pay deposit and keep all my capital. I also own 100% of the house yet pay 75% (and get the same back) so in effect live in a better house than I would have had.
Whats your thoughts. As they say, if it sounds too good to be true.......!
They are offering an equity deal whereby they pay 25% of the house price which goes towards your deposit. When you sell the property they get there 25% back. If you still own the property in 10 years they will want payment.
They gain because they get shifted of the property and helps cash flow and will get there extra 25% in the future + any gain. Also allows them to be less flexible in negotiating price.
I (the buyer) gains as I dont have to pay deposit and keep all my capital. I also own 100% of the house yet pay 75% (and get the same back) so in effect live in a better house than I would have had.
Whats your thoughts. As they say, if it sounds too good to be true.......!
matt21 said:
They gain because they get shifted of the property and helps cash flow and will get there extra 25% in the future + any gain. Also allows them to be less flexible in negotiating price.
I think this is the problem, you would probably be able to negotiate 25% off of the asking price on any new house at the moment, by doing this the company are selling a house at true 'market value' and they are still retaining 25% of it's value when you come to sell it, so it's a win-win for them. I can see the appeal though if you have a small/no deposit. If you do have the cash, see what sort of straight forward deal they would offer you.
matt21 said:
Jasandjules said:
Do they get back 25% of the sale value as it stands now or 25% of the value in the future?
future value but thats no problem for me as I can only otherwise afford a home for 75% of the asking price.I just think that shared ownership like this isn't a good idea (only because a mate got a bit s**ed over by a developer when he went into a 50% deal, I don't know the ins and outs of it though) and it would be preferable IMHO to buy it with a mate (if that's possible).
matt21 said:
asked questions all seem ok such as they take a hit if property prices go down. not willing to budge on price.
not sure if better off doing this that buying one outright (might get it cheaper??) any thoughts?
If possible, always own the house yourself IMHO. If necessary, I'd say buy it and get a mate/lodger to help pay the bills?not sure if better off doing this that buying one outright (might get it cheaper??) any thoughts?
Jasandjules said:
matt21 said:
asked questions all seem ok such as they take a hit if property prices go down. not willing to budge on price.
not sure if better off doing this that buying one outright (might get it cheaper??) any thoughts?
If possible, always own the house yourself IMHO. If necessary, I'd say buy it and get a mate/lodger to help pay the bills?not sure if better off doing this that buying one outright (might get it cheaper??) any thoughts?
Ah. I know someone who put the deposit on their credit card, though that's not something I would recommend... Maybe a loan? I am not sure that's a great idea either TBH but I don't know how else to do it. I saved for about a year to get the deposit on my first house. I don't suppose your parents could get a bit on their mortgage to cover it?
Jasandjules said:
Ah. I know someone who put the deposit on their credit card, though that's not something I would recommend... Maybe a loan? I am not sure that's a great idea either TBH but I don't know how else to do it. I saved for about a year to get the deposit on my first house. I don't suppose your parents could get a bit on their mortgage to cover it?
yeah i can borrow money just thought if there is a way in to keep capital then that would be beneficialmatt21 said:
Jasandjules said:
Ah. I know someone who put the deposit on their credit card, though that's not something I would recommend... Maybe a loan? I am not sure that's a great idea either TBH but I don't know how else to do it. I saved for about a year to get the deposit on my first house. I don't suppose your parents could get a bit on their mortgage to cover it?
yeah i can borrow money just thought if there is a way in to keep capital then that would be beneficialSure you'll need to raise your own deposit, but you wont have the 25% damocles hovering over you for the next 10 years.
matt21 said:
hornetrider said:
matt21 said:
any thoughts?
Pole and Barge spring to mind.Walk.
- overpriced in the first place and not willing to budge
- they want 25% of future sale price, not 'their stake' as it is now - you have no idea what that will be, yet:
- you would have to start a 10 year endowment type policy now in order to pay off their stake, thus adding to your monthly outgoings
It's just a minefield mate. It's not like there's a shortage of houses on the market if you have funds in place and are ready to go. Why add unnecessary complexity?
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