As I am sure you know now is a great time to be looking for some new build deals from developers for the following reasons:
1) It is coming towards the year end for many national builders who need to hit their targets for the city reports to their shareholders.
2) Sales have been very poor for many builders in the last few months
3) There are site all over the UK with standing stock (cost and profit tied up for the builder)
4) Developers are motivated sellers who will give you good discounts as long as you can move quickly.
So here is my strategy
I am interested in buying houses, as I think at the moment you get much better value for money than flats. I am looking for developments with standing stock so that I can negotiate 15% or more discount. It is important to make sure the % discount that you are being offered is genuine so I check that the developer can prove that similar properties on the site have been sold for the full list price (before the discount). It is worth bearing in mind that most new build do not have carpets, lightfittings, windowblinds etc so this is either something you have to put in or may be able to get included as part of the deal. This is often worth a few %.
It is sometimes difficult to get the rent to stack up, so I am looking for houses where I could get the valuation based on a multilet. This means that the house layout has to be correct and the location need to be right to justify to the surveyor that a multilet is possible. As long as we can satisfy these conditions it is possable to buy with no deposit as follows:
1) Find the property and negotiate a discount of 15% or more
2) Arrnage a Re-mortgage with Mortgage Express based on a multilet
3) Buy with bridging and same day re-mortgage. (using our power team)
4) All you pay is the purchase costs of survey, legals, bridging and finders fee (If you did not find it yourself) plus remember you may need to pay for carpets, furniture etc.
You may think that you do not want to have to manage a multilet and remember that most letting agents will not do them. However, just because you had it valued as a multilet to make the mortgage figures work it does not mean that you need to rent it out as a multilet. It may just wash it’s face on a single AST contract.
Why not see if there are any developemnts near where you live where this strategy could be applied.