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Own a luxury new home build property for less than £43,000 – why is it so cheap?

Own a luxury new home build property for less than £43,000 - why is it so cheap? 1

A new-build property for sale in Luton has been listed on Zoopla for just £42,875.Listed by Taylors Estate Agent in Leagrave, the gorgeous property is in a prime location, with a choice of two rail stations close by allowing you easy and quick access into Central London in less than 35 minutes.Set in a grand, classical cream building, the property oozes class and grandeur. The one bedroom apartment is part of an exclusive development by Paradigm Living of 1 & 2 bedroom apartments in a desirable location.

The listing is described online by Zoopla as: “Set in a vibrant and busting community which offers a host of diverse shops and restaurants close by as well [as] nearby lakes and woodlands to explore.”

The listing reads: “This is a one bedroom ground floor apartment, comprising of an inviting entrance which leads to hallway and with built in storage.

“The kitchen, lounge, diner offers a room wth plenty of space for relaxing and entertaining.”

It went on: “The bedroom is of good proportion and the bathroom includes a bath. Externally there is parking included.”

The property is ideal for a working professional or young couple looking for their first home. The one-bedroom has a modern bathroom, with a bathtub included. “The bathrooms are fitted with modern sanitary ware and down lighters finished with fully tiled walls,” the listing read.

The kitchen is fitted with “stunning” high quality Symphony kitchen units with “soft close units which are complemented by a laminate upstaged and enhanced by downlighters.” As well as this as standard, a Zanuzzi built in single oven, electric hob and extractor hood as well as a freestanding Zanuzzi fridge freezer and washer dryer are included in the property.

The property boasts low maintenance costs with energy prices starting from £46 and water costs starting from only £19.

Why is this property so cheap?

The listing reveals the property is available for “shared ownership scheme at 25 per cent” therefore the listed price of £42,875 is inclusive of a 25 percent ownership, however when speaking to Ian Causton, Taylors, Leagrave Property Manager he revealed that: “the property is listed for £42,875 at 25 per cent, however it is available to purchase up to 70 percent of the property”.

What is a shared ownership home?

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According to Sharetobuy.com: “Shared ownership is essentially for people who would like to own their home but cannot afford to buy on the market.”

The cost of ownership is reduced by:

1. Usually the rent on the property is less than the rate charges on the open market, usually charged at 2.75 percent of the property value per annum

2. In some cases you can start with as little as 25 percent share

3. Your deposit can be 5 percent of the price of the share, not of the whole property

4. Generally, stamp duty land tax (SDLT) or simply ‘stamp duty’ can generally be deferred until your shoe reaches 80 percent

What are the benefits of shared ownership?

Generally, when you buy a shared ownership property, you can purchase between 25-75 percent of the market value, depending on how much you can afford. This reduction in mortgage costs means you can put down a much smaller deposit, sometimes even smaller than you think!

Even with a small deposits, you can still benefit from growing equity as you pay your mortgage, if your home increases in value. An increase in your home’s value could benefit you when you come to sell your share.

An example given by Sanctuary Homes is: “If you bought a 50 percent share of a £120,000 home (£60,000) that increased in value to £140,000, then you could sell your share for £70,000.”

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On average, even with the cost of your mortgage repayments plus rent, Sanctuary Homes has found shared ownership properties work out cheaper per month than an equivalent property would be to rent privately. This means that you might be able to reduce your monthly outgoings whilst building your equity, and enjoying all the benefits of living in a new build home.

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