Buyers of new homes, being built as part of a development in Keighley, West Yorkshire won’t have to take out a mortgage. That’s the claim made by an investment company that are selling apartments in the Parkwood Court new house development situated in the Aire Valley. Instead of taking out a mortgage, buyers can use an innovative investment plan to pay a 50% deposit, asked for in monthly instalments, while the remaining 50% is paid through rent given to the developer. Since the developer offers new home buyers a developer’s loan with no questions asked, there’s no need for a mortgage application. Perhaps unsurprisingly, the investment opportunity has attracted much interest, with four out of five properties already being sold.
Loxley McKenzie, managing director at Colordarcy, which is the property investment firm behind the development, gives an example of how it works: “If you take a one-bedroom property available at £60,000, 50% of the cost would be spread over 24 monthly payments of £1,250 a month.
“What’s wonderful about this investment plan is that because each property also has an assured rental income of 10% for five years, this gives a rental return of £6,000 per year, which covers the other half of the developer’s loan. As such, within five years, the entire cost of the new home will be completed. In effect, this gives the buyer a mortgage-free asset, producing an income for life.”
The Parkwood Court new homes development at Keighley is only 12 miles from Bradford and under 20 miles from Leeds. For a one-bedroom apartment, prices start from £60,000 and for a two-bedroom apartment prices begin at £70,000. The development of new homes is scheduled to be completed in December 2017.