Company Giving Deposits - No Strings Attached

Dellydea

Hi All,
I'm wondering if anyone has heard of the company ownyourownhome.ie. I came accross it when I was doing some research into rent to buy schemes. I came across the above named website and e-mailed them. During a course of 5 or 6 e-mails I was advised by the company not to undertake the rent to buy scheme but just to buy a house and they would organise the mortgage for me. when I told them that I didn't have a full deposit she replied and told me that the company would supply the deposit and I would NOT have to repay it and I would also get a furniture allowance.
Now I am not niave and do believe that this seems too good to be true. I'm just wondering if anyone else has any dealings with such a company or if you would have any information on it at all.

Jo King

Are you over 18?

Atlantic Dawn

The catch is you will get the worst possible mortgage available from a sub prime lender. It's reasons like this that got us in the mess we are in today, wait until you have a deposit first before considering buying a house.

Dellydea

Atlantic Dawn wrote: »

The catch is you will get the worst possible mortgage available from a sub prime lender. It's reasons like this that got us in the mess we are in today, wait until you have a deposit first before considering buying a house.

Thanks for that Atlantic Dawn. I knew it wouldn't be something I'd partake in too easily but it's good to know the catch.

Dellydea

Jo King wrote: »

Are you over 18?

yes I am why?

_Kaiser_

Called them there out of curiosity.... the website is a bit thin on the details:

From what he said:
- They're not sub-prime (asked that specifically) - deal mostly with BOI, AIB, EBS
- The way it works is that they buy a strip of houses from a developer/builder at below cost (so say a house costs €120k, they might only pay €80k for it) and then sell it to you for still less than retail (so say €100k in this example)
- The deposit is then built into that €100k (funiture allowance works the same way)
- A prerequisite is that you will qualify for a mortgage of that €100k of course
- The objective is that the repayments are equal (or slightly above) what you may currently be paying in rent.

So, what's the catch?

quozl

Kaiser2000 wrote: »

- The way it works is that they buy a strip of houses from a developer/builder at below cost (so say a house costs €120k, they might only pay €80k for it) and then sell it to you for still less than retail (so say €100k in this example)

You'd have to accept that it is below retail. I think that's the bit where you're getting taken for a sucker.

m'lady

quozl wrote: »

You'd have to accept that it is below retail. I think that's the bit where you're getting taken for a sucker.

Can you elaborate on that comment, it does not make any sense to me?

D3PO

m'lady wrote: »

Can you elaborate on that comment, it does not make any sense to me?

why you even need somebody to elobrate is beyond me.

you get nothing in this world for free. If its too good to be true than it usually is.

Anybody even thinking about this needs their head examined,

Amberman

Kaiser2000 wrote: »

Called them there out of curiosity.... the website is a bit thin on the details:

From what he said:
- They're not sub-prime (asked that specifically) - deal mostly with BOI, AIB, EBS
- The way it works is that they buy a strip of houses from a developer/builder at below cost (so say a house costs €120k, they might only pay €80k for it) and then sell it to you for still less than retail (so say €100k in this example)
- The deposit is then built into that €100k (funiture allowance works the same way)
- A prerequisite is that you will qualify for a mortgage of that €100k of course
- The objective is that the repayments are equal (or slightly above) what you may currently be paying in rent.

So, what's the catch?

The catch is that prices continue to fall and interest rates go up...so the developer is willing to use a shill to offload to a sucker before they get caught holding the baby for an amount less than retail.

This is obvious, yes?

m'lady

D3PO wrote: »

why you even need somebody to elobrate is beyond me.

you get nothing in this world for free. If its too good to be true than it usually is.

Anybody even thinking about this needs their head examined,

No where in this thread has anyone mentioned anything being given for free, I am as cynical as the next person and asked the poster to explain what he meant by his comment, if you are not prepared to explain, please let another poster elaborate, and spare the rude comments.

D3PO

m'lady wrote: »

No where in this thread has anyone mentioned anything being given for free,.

From the first post

when I told them that I didn't have a full deposit she replied and told me that the company would supply the deposit and I would NOT have to repay it and I would also get a furniture allowance

not sure of your definition of Free is but you need to check it

_Kaiser_

Amberman wrote: »

The catch is that prices continue to fall and interest rates go up...so the developer is willing to use a shill to offload to a sucker before they get caught holding the baby for an amount less than retail.

This is obvious, yes?

That's not really a "catch" though...

The reality is (and it's something that far too many Irish people forgot in the last decade) is that property prices CAN (and do!) go down as well as up!

If that's the only thing then there's no difference to buying a house the "normal" way - you're taking the same risk.

If you're buying hoping to turn a profit then yes, you're going to be exposed but if you're buying it to live in as a home then what odds if the prices continue to fluctuate. It only matters when/if it's time to sell up again.

m'lady

D3PO wrote: »

From the first post

when I told them that I didn't have a full deposit she replied and told me that the company would supply the deposit and I would NOT have to repay it and I would also get a furniture allowance

not sure of your definition of Free is but you need to check it

Ok, in fairness I agree with you on that, its obviously incorporated into your mortgage somehow. I still fail to see how its any different to the next person going to a bank themselves and taking out a mortgage, running the very high risk of the house prices falling?

It was assumed that this company is a sub prime lender, which seems that it is not the case?

D3PO

m'lady wrote: »

Ok, in fairness I agree with you on that, its obviously incorporated into your mortgage somehow. I still fail to see how its any different to the next person going to a bank themselves and taking out a mortgage, running the very high risk of the house prices falling?

It was assumed that this company is a sub prime lender, which seems that it is not the case?

as I read this thread.

Company A buys a bunch of housing stock off a distressed developer for say 100k per house "current market value" say 150k

They sell the house to mugs erm buyers for 120k so less than "market value" but for the purposes of the loan application indicate to the bank deposit of X paid by buyer i.e the deposit.

So you could look at it 2 ways

1. Your saving 30k off "market value"

2. If this company could buy for 100k off the developer then market value is 100k

For me #2 is my view on this.

_Kaiser_

D3PO wrote: »

as I read this thread.

Company A buys a bunch of housing stock off a distressed developer for say 100k per house "current market value" say 150k

They sell the house to mugs erm buyers for 120k so less than "market value" but for the purposes of the loan application indicate to the bank deposit of X paid by buyer i.e the deposit.

So you could look at it 2 ways

1. Your saving 30k off "market value"

2. If this company could buy for 100k off the developer then market value is 100k

For me #2 is my view on this.

But is that possible as a private individual buyer?

In the same way as you get discounts for larger volume buys, is this not the same thing.. yes you're paying more than the reseller/company but they are passing on some of the savings their "purchasing power" gave them while still turning a profit.

So they get a return, and you pay less than if you'd approached the developer directly.. seems win-win to me, but there's probably something I'm still missing

D3PO

Kaiser2000 wrote: »

But is that possible as a private individual buyer?

I believe its entirely possible. If you wanted to liken it to retail and bulk buying as you have, consider it the same as a liquidation sale

yes an individual in general couldnt buy direct from a distributor at a discount but it could buy at a discount if there was a liquidation sale.

Jo King

Dellydea wrote: »

yes I am why?

Then you are old enough to sign a contract to purchase. You are also old enough not to believe in fairies.

noxqs

Do not buy a property in this market. Do not for a moment think that the current prices are a good deal. The downturn has just begun and the NAMA firesale will begin next year.

But its your money.

P.S.

For 80,000 euros you can buy a decent property in central Berlin next to excellent public transportation and amenities. In a functional economy. In light of this, and massive public sector paycuts and a new budget in december 7, justifying the current house prices as anything but a rip off is pretty hard.

Mary Hairy

There was an old stroke for getting 100% loans. I hope this is not it coming back. I still have the shivers when I think about it, and it was years ago.