Buy or Rent?

Owning a new Park Reach home could be more affordable than you think as the examples below show.  

If you are currently renting, you probably realise that whilst it can offer flexibility this works both ways as it also comes with insecurity. 

There is no better feeling than buying your first home and being able to mark your own mark upon it. 

As long as you have a small deposit and some level of income security, obtaining funding can be easier and cheaper than you might think and purchasing a home is often cheaper on a monthly basis than renting. 

Certainly in the long term, as your mortgage payments reduce the capital balance and the market grows, even at a slow and steady rate, you will be much better off. 

We can speak to you about your purchasing options and introduce you to FirstXtra who will quickly assess the best way forward for you. 

 

 

We asked FirstXtra to look at the monthly costs for a typical purchase for us* so the numbers were a bit clearer. Under this typical scenario on a £300,000k purchase, the monthly cost of buying was assessed as being around £1,1,40 per month and this is pretty much the same or less than an equivalent rental in Newbury at the moment.

 

The great news about buying though is not only will you benefit from the capital appreciation of the property, you will also pay down the debt every month. In this typical example, for every pound paid in interest, more than two pounds is paid off the debt!

 

 This means in two years alone, over £18,000 is paid off the debt! This means if you sell, even after two years, assuming a modest 4% per year growth you will have an excess equity of  £43,170!**

You can find more examples via our VIP Section.

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Year 1

Total Interest Charged Calendar Year

£4,393.41

Total Debt Repaid Calendar Year

£9,252.63

Year 2

Total Interest Charged Calendar Year

£4,207.60

Total Debt Repaid Calendar Year

£9,438.44

Year 3

Total Interest Charged Calendar Year

£4,018.04

Total Debt Repaid Calendar Year

£9,628.00

Year 4

Total Interest Charged Calendar Year

£3,824.70

Total Debt Repaid Calendar Year

£9,821.34

Year 5

Total Interest Charged Calendar Year

£3,627.45

Total Debt Repaid Calendar Year

£10,018.59

*Purchase price £300,000, mortgage amount £225,000 (based on 5% own deposit of £15,000 and 20% contribution from Help to Buy Equity Loan of £60,000), 20 year term, 5 year discounted rate at 1.99% available as at 30/08/18

** disclaimer as before

2020 Feltham Properties ltd.

All incentives financial or otherwise are at our discretion and subject to mortgage lender approval.

Details are subject to ongoing refinement.

Images are computer generated and are indicative of accommodation. 

Purchasers should ensure a full specification forms part of the contract of sale.

Computer generated images are representative only.

All dimensions are approximate, areas are gross internal.

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A Feltham Group Company