How do you finance buying a new build show home?Make Text Bigger
I am in early talks with a large Home builder. They will be putting up 350 units in a town where I currently have 3 properties. I like the town and I like the idea of a new build. I’m looking to buy 1 or 2 three bedroom houses from them.
It was suggested by the developer that I could buy their show home and then that could be leased back to me for the duration of the build (2 years +, 5% yield and an uprated showhome spec). I quite like the idea of that.
Meanwhile it’s been suggested by a broker that this is a commercial proposition so that would likely mean a commercial mortgage, higher rates fees and a bigger deposit and that usual BTL rules won’t apply. I don’t like the idea of that!
Any suggestions on how the showhome could be best financed?
Alternatively, to get in early I could always secure one or two of the ‘normal’ plots off plan as potential BTLs. But in doing an off plan deal I do understand there are some risks.
Any suggestions from the community?
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