First Property at 22 and a NEW way to Invest OFFPLAN.

[Eamon Heggarty]

Hi all. 

I'm 22 and from the UK and currently just bought my first property. I would just like to share my recent investment and how ive been able to pay for it with a new technique ive never heard off or seen. 

It is a 1 bedroom apartment in a new off plan small 4 story block building in the city center of Birmingham UK. 

The property is an off plan investment and its purchase price is 15% under market value at $117,000. The developer has set up a payment scheme whereby i (the RE) pays a deposit and legal fee to secure the property (3% off the property value). Then after this i make payments once a month for 24 months to cover the 30%. Therefore 30% off $117000 = $35,100. This is this divided by the 24 monthly to calculate my monthly payments ($35,100/24= $1462.50/month). 

After the 24 month period i will secure a mortgage for the reminder of the property value ($81900). 

ADDITIONALLY to this (this is the bonus ball) the developer has guaranteed 5 years rental income, weather they find tenants or not, i still get my $650/month rent cheque (-8% for management fees).  Thus $598/month for 5 years guaranteed. 

I am currently 6 months into paying the monthly installments and the property has appreciated to $155,000. (STILL OFF PLAN). 

All in all i think i've made a good invest and would like to hear what any of yous think, good/bad/ugly.

Thanks :D