1st time buyers

our cool contemporary abode, loads of light, and beautiful simple style, just the thing for your first pad...

Many young people find it increasingly difficult to get on to the property ladder. With banks insisting on much larger deposits and house prices still high it is impossible for some to afford their first home. As a result young people stay at home with their parents for much longer – putting a strain on the parents and the kids!

abode4 offers another option allowing young adults to get on the property ladder by building a home in their parents’ garden. This means they can:

Avoid renting	Renting prevents people from building up a nest egg for a deposit. They never get any equity in their home and find it tough to save towards a deposit.
Avoid family rows!	Much as we love our families we all know the added pressure it can bring being under each other’s feet the whole time especially as we grow older and need independence.
Build Equity	Owning a property gains equity by paying back a mortgage on it and benefitting from increases in value. This means a bigger sum available for the purchase of a larger home in the future.
Save money	The modern build quality of an abode means they are cheap to run saving money. Low cost finance makes them generally cheaper than renting.
Design Options	Custom design to your taste with the abode team. We have hundreds of different options to make sure your abode4 is right for you.

abode4 1st time buyer solutions…

Case Study for property in Bristol comparing renting to an abode

Solution	Renting	abode4
Monthly Cost	£650.00*	£234.04**

*Based on rental properties listed December ‘09
**Based on a purchase price of £40,000 for the abode with no deposit at a competitive rate of 3.6% over 20 years.

Moving On

There are various exit strategies for the first time buyer wanting to move on to a larger home from their abode:-

The parents buy out the equity built into the abode “back” from their kids with or without the assistance of a bank re-mortgage, the abode owner may then move on up to a larger home with a deposit for financing (but don’t expect the same quality or choices you had with the abode!). The parents can then use the abode for any number of purposes, including rental for additional income, occasional guest quarters, home office or in fact to move into themselves and then rent the main house!

Sell the entire property of the main house and abode and split the equity on the basis of fair value, the house and abode will have increased value based on the addition of the abode, and in general will have appreciated in line with the housing market (unfortunately not so as late but over a period of decades property has appreciated at a steady rate). Each part may then take their equity to invest in separate properties.