Crest Nicholson Regeneration, the developer behind Birmingham’s latest apartment scheme, Central Plaza at Park Central, is appealing to anyone currently renting a property in the city centre to consider the advantages of purchasing their own home.
According to research by property website Zoopla, the average cost of renting an apartment currently stands at £669 per month for a typical two bedroom apartment – meaning that it is now cheaper to own a property than rent in 90 per cent of locations across the country.
Under latest statistics released by Crest Nicholson a spacious two bedroom, two bathroom apartment in Central Plaza, priced at £160,000, could cost as little as £553 per month when purchased under the government’s equity loan scheme, FirstBuy – marking a monthly saving of up to £116.*
FirstBuy is offered by Crest Nicholson, together with the Homes and Communities Agency (HCA). Under the scheme, purchasers pay just 80 per cent of the price of their new home, made up of a five per cent deposit and 75 per cent mortgage. The remaining 20 per cent of the full purchase price is covered by a loan, paid for by the developer and the government. The equity loan is interest free for the first five years, then in year six an interest charge of 1.75 per cent is payable. The interest charge will then increase annually by RPI plus one per cent from year seven.
Ruth Williams, sales manager at Park Central said: “It is widely understood that renting a property is ‘dead money’. In Birmingham, people are paying up to £750 per month for apartments in the city centre with nothing to show at the end of the lease contract.
“Many first time buyers feel as if they are stuck on a treadmill and getting nowhere because they can’t save the large deposits required, but under FirstBuy, people could own a two bedroom home at Park Central with a deposit of just £8,000. What’s more, based on the monthly mortgage repayment figures we have calculated, by purchasing an apartment under FirstBuy people could actually save themselves money, whilst investing in their future at the same time.”
Officially launched to the public last month, Central Plaza represents the latest £15 million phase of Park Central, which when complete, will deliver 132 luxury one and two bedroom apartments sitting over an undercroft car park. The majority of the apartments will benefit from gated parking, in addition to stunning views across the eight acres of landscaped parkland at the heart of the development and the city centre beyond.
Park Central benefits from an advantageous location at the centre of Birmingham, with easy access to both the business district and a host of leisure destinations. Birmingham city centre is continuing to receive an influx of significant inward investment, with a number of multi-million pound schemes already underway including the re-development of New Street Station and Grand Central shopping centre – in addition to future projects such as Paradise Circus, which will change the face of the city.
For more information about FirstBuy or to learn more about Central Plaza, people are advised to visit the sales office which is open daily from 10am to 5pm and is located at 61 Mason Way, Birmingham B15 2GE. Alternatively, people can call 0121 666 4666 or visit www.parkcentral.co.uk
? Figures shown are based on the current market price of the apartments at the time of publishing and are based on purchases made through the FirstBuy equity loan scheme. The mortgage repayment value is based on figures from mortgage provider Nationwide, when taking out a 25 year mortgage term with a two year fixed term rate of 2.74% APR.