12 Jul How Does Depreciation Affect Your Prefabricated Home?
Do our prefabricated homes depreciate and if so, how does this impact you?
Depreciation is a concern for anyone looking at investing in or buying a new property. This is particularly pertinent for those looking at prefabricated homes due to the stigma’s surrounding prefabricated homes and because homeowners do not always own the land the homes are placed on. However, instead of talking about why this is the case, Concept Capital Group wants to inform their clients straight away about how depreciation works in their buy-to-let prefabricated home opportunity and how depreciation will impact them.
How Will Your Buy-to-Let Property Depreciate?
Depreciation affects Concept Capital Group clients who wish to stay beyond 2 years. A new home is purchased for £39,999 and the maximum term of the buy-to-let opportunity is 12 years. The home does not depreciate in the first 2 years and will therefore still be valued at £39,999 in year 2. The valuation of the home at the end of year 12 is £29,999. Below is a table outlining the value of a new home over the 12-year term:
What is Concept Capital Group’s Guaranteed Buy Back?
Concept Capital Group has a guaranteed buy back in place for your home. This means that every 2 years, a homeowner has the opportunity to sell their unit back to us at the values shown in the above table, on the condition the homeowner gives Concept Capital Group at least 6 months’ notice.
How does the Guaranteed Buy Back Impact Your Returns?
The returns in this opportunity come in the form of rental income. The price of one home is £39,999 and with an annual return of £3,999.90, your profit over 12 years will be £47,995.20. At the end of the 12-year term, the guaranteed buy back kicks in and you receive another £29,999 from us, leading to a total return of £77,997.80, minus your initial investment amount of £39,999, you are up £37,998.80. To see what the returns would be for each buy back year, please see the table below:
Why Purchase into an Opportunity like this?
For those looking to grow their savings, Concept Capital Group advertises this opportunity as an income-based solution, not a capital growth-based solution. If you are looking for capital growth or traditional property that increase in value, this is likely not for you. However, if you are looking for a hassle-free property to provide you with extra income either monthly, quarterly or annually, then, as our existing clients say, this is one of the best value for money property opportunities on the market.
Depreciation is a factor Concept Capital Group asks all their prospective clients to consider before deciding to purchase. First, because the company believes in ensuring all clients are as informed as possible, and second because Concept Capital Group is confident in the buy back offer and the opportunity they are providing to clients. To learn more about this opportunity, check out their website, send an email to [email protected] or call today on 0208 138 1888.