Shared Ownership advantages and disadvantages please

Main thread with both sides of the argument debated with peoples real experience. Well worth going through the whole thing, but be warned it is long thread.

https://forums.moneysavingexpert.com/discussion/3177256

Is it what you dreamed of as a child?

Would you consider it for anything else - such as a mars bar, holiday, or car?

gaz141 wrote: »

I would ignore anything brit1234 has to say on the subject if you want impartial advice. This poster seems to take great delight in dictating to the rest of us what a great scam shared ownership is, you only have to see his/her signature on the scams he/she believes we are duped into

:exclamatiScams - Shared Equity, Shared Ownership, Newbuy

Gaz141, if you bothered to read the thread I suggested you will see it is a debate between people for shared ownership and those against it. It is further broken down to debate about specific issues in the scheme. I considered the scheme, visited sites did the maths, saw the problems my friend had with it and researched it after that I considered it a scam in much the same way PPI text messages are when you can get it free on this site. Knowledge is power.

What is more impartial than people debating this issue from both sides on this thread?

https://forums.moneysavingexpert.com/discussion/3177256

gazfocus wrote: »

As gaz141 says, ignore anything brit1234 says. He's been proved wrong time and time again on these forums and is just bitter at the fact he can't afford to buy a house.

Shared ownership properties can be good if you understand fully what you're getting into. I'm in the process of buying a shared ownership 3 bed semi and I think it's a good way to get on the property ladder.

The only time I was proved wrong on this forum was the date house prices would of fallen a certain amount by. Now I wasn't expecting the BOE to drop interest rates from 5% to a all time low of 0.5%, something which has never ever happened including in the 200 years of BOE interest rates, however I am still right that house prices are continuing to fall.

Now when you say I have been proved wrong time and time again you are clearly lying. You may attempt to slander me in an attempt to discredit me as you don't like me warning people of the dangers of shared ownership but it won't stop me.

As for saying I'm being bitter because I can't afford a house that is plain wrong. You say you can afford a house with a £6,000 deposit, where I have a £60,000 deposit and costs ontop. With my deposit, good job and top credit rating I would suggest I am in a excellent position to buy, far more than most. Get your facts right.

Shared ownership is a scam designed to keep house prices inflated, milk the tenant (notice I don't say owner as you technically never own it even with a 100% share, read the small print). You will also see many people on this forum who understand shared ownership agree with me.

Beware the true cost of a shared-ownership home

Why buy 50% of a property when you could afford 100% in a downturn?

Shared-ownership schemes would, I thought, be among the first things to disappear in the downturn. Why buy a 50% share in a boom when you can afford 100% in the bust?

Yet developers have turned to shared ownership as one of the few ways to flog their often overpriced luxury flats and apartments.

Adverts are plastered over national and local newspaper property sections. They all too often suggest the developer is doing you some sort of favour. Yet what too many of these schemes do is lock young adults on to the first rung of the property ladder with little chance of moving up.

The biggest attraction is that you can buy a property with a very small deposit. It may be just 5% or 10% of the share that you are buying. On a £200,000 flat, mortgage companies will want a £20,000 deposit before you qualify for a loan. But in a shared-ownership deal, a buyer taking a 30% share can get away with a deposit of as little as £3,000.

It's also worth noting that the housing associations working in this field are genuinely striving to help young buyers.

But my gripe is that it's all too easy to overpay. Many shared-ownership properties are not just overpriced in absolute terms (isn't nearly all property?) but, more importantly, overpriced relative to similar properties in the full-price market. And I should know. I bought one in 1989 and it was the worst financial decision of my life. If you want to climb the property ladder, these are the basic rules: (a) Don't buy when you're too young. Clear your debts and start saving properly. (b) Buy the worst place in the best street that you can afford. Then (c) Do it up, get some extra cash by renting out a room to a lodger, and sell it on.

http://www.guardian.co.uk/money/blog/2010/jul/31/beware-cost-shared-ownership

OP, you are never going to get a balanced view of the subject once brit1234 starts taking over the thread. As far as I am aware, he has never owned a shared ownership property, so have to agree with the others - best to ignore him.

From personal experience (I lived in a SO property for five years), you need to judge each property/ development on its own, there are no universal pros and cons. For me, it allowed me to live in an area that I would not otherwise be able to afford, and at considerably less cost than equivalent rental properties. I made a large profit when I sold, with the first viewers offering the full asking price. However, there will be others with opposite experiences.

My best advice would be to do your own research, and if you are going to listen to others, make sure they actually have first hand experience of SO.

leveller2911 wrote: »

When you have had yours for a number of years and gone through the process of selling it and once sold come back and post your personal experience then I may take notice.


The general consensus on SO is that its a fudge to keep house prices high. I personal think the only true way to get on the ladder is to ,well buy a whole house .;)

I know a few people who have bought and sold SO houses and they have all had major problems from yearly increases in rent,increase in mortgage rate,getting permission to carry out alterations and then when selling prospective buyers being put off by Housing Associations incompetance and the very small fineprint in the contracts.

Another one who is forming an opinion on hearsay ...