Good News for First Time Buyers

LadyEmlyn

Hello Everyone

Amidst all the doom and gloom about the difficulties in the housing market I thought it might cheer up some first time buyers to know that a great way to buy is emerging in the UK.

Not sure if anyone's heard of this - it's called Rent to Own. It's not a goverment run scheme, it's a set of private individuals who are selling unwanted properties on to (usually) first time buyers who are struggling to get a mortgage. They pay a small deposit and then extra payments on top of normal rent. The deposit and extra payments go towards the purchase price and the aim is for the buyer to complete the purchase two to three years on. Brilliant.

Google it and see what comes up if you're interested (although this might throw up a lot of stuff from USA and Australia as it's been done there for years now).

Good news, no?

Chris2685

What stops these people doing the same thing that happens to those who 'sell to rent'? Where they sell the house, expecting to pay rent on it afterwards, but after a year or 2, they are told the rent is going up and they have to move out?

Couldn't the same thing happen with this?

LadyEmlyn

No, there are agreements written up via solicitors. They're basically buying on a lease option, which effectively gives them the right to buy the property at the end (or before) the agreed period - the price is set now so there won't be any nasty surprises...

Jumping_Bean

Even better news for first time buyers is that house prices are falling at the fastest rate ever recorded. They just need to wait a while and then won't need to be suckered into schemes like this just to buy a house.

Great news for landlords though: We've come up with a scheme called rent to own where you can offload your overpriced and rapidly depreciating assets onto first time buyers. Great eh? Just don't think too much about the morality behind it.

Jumping_Bean

LadyEmlyn wrote: »

the price is set now so there won't be any nasty surprises...

The nasty surprise will be that the property is worth nowhere near what they paid for it.

LittleMissAspie

How is this different from:
a) Getting a normal mortgage with the small deposit and paying interest (ie rent to the bank) and repayments (extra payments on top of the interest)?
or
b) Continuing to rent where I am now while saving my small deposit and my "extra payments" where they'll get interest, then buying a bigger, nicer house in 3 year's time for a lot less?

LadyEmlyn

Well it's mainly aimed at people who can't get a mortgage at the moment for whatever reason i.e. the banks want 10% and they don't have it or they might have a blip on their credit rating (which can be ironed out over time).

Some people don't want to rent and save - they want the stability of not being turfed out when their landlord goes under and they want to be able to treat their home as their own and feel settled in it.

As for house prices tumbling, maybe they will go down further or maybe they'll start to pick up again soon - it's hard to say and there are so many varying opinions on it. But if prices do come right down i.e. there's a crash, it doesn't necessarily mean that mortgage lending will ease off any and it might still be difficult for people to get mortgages.

I suppose it depends how ready you are to get out of rented accommodation or living in some kind of unbearable situation i.e. living with parents etc..

carolt

No, it really depends on where you see house prices going. In a rising market it would be fantastic - fix the house prices at today's levels, but only pay when it's convenient. But they didn't offer it then - wonder why not? :rolleyes:

Now that the whole world and his brother knows that prices are falling, it's madness locking yourself into a commitment to buy at current prices, in a couple of years. If you want to buy in a couple of years, it makes far more sense to wait 2 years and buy then, when prices are lower.

Conrad

BOTTOM LINE;

Someone somewhere spent time dreaming this up, so before we consider why they expended this effort and money, lets first consider that persons own life

1) They may well have a family to keep, and kids to leave wealth too - this is thier first priority. I'm sure they wouldn't give away time and money that would in turn mean thier own kids get to have less time and money

2) They have choices to make throughout the day - why would they chose to spend time on this project?

3) They have an end goal in mind obviously - what is that goal?


Mmmmmmmmmmmmm

macaque_2

Amidst all the doom and gloom about the difficulties in the housing market I thought it might cheer up some first time buyers to know that a great way to buy is emerging in the UK.

Not sure if [STRIKE]anyone's heard of[/STRIKE] you are daft enough to swallow this - it's called [STRIKE]Rent[/STRIKE] 'Shafted to Own'. It's not a goverment [STRIKE]run scheme[/STRIKE] scam, it's a set of [STRIKE]private individuals[/STRIKE] desperate BTLs who are [STRIKE]selling[/STRIKE] dumping unwanted properties at inflated prices to [STRIKE](usually) first time buyers who are struggling to get a mortgage[/STRIKE] mugs. [STRIKE]They[/STRIKE] The mugs pay a small deposit and then extra payments on top of normal rent to subsidise the BTL. The deposit and extra payments go towards the purchase price [STRIKE]and the aim is for the buyer to complete the purchase two to three years on[/STRIKE] and help the BTL defer foreclosure. Brilliant.

Google it and see what comes up if you're interested (although this might throw up a lot of stuff from USA and Australia as it's been done there for years now).

Good news, no?[/quote]

CHR15

Sounds more like a :spam: post to me.