Government have today offered everyone a chance to buy!

lostinrates

What about FTB like us who HAVE been saving prudently? Are we entitled to the 30% on top of that? Why should our adherance to the guidlines laid out by banks and economists of saving to buy seems rewarded by a big slap in the face.

Incidently, giving those FTB who've managed to save a big fat nothing and see no need to make lifestyle changes to do so, a big 30% checue....is this not just creating MORE potential for reposessions later on down the line.

When is the latest we can have a general election? I'm not going to make any buy decision before then I think.....this lot I find as financially responsible as a bunch of bananas.

mystic_trev

EVERYONE in Britain has been given three weeks to move house and then redo the bathroom as part of the government's plan to boost the ailing economy.

Treasury officials believe there will be a beneficial 'knock-on effect' of the mass house move involving removal firms, trips to B&Q and £90-an-hour plumbers making questionable remarks in front of your wife.

Chancellor Alistair Darling said: "It is now more than 20 years since moving house replaced coal mining as this country's chief economic activity.

"It is now so important to our economic well-being that if no-one moves house, everything turns to !!!! within seconds.

"So rather than do something pointless and irrelevant like suspending stamp duty, it's really much easier if we just force you all to move."

http://www.thedailymash.co.uk/news/society/government-orders-everyone-to-move-house-200808051153/

baby_boomer

lostinrates wrote: »

When is the latest we can have a general election?

May 2010.

The Summer of 2010 will be a good time to buy IMHO on economic grounds.

lostinrates

baby_boomer wrote: »

May 2010.

The Summer of 2010 will be a good time to buy IMHO on economic grounds.

Thank you, I think you miht be right.

neas

Those complaining its only new houses....

The governemnt can't offer free loans for 5 years on any house because there isnt that much money slooshing around for it.

Also this move is meant to save the housebuilders, safe the housebuilding industry from going tits up.

As a FTB this doesnt even appeal to me whatsoever, I know new builds are overpriced, I know house prices are dropping and buying now would mean putting me straight into negative equity, I know alot of people who want to sell their houses are in trouble... and I am glad Im not with them.

The only solution for the housing market is to let it run its course back to Normal 3.5x earnings thresholds. So in my area average earnings are approx 16-18k... so a 2 bed should be about ~60-70k and a 3 bed 80-90k.

adr0ck

Paul_N wrote: »

Never fear, its great news for you too. This silly scheme for helping FTBers will actually accelerate the crash on older properties. You are only eligible for the 30% loan if you're 1. a FTBer, and 2. buying a new build.

So what this scheme is actually doing, is diverting any would be FTBers towards new builds, where a deal is done between FTBer and developer, leaving all other older houses with even less demand. This scheme will not help chains. This scheme will not help underpin prices of older homes. This scheme will help developers trying to shift old stock and limit the price drops on them as much as possible. It may even help the developers build some new stock.

Ultimately its a scheme to bail out the developers, screw the FTBer after 5 years, and hopefully in the mean time get some more houses built.

paul's got it spot on

the purpose of the scheme is to enable large developers to keep building

not to help the housing market

Ian_Griffiths_Halifax

There are wider implications to a housing slump than just FTBs not getting onto the market. There's all the Construction Industry jobs that are at risk, all these people spend their money after earning it, and so if it isn't earnt then they can't spend it again in such as shops, bars, etc. Then there's all the other jobs such as garden centres, DIY stores, Insurance Companies, all effected when people can't move. All this money, not being earnt and can't be respent.

I'm certain there must be some other way of the Government helping out FTBs if they insist in doing so.

As an example, they can do attachments of earnings for such as Student Loans, so why not simply lend a controlled/affordability assessed deposit, interest free if they must, and take payments from pay. If done correctly and subject to them taking on a mortgage of a maximum amount at a maximum interest rate, then this could work. They could get a 'Decision in Principle' for the loaned deposit, which would tell a lender what they maximum is that they could lend to a borrower.

In my experience, it isn't the payments that FTBs struggle with, it's the Deposit, Stamp Duty, Arrangement and Legal Fees etc.

I'm not saying have all the answers to the housing woes, but these are just suggstions. Having Government Ministers come up with schemes, whether or not it is with advice from Lenders, doesn't work. They need advice from the Coal Face so to speak, but I can't see them asking your normal everyday broker or FTB for suggestions.

mr_magoo_5

baby_boomer wrote: »

May 2010.

The Summer of 2010 will be a good time to buy IMHO on economic grounds.

Could be right,a good indicator will be when we have 3.5 hours per day of home buying/ maintenance reality shows

Ian_Griffiths_Halifax

mr_magoo wrote: »

Could be right,a good indicator will be when we have 3.5 hours per day of home buying/ maintenance reality shows

Surely we have more than that already.

moanymoany

In 1989 we bought a large house with a large 'low start' mortgage. Not quite a loan interest free for five years, but similar enough as the low start was for 5 years.

Five years later - 1994 - I had lost my high paid job as a solicitor as the firm had gone t*ts up. The interest rate had soared to 15%, dh's company made more than one third of it's employees redundant and we were waiting to see if he would be one of them, jobs across the board, and I have to say life was very difficult.

I would say to any first time buyer - think long and hard before going for this. We have been told that this recession is going to be - at least - as bad as 89 - 96. If it all goes wrong and you have a mortgage it is 39 weeks before the state steps in to help you pay the interest. In 89 - 96 it was much sooner. You will get housing benefit much more easily if you are left living on benefits.