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Deferred Equity. To Buy Or Not To Buy
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No, they are grateful to those ripping them off, which is why they are victims.poppysarah wrote: »Another bizarre idea - does it not strike the victims as a scam? ...After the uprising of the 17th June The Secretary of the Writers Union
Had leaflets distributed in the Stalinallee Stating that the people
Had forfeited the confidence of the government And could win it back only
By redoubled efforts. Would it not be easier In that case for the government
To dissolve the people
And elect another?0 -
I wouldnt advise anyone against this. Its not like a shared equity where you have to pay rent. Ive spoke to the bank and will have no problems remortgaging. Ive had a free £26000 loan for a year technically.
Technically speaking, you now owe £136k on a house worth £110k. So you are £25k down in a year....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
There seems to be alot of bad feeling towards these schemes. I have not been ripped off . I looked alot into this before i bought. The whole country is suffering from the house price drop. As the price has dropped the builders 15% has dropped too, so i owe them less. i think people are geeting blinkered thinking i pay rent on their 15%. i do not. If i wanted to sell now, the 15% would be payed back from the sale (dont forget my mortgage is less in the first place!) or long term im buying it for less. Look at the scheme, not the state of the country.0
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Im not a first time buyer. How is it overpriced?0
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Do you owe them less?0
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If i wanted to sell now, the 15% would be payed back from the sale
Not when you're in negative equity it won't.
This is the problem, and the reason why lots of people are sceptical of these 'easy' ways to buy:
Whenever you wish to move on, you'll have all the usual costs and expenses, plus you'll also have to allow for handing over 15% of the sale price back to the builder. This is a problem when you want to move up as the scheme now acts against you by making this process much harder. The scheme however has fulfuilled it's single purpose - allowing the builder to sell the property that otherwise would not have sold.
For the past year you've effectively only been paying for 85% of your house - you avoided the 15% when you moved in, but you can't avoid it when you sell - it's just been deferred. Think of the 15% as an interest free loan that needs to be repaid when you sell.
The best thing you can do is to save as much as you can and/or overpay to reduce your mortgage. Hopefully by not paying the full mortgage for the year you've already made a good start on your savings, and you should continue this. The saving grace here is at least you have a house - if it were a flat the situation would be much worse.
What size deposit did you use when you purchased the house?0 -
any scheme that isnt a straightforward purchase of 100% of your home means you lose out in some way.
with this one you get a small advantage at purchase time, but a bigger disadvantage at sale time.
perhaps make a very low offer on the 15%?0
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