shared ownership

suki1964

llh189 wrote: »

Macaque - the people who did it badly were the people who couldn't afford to get on the the ladder and made nothing from the last boom.

So given that Suki1964 probably wouldn't have made any money had it not been for their SO place the scheme obviously worked for them.

I have been paying other people's mortgages in the form of BTL for 15 and I am sick of it, being single now and worried about where I might live when I retire in 30 years is enough for me to take a gamble on one of these schemes.

We were never in it to "make money" we needed a bigger home and the Housing association I was housed with refused to give us two bedrooms so we could have the children with us. We had to buy and the DIYSO was the only way.

Even with a 34k mortgage I had sleepless nights. It was to us a HUGE commitment. I had seen my mother lose a lot of money in the previous property crash - it wiped them out of savings and she had to go back to work to keep the roof over their heads. I also had the worry that partner would have an injury that would stop him from earning and that everything would fall at my lap. Thats the only reason we went SO as it was really the only way we knew we could afford to keep everything going if anything major happned.

And yes a property boom happened and so we didnt make big bucks. So what, we were buying a home, not an investment

purple12

I'm really glad I had the opportunity to buy my SO place. OK, I might not have made a killing on the property market, but I have, for the past four years and for the immediate future, lived in a flat that is much nicer than the one I was renting and for a lower cost. It is well within my means and I couldn't afford to buy previously.

I (half) bought the flat because I liked it - I liked where it was - and I didn't like having to move when landlords decided they wanted to sell the flats I had been living in (as that happened to me on other occasions). Of course there are many disadvantages but I wasn't looking for an investment, rather a decent quality home that I could afford and the Shared Ownership allowed me to do that.

llh189

Macaque - maybe then the whole of the housing market should be nationalised and we should all rent from the state!

Seriously though - [roperty as we all know goes in cycles and fore the most part property as a long-term investment will make money for you.

No one forces people to get on to the housing ladder and I of course have sympathy for those who find themselves I difficult times.

I have weighed up the pro and cons of these schemes very seriously and I still feel that managed correctly for some they can be a worth while venture.

Graham_Devon

macaque wrote: »

Say you bought at £68k and sold for £220k. You then had to pay the HA 50% of £190k less £25k.
Gross profit = 220 - (68 + 25) = 127
Money repaid to HA = (190 - 25)/2 = £82.5k
Mortgage interest (assume 6%) = 0.06 X (68/2) X 10 = £20.4k

Net profit = 127 - (82.5 + 20.4) = £24.1k

By my reckoning you managed to make £24k out of property during the biggest boom since Caligular came to collect sea shells on English beaches. How could anyone do that badly?

P.S. I have let you off maintenance and conveyancing costs.

Its not quite as simple as that.

We don't all go round stating that those with mortgages who sold their house for 100k more than they bought it for, actually paid interest on their mortages for 10 years, therefore, actually, only made 50k.

I agree, shared ownership is probably a LANDLORDS wost nightmare, and a lot of the comments about how bad it is, have come from BTL landlords in the past, who see these prime houses as their competition.

What people also seem to look past when looking at SO schemes, is the simple fact that people want homes. They need homes. These are just that, a place to live, NOT an investment.

macaque_2

suki1964 wrote: »

Way 1 looked at it, my 1000 pound investment left me with enough money that I now have a five bedroom,3 bathrooms, three reception detached house with a double garage and 1/4 acre with a 25k mortgage. Not bad seeing my last house was a two up two down terrrace on a council estate

What I dont think you realise that working as clerical support for the health service, wages were and still are notoriously bad. When we took our mortgage my take home was less then 600 a month, when I left the Health Service in 2000 they were still less the a grand a month. Even getting a mortgage back then was nigh on impossible as self certificated mortgages were unheard of and as partner had no books it had to be based on my income only With CSA payments for two children on the old system plus a self employed partner whos wages were never gaurenteed we done well.


Not everyone is greedy. Some of us by a house as a home, not an investment We only bought because the HA who I had a flat with would only give us one bedroom which made having the step kids stay a nightmare

If you have done well, all credit you. However, you cannot cite the particular deal you described as a shining example for others to follow.

suki1964

purple12 wrote: »

I'm really glad I had the opportunity to buy my SO place. OK, I might not have made a killing on the property market, but I have, for the past four years and for the immediate future, lived in a flat that is much nicer than the one I was renting and for a lower cost. It is well within my means and I couldn't afford to buy previously.

I (half) bought the flat because I liked it - I liked where it was - and I didn't like having to move when landlords decided they wanted to sell the flats I had been living in (as that happened to me on other occasions). Of course there are many disadvantages but I wasn't looking for an investment, rather a decent quality home that I could afford and the Shared Ownership allowed me to do that.

And I think thats the crux of it - being able to afford a decent quality of home that you are left to live in in peace and not be at the whim of a landlord.

suki1964

macaque wrote: »

If you have done well, all credit you. However, you cannot cite the particular deal you described as a shining example for others to follow.

And if you read my previous replies on this thread I never have said it was the best way for anyone. Indeed I even offered that perhaps saving another year and buying outright would be the best idea,

I only put my experience up as everyone else was posting that all shared ownerships were over priced and mixed with social housing

Ps - Ill let you off the apology

robin_banks

DIYSO was scrapped a few years ago, tbh it was the only scheme of this ilk that had any real advantages.

geoffky

Shared owners’ typical starting investment has declined from 50 per cent to 40 per cent, with 25 per cent shares now more common.

And evidence suggests that just 3 to 5 per cent of shared owners are able to move on to another property.

http://www.insidehousing.co.uk/story.aspx?storycode=6501770

Graham_Devon

robin_banks wrote: »

DIYSO was scrapped a few years ago, tbh it was the only scheme of this ilk that had any real advantages.

That was a very very good scheme. Is it anything like Homebuy?