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Places for people - any experience?
Options
nementai
Posts: 164 Forumite
We've been looking to buy a house for a while, and have a good 10% deposit saved.
I've just seen a house come on the market under the 'places for people' scheme at 50% ownership, for £73k, £185pmth rent. It's in exactly the area we want, the estate is very nice, close to the main city rail station (so always desirable) and the house is nice and pretty new (I'd guess 5 years old?). It certainly ticks all our boxes.
At that price, we'd have a 20% deposit and could cut 2% off our interest rates, and so save ourselves around the rent price in interest every month.
We'd then get a little while to save up a chunk to use to buy the other half in the next year or 2 (we could save almost £1k a month after mortgage and rent payments).
OR, we could stretch ourselves now, negotiate hard, and maybe buy the whole thing.
Option 1 is tempting, option 2 seems wiser, but it'll hurt financially.
I don't know much about shared ownership, it's never something we'd considered until now. Any thoughts?
I've just seen a house come on the market under the 'places for people' scheme at 50% ownership, for £73k, £185pmth rent. It's in exactly the area we want, the estate is very nice, close to the main city rail station (so always desirable) and the house is nice and pretty new (I'd guess 5 years old?). It certainly ticks all our boxes.
At that price, we'd have a 20% deposit and could cut 2% off our interest rates, and so save ourselves around the rent price in interest every month.
We'd then get a little while to save up a chunk to use to buy the other half in the next year or 2 (we could save almost £1k a month after mortgage and rent payments).
OR, we could stretch ourselves now, negotiate hard, and maybe buy the whole thing.
Option 1 is tempting, option 2 seems wiser, but it'll hurt financially.
I don't know much about shared ownership, it's never something we'd considered until now. Any thoughts?
When we choose not to focus on what is missing from our lives but are grateful for the abundance that's present....we experience heaven on earth. Sarah Ban Breathnach
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Comments
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IMO shared ownership is a con serving only to keep prices artificially high. They are riddled with downsides such as paying for repairs on 100% of property, not being able to sublet if you need to, not being able to sell easily, some leave you much worse off financially in terms of rent increases. etc
I'd have a read through this forum - there's been some real shared ownership people posting about serious issues they have found with the schemes.0 -
From what I've seen, the issues seem to be with people who aren't going to 100% for a long time.
We're prepared for 100% repairs, as we're looking to buy anyway, and would definately be buying off the remaining 50% within 18 months. We could afford it now if it wasn't for the deposit. With 12-18 months of hard saving, we'd have enough for 20% of the whole house asking price and save ourselves a fortune in interest.
At £146000 for 100% it's priced at around what comprable houses in that are are selling for now, so I don't feel it's overpriced at all.
As for selling, we're looking for a home for 5-10 years anyway.
I don't know if I've read the expereriences incorrectly, but none of their issues seem to apply to our situation.When we choose not to focus on what is missing from our lives but are grateful for the abundance that's present....we experience heaven on earth. Sarah Ban Breathnach0
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