First Time Buyers/Keyworkers No Deposit

princess_shopoholic

can i just say michael started this thread to recommend something to people in the same situation as him, im pretty sure he didnt expect or deserve to get what can only be described as plain abuse from most of you, if you dont like what hes suggesting maybe you shouldnt read the thread!

Swinstie73

princess_shopoholic wrote: »

can i just say michael started this thread to recommend something to people in the same situation as him, im pretty sure he didnt expect or deserve to get what can only be described as plain abuse from most of you, if you dont like what hes suggesting maybe you shouldnt read the thread!

Well said Princess! :T

tasha-debt

Completely agree Princess, he never asked for people's opinions, he was just being helpful by recommending a good shared ownership scheme.

dozy-debtor

Im with you that Princess,

This forum is here to give people help and advice and not to bully people if you dont agree with their point of view!!

You can be critical without being nasty!

lostinrates

princess_shopoholic wrote: »

can i just say michael started this thread to recommend something to people in the same situation as him, im pretty sure he didnt expect or deserve to get what can only be described as plain abuse from most of you, if you dont like what hes suggesting maybe you shouldnt read the thread!

Whilst I agree there is no need for abuse it IS relevant to pretty much everyone to have an opinion. These schemes have a knock on impact to the rest of the market and affordabilty for other FTBs. I think these are relevant.

laura2481

princess_shopoholic wrote: »

can i just say michael started this thread to recommend something to people in the same situation as him, im pretty sure he didnt expect or deserve to get what can only be described as plain abuse from most of you, if you dont like what hes suggesting maybe you shouldnt read the thread!

:T I always thought this forum was designed for helping people and sharing advice- not abusing people. If you don't agree with someone it is possible to put your opinion across without being abusive, y'know!

Idiophreak

pinkshoes wrote: »

Those who are incapable of saving a deposit shouldn't be buying a house, and are a much higher risk of repossession.

I think there's a clear line here between those that are in "incapable" and those that are "unwilling" to save a deposit.

Those that are *incapable* of saving may have problems.

There are many people, however, myself included, who are simply unwilling/disinclined to save a deposit - and I don't feel *they* are at higher risk of repossession than anyone else.

I, for instance, have taken a 25% shared equity scheme from the builder (so your precious tax payers money is safe. *yawn*). In doing so, the gf and I have got our joint multiplier under 3x, making the place comfortably affordable.

I could have saved up the 25% myself, sure - but I'd have been looking at renting for best part of 10 years to do so. Taking the shared equity, I can use those 10 years to save the deposit more easily (as mortgage is cheaper than rent at the mo..) - only difference is in 10 years time I'll be 10 years into clearing my own mortgage rather than that of some BTL landlord.

I could have borrowed a smaller deposit from a bank, but would have suffered higher interest rates on account of the higher LTV and would have been out of pocket paying interest on both the loan and the mortgage.

Sure, I may well be contributing to higher house prices by doing so - but the alternative is to keep propping up the BTL market, which was a substantial factor in causing the mess in the first place...

Moral of the story? It's all horses for courses, isn't it...Some people will benefit from these schemes, some won't. Don't see it as black and white...

tasha-debt

dozy-debtor wrote: »

You can be critical without being nasty!

Dozy-debtor is right. Everyone is entilted to an opinion but be factual not personal.

Wickedkitten

michael1983l wrote: »

Yes as investments mature at that point.

That's not bad really, and prices could very well have bottomed in that time, meaning that the value of your house will be a lot less but by the same token, you will have less to pay off.

LydiaJ

It seems to me that under certain circumstances the various schemes can be quite a good thing for the individual buyer, for all the reasons Michael has mentioned - paying off one's own mortgage instead of someone else's, and being able to save because of paying a mortgage that's lower than the rent was. It's a gamble that interest rates won't get too high, so that mortgages will stay lower than rents, and it's a negative equity gamble too, depending on how far house prices drop, but it's not obviously a bad thing compared with renting (at least, it doesn't seem obviously bad to me).

However, I'm quite sure that these schemes are definitely a bad thing for the market and the economy, as they just delay the inevitable correction. But there are lots of things in life where what's good for the individual is different from what's good for the many.

ETA Just want to say I agree with all the people complaining about how unpleasant and abusive this thread became - yes a forum is a place to disagree, but let's "be pleasant doing it" as the sticky on the house price debate forum puts it. :beer: