Part Buy Shared Ownership

cheeky-virgin

Hello

I am renting a flat in London and paying £650 per month which means i am just giving away my money every month and considering to buy my own flat on shared ownership part buy.

Please advice me on that and would it be good option for me instead of just giving away money to some one else. plus i have got £4000 of saving and earning 25k a year.

Please advice me where to start.

Thanks

Caz3121

you need to save, save and save some more. Shared ownership has some pros and cons, you will still be "giving money away every month" in both rent and in interest on the mortgage. If property prices continue to fall you could also end up with negative equity on top.
There are a number of posts on here on shared ownership, worth reading these

cattie

You're not just giving the money away to somebody else, your paying money to provide a roof over your head & that's a big difference.

With Shared ownership you still need to pay rent & service charges, so you'll still be giving money away as you put it as well as having to pay a mortgage & any additional costs for major works/maintenance that may need doing on the property.

£4k is not enough to think of buying a property & you may not even have the income to be considered for many shared ownership schemes. Best to continue renting & save as much as possible untill the day you can afford a mortgage outright on a property of choice.

gabyjane

Hi we have a SO house and it is one of the best moves i have made! yes you pay rent and mortgage so 'waste' some money but not as much as we were doing..we were paying £400 to a friend for their house and as nice as it was it was small and not ours! we had no deposit when we bought this and have had no outlay as yet as a new build. We pay no service charge either and it is only a bit more than our rent was so were happy! If you want any more info feel free to pm me, there are a few negative threads on here but take no notice!