Shared ownership - something to look at if you "own" one

rach_01

zappahey wrote: »

Presumably by "what I'm paying now" you are including the potential investment income from the money you have tied up in your share and all of the maintenance costs that you are paying?

No, I'm not into attempting to make money from property, I'm just happy to be living within my means in a nice house with my family.

The alternative would have been taking out a pricey mortgage that I wouldn't have been able to keep up with repayments in a thoroughly unpleasant area to live or either paying a lot more rent to a private landlord or remaining homeless.

My maintenance costs are low as I live in a fairly new house. My money is 'tied up' no more than anyone else who has paid off their mortgage. If I sold up, move and take out another mortgage I would be in worse position financially (after being in a lot of debt and homeless I won't be making any attempt to move up the property ladder until I can afford it). I'm a firm believer in living within your means.

I can't understand the negativity, unless you've ever been in the awful situation of being homeless I doubt that you understand the importance of finding an affordable, permanent place to live which I am lucky to call my home.

MrsE_2

mummytofour wrote: »

IMHO S/O was a total scam, rip off etc in hind sight I wish I haD moved to a cheaper area where I could have purchased a home without S/H in the first place.

As we live in Surrey thats not an option open to my DD & her DF if they wish to keep their jobs.

A cheaper area is not (by a long shot) within commuting distance.

TRIX1

ztan wrote: »

Shared ownership is not a nightmare, it's a godsend... as long as the people going through the process understand what they are doing.

I'm going shared equity on a freehold property, newbuild, with 10 years to pay back the developers for their 20% share. The easiest way to look at it is that the developers are paying the deposit, and we have 10 years, 5 years of which is interest free to pay them back... but we get the house now.

It's not all doom and gloom.

All this LTV stuff as well... it's only a problem if you're trying to make a quick buck on your house, or NEED to move. If you're okay where you are... then so what?!

So you have gone for an 80/20 split then have you?

haribostarmix

really angers me when i see negative comments about the shared ownership scheme.
i'm currently buying a property through the scheme and it is the only way that i can afford to get back onto the property ladder without having to fork out for a hefty deposit that i simply can't save up for with current rental prices increasing in my area and the price of the mortgage/rent combined is actually cheaper than what it would cost me to rent or buy outright at the moment

vl2588

Precisely! According to one mortgage calculator I can afford to borrow about £83k which wouldn't get me a caravan in this area. I am looking for a job in a cheaper area but can only find temporary contracts so it isn't going well! I feel that paying rent is costing far more than certain S/O or S/E properties would (e.g. Ztan's). What I would like is one where you can definitely buy the remaining percentage later so I don't have to move in order to fully own my home later.

To me it is not a choice between owning 100% v's 50%, it is a choice between renting and starting a mortgage...

poppysarah

vl2588 wrote: »

Precisely! According to one mortgage calculator I can afford to borrow about £83k which wouldn't get me a caravan in this area. I am looking for a job in a cheaper area but can only find temporary contracts so it isn't going well! I feel that paying rent is costing far more than certain S/O or S/E properties would (e.g. Ztan's). What I would like is one where you can definitely buy the remaining percentage later so I don't have to move in order to fully own my home later.

To me it is not a choice between owning 100% v's 50%, it is a choice between renting and starting a mortgage...

You have worked out mortgages are out of your reach (house prices are way too high) yet you seem keen to reinforce their high price by indulging in the silly game of buying half a house.

sleepyj

poppysarah wrote: »

You have worked out mortgages are out of your reach (house prices are way too high) yet you seem keen to reinforce their high price by indulging in the silly game of buying half a house.

Exactly, but weaning people off their property obsession is more difficult than weaning them off heroin. Shared ownership is like getting a fix of methadone.

vl2588

Bit extreme!! You honestly think I am chucking LESS money away renting (not to mention the uncertainty of it) than by choosing a well thought out shared equity scheme or similar?

sleepyj

vl2588 wrote: »

Bit extreme!! You honestly think I am chucking LESS money away renting (not to mention the uncertainty of it) than by choosing a well thought out shared equity scheme or similar?

Yes, because in a rental right now you're getting intrinsic value in insurance from economic instability. In a shared ownership scheme you're tying yourself into an agreement that is akin to a ball and chain if the ship sinks.

vl2588

By that do you mean price drops? Surely you would be worse off in terms of negative equity if you 'owned' 100% (mortgage not outright).