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

robin_banks

MrsE wrote: »

That I think is the crux of it, rental is dead money.

It's rare that I quote Widow Twanky - "Oh not it isn't".

getmore4less

SO is not the real issue

MrsE wrote: »

They are only on about 20 each at the moment.
Don't think that will get them much.
I guess you earn a bit more.

So low end of the pay scales but room to move up,

MrsE wrote: »

She & we have/are funding it, she hasn't got a loan.

Perhaps no one should bother with degrees then & we should all rent & line the pockets of a select land owning few & "know our places guvnor";)

Subsidised by parent

MrsE wrote: »

She has one. NHS corporate:D
She's doing the degree part time;)

to do part time education.

She cannot/as not been meeting her current commitments without handouts and you are encouraging taking on even more.

As pointed out above I think she needs to wait before tieing herself down to ownership to keep her flexabilit to progress the career.

mrmalawi

thanks for the comments, we are in a similar situation of my 4 year old having had 7 houses so far and we just want one that we can't be turfed out of that lets us settle and means we won't have to change schools again.

We are in the sw and so house prices here are inflated, not by people going through the SO route but because every other house is only occupied for 2 months a year as its a second home, the average for a 2 bedroom house in our village is 400k!!! I certainly don't think it's outrageous that we would like 1 home?

with regard to the finances too as was pointed out with rental and mortgage interest we still end up with £30k of dead money but what it does mean is that that is 10k less than renting and we have additional security. i don't want to make any money through housing but it does appear that the reasons for not doing SO are if you can afford alternatives or want to make money???

woody01

MrsE wrote: »

That I think is the crux of it, rental is dead money.

That's the whole point though.
SO is killing your money faster than renting ever could.

Not only do you not own your house if you are on the SO scheme, but you also have to pay for the repair bills.

I said before, SO is another way of renting with none of the renting legalities in your favour.

woody01

I love the fact I can come back and sleep at night knowing it is our house

It's great you think like that, but it simply isn't the case, and most probably never will be.
Overpaying the mortgage is a good idea....but:
1. You may not be allowed to sell the property if you don't own 100%
2. You may not get a buyer as there are strict limitations if you are allowed to sell
3. What if you cannot gert a mortgage for the rest even if you are allowed to buy more of it
4. What if you need to move out of the area

The best way to describe an SO house is a 'Guaranteed Rental Property For Life'.

I hope you can do all you plan , but just be very careful

2 bedroom house in our village is 400k

You sure?
What the postcode area, as that is very high.

Doctor_Gloom

gabyjane wrote: »

But any of that 'rental money' is surely dead money whether it is S/O or not? .

So are the interest payments on your mortgage. Only the small capital repayments on the mortgage are any sort of investment. And who is to say that that investment would fare better than in say the stockmarket.

gabyjane

poppysarah wrote: »

No, the first post is about the law as it stands for shared "ownership" ...

Ah the 'law' ?! sorry I see now!

gabyjane

mrmalawi wrote: »

thanks for the comments, we are in a similar situation of my 4 year old having had 7 houses so far and we just want one that we can't be turfed out of that lets us settle and means we won't have to change schools again.

We are in the sw and so house prices here are inflated, not by people going through the SO route but because every other house is only occupied for 2 months a year as its a second home, the average for a 2 bedroom house in our village is 400k!!! I certainly don't think it's outrageous that we would like 1 home?

with regard to the finances too as was pointed out with rental and mortgage interest we still end up with £30k of dead money but what it does mean is that that is 10k less than renting and we have additional security. i don't want to make any money through housing but it does appear that the reasons for not doing SO are if you can afford alternatives or want to make money???

Fully agree with that as we are in the south too and it is annoying most of the houses are occupied half the year if that..if only we could have the luxury! We like you only want one house!
Again never in it for the investment so the prices can do what they want!

gabyjane

woody01 wrote: »

That's the whole point though.
SO is killing your money faster than renting ever could.

Not only do you not own your house if you are on the SO scheme, but you also have to pay for the repair bills.

I said before, SO is another way of renting with none of the renting legalities in your favour.

Disagree! when we rented admittedly the boiler needed servicing but other than that we did everything else in terms of decorating etc as we got cheaper rent..IF we had to move we would be forking out around £600+ a month for a house..again more than double of what our total is for this house which is bigger than any we have rented. The propertys we have rented we havent been able to hang pictures or decorate in some and if god forbid we dropped/marked anything we would lose our deposit..if we do this here it is just our problem which i far prefer.

We bought a new build and in 3 years have had the bolier serviced £80 and that's literally it..other than us newly furnishing it which is our choice to do we have been quids in as no outlay.

gabyjane

woody01 wrote: »

It's great you think like that, but it simply isn't the case, and most probably never will be.
Overpaying the mortgage is a good idea....but:
1. You may not be allowed to sell the property if you don't own 100%
2. You may not get a buyer as there are strict limitations if you are allowed to sell
3. What if you cannot gert a mortgage for the rest even if you are allowed to buy more of it
4. What if you need to move out of the area

The best way to describe an SO house is a 'Guaranteed Rental Property For Life'.

I hope you can do all you plan , but just be very careful


You sure?
What the postcode area, as that is very high.

Ok no 1: We are allowed to sell the property at any stage..whether it sells is another matter. I am seeing how next door goes when it goes up as a guide not that it matters! We are allowed to rent with prior agreement but won't unless we split up maybe?!..my friend does this up the rd and it wasn't a prob with the HO.

No 2: The list is as it has always been very very long so have no doubt it would be bought quickly as a nice house for where we live and surroundings etc.

No 3: We had a far less income when we bought it to what we have now, the mortgage is based on dh's wages alone which is great as even if he loses his job we can easily afford it on mine, something we thought about when we bought it. IF one of loses our jobs like i said we will use each others income IF we both do we have insurance to cover us and savings in place..again thought about before we bought.

No 4: We won't want to move and really can't see why we would need to so not a thought for us.

As for the quote that was not me so can't comment..well i can but i won't!!