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

Wickedkitten

gabyjane wrote: »

In terms of renting i have just done a very quick calculation.

Our old rented house was £400 per month (very cheap for where we live as a friends) so:

£400 a month over 3 years (time we lived there) = £14,400

Our current house is £150 per month so:

£150 a month over 3 years (time we have lived here give or take a few weeks)
= £5,400

There is a considerable difference in totals and it's going towards our house at the end of the day not my friends. As we buy more of the house (if we do) the rent decreases. IF we just buy our % we will pay around that figure each month which i guarantee is less than a rented house here.

May have missed something if I have can someone let me know?!

Is the rent portion of your house tied in to the RPI? Mind the rent isn't going to your house, it's going to a HA

poppysarah

gabyjane wrote: »

Our current house is £150 per month so:
May have missed something if I have can someone let me know?!

How much is the mortgage & interest?
Do you pay for repairs on the rented half too?

And wouldn't you rather have bought a whole house?

gabyjane

Wickedkitten wrote: »

Is the rent portion of your house tied in to the RPI? Mind the rent isn't going to your house, it's going to a HA

Sorry being blonde what is RPI? yes it goes to the HA but better than a landlord for security..unless we do something wring..or don't pay them?!

gabyjane

poppysarah wrote: »

How much is the mortgage & interest?
Do you pay for repairs on the rented half too?

And wouldn't you rather have bought a whole house?

What per month or total for the house? it has dropped a lot come Sept due to the equity we now have so is better than it was. As for buying a whole house.. as if where we live! like i said further up property's are so so expensive where we live so there has never been any hope. The most we could get last time we tried before we moved in here was just over £100k, for starters there were very few propertys that were any good or ones i would want them to pay us to buy it!
My job is important too so we had to have the right house. The mortgage back then would have been around £800+ and a huge deposit..we would still be saving up for now and be paying out far more than we do now each month..plus this is a perfect house for us so we feel so much better we never went down that route. Again this is our house no one can tell us to move out can they? the fact the bank and HA still on some of it is a technicality on paper like lots of other peoples 'whole' houses are..how many people 'own' their houses and ever will do in this day and age?

Wickedkitten

gabyjane wrote: »

Sorry being blonde what is RPI? yes it goes to the HA but better than a landlord for security..unless we do :money:something wring..or don't pay them?!

Retail Price Index, a lot of Shared Ownership schemes are tied to it, usually at RPI +1%, and the RPI just shot to up to 4.8% which means a lot of people on SO have seen the rent portion of the SO skyrocket. to 5.8% in the past month.

gabyjane

Wickedkitten wrote: »

Retail Price Index, a lot of Shared Ownership schemes are tied to it, usually at RPI +1%, and the RPI just shot to up to 4.8% which means a lot of people on SO have seen the rent portion of the SO skyrocket. to 5.8% in the past month.

Ah I'm not sure but don't think so..ours goes up every year around the time we moved in so not long till we find out! Last year it went up about £3.

rach_01

All I can say is I've been living in my S/O house for nearly 4 years and I'm quite happy paying £41.50 a week for my rent (originally 50% mortgage, 50% rent, mortgage paid off in full Dec 2009). I had no problem buying and the vendors had no problem selling it to me. Unsure about 'restrictions' previous posters have mentioned on selling, but as I'm not planning on moving it doesn't matter for now. It took me 6 weeks from viewing the house to having the keys in my hand. If anyone can find me a similar rented property for less rent than I'm paying now then go ahead! The original 50% mortgage 50% rent was cheaper than paying 100% rent to a private landlord and at the time I moved in I was unable to get a 'full' mortgage on a similar sized property. S/O has been a blessing for me, it gave my daughter and I our home.

However, the only thing I do find annoying about S/O is being responsible for all the bits and pieces that can (and frequently do) go wrong with homes - leaky toilets, broken central heating boilers etc etc. That's when I think 'What am I paying my rent for?' If you were renting from a private landlord hopefully they'd sort this sort of problem out at no cost to the tennant.

Everyones financial and personal circumstances are different, so I'd just say look into everything, make sure you can afford it and go with what's best for you.

gabyjane

rach_01 wrote: »

All I can say is I've been living in my S/O house for nearly 4 years and I'm quite happy paying £41.50 a week for my rent (originally 50% mortgage, 50% rent, mortgage paid off in full Dec 2009). I had no problem buying and the vendors had no problem selling it to me. Unsure about 'restrictions' previous posters have mentioned on selling, but as I'm not planning on moving it doesn't matter for now. It took me 6 weeks from viewing the house to having the keys in my hand. If anyone can find me a similar rented property for less rent than I'm paying now then go ahead! The original 50% mortgage 50% rent was cheaper than paying 100% rent to a private landlord and at the time I moved in I was unable to get a 'full' mortgage on a similar sized property. S/O has been a blessing for me, it gave my daughter and I our home.

However, the only thing I do find annoying about S/O is being responsible for all the bits and pieces that can (and frequently do) go wrong with homes - leaky toilets, broken central heating boilers etc etc. That's when I think 'What am I paying my rent for?' If you were renting from a private landlord hopefully they'd sort this sort of problem out at no cost to the tennant.

Everyones financial and personal circumstances are different, so I'd just say look into everything, make sure you can afford it and go with what's best for you.

Good reply! I agree in a way with the costs of fixing things up but i have never looked at it from that aspect as see it as why we get a cheaper property? we are lucky and bought a new house so as yet we have no outlays which is great. One we looked at needed a new kitchen, new bathroom, carpets, decoration etc and although we may have still purchased it we would still be trying to get a lot of it done now which wouldn't be much fun!
Glad you are enjoying your house anyway nice to hear positive stories for once!

zappahey

rach_01 wrote: »

If anyone can find me a similar rented property for less rent than I'm paying now then go ahead!

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?

mummytofour

poppysarah wrote: »

I reckon they've been propping prices up for far too long.

Would you ever have dreamed of when you held you new baby in your arms that one day they could buy half a house? Of course not - it's a massive swindle that nulabour encouraged.

Actually, I purchased a re-sale DIY shared ownership in 1999. The scheme was like home buy where you choose your own home and the HA own half. As mine was a re-sale it had been purchased via DIYSO in 1994- which was WAY before new labour.

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.