Shared ownership scams

Chris2685

Yet again I have seen some more shared ownership scams.

2 Bedroom Terraced house in South East (Iver Heath, near Slough)
25% valued at 89,950 (100%=£359800)


2 Bedroom Terraced bungalow in South East (Iver Heath, near Slough)
50% valued at 150,000 (100%=£300,000)




Now, looking at houses nearby and the average prices, they are no where near this price. So why is it that just because it is 'shared equity' the price seems to be justified to be higher?
Similar properties nearby seem to be valued at around £250,000 - £300,000 at the VERY top end for a 2 bed.

This map shows more properties around there.
Just over the back of those 2, you can pick up a 3 bed semi for 335k, and to be fair it looks at least 50% bigger, if not more, than the 2 bed's do.

So, any ideas WHY the price on these 2 are so much higher than neighbouring properties, or is it just that they're shared equity, more people can "afford" them?


Hope this is an interesting topic for you to consider after your weekend breaks

Doctor_Gloom

Chris2685 wrote: »

So, any ideas WHY the price on these 2 are so much higher than neighbouring properties, or is it just that they're shared equity, more people can "afford" them?

Shared 'ownership' is a scam from start to finish. You pay too much for something you don't even own. And then trying to sell your 'share' is yet another nightmare.

1984ReturnsForReal_2

Are these real houses?

Are these real prices?


F me...........

Chris2685

They are indeed. I might ring them up later to just double check that they have not made a mistake in the ads... It just seems insane.

Hsarcgib

For those on small income or unemployed the Government will pay there rent on the rent part of it and the mortgage interest on the mortgage part of it.

This is another way that house prices are propped up.

Chris2685

I better lose my job and "buy one" then.

Graham_Devon

The first one....if there was a mistake, it would probably be on the 25% part. 25% is very rare, though still around with re-sales, so maybe true.

It's normally around 40%, which would bring it into line with prices in the area.

However, may just be priced amazingly high!

StevieJ

Do you have to pay rent on these?

brit1234

The percentage you bought got smaller the longer the boom went on (50%-15%)

They are just a con to keep prices high and allow people to say they are providing affordable homes when they are not.

Scam, scam :mad:

1984ReturnsForReal_2

StevieJ wrote: »

Do you have to pay rent on these?

Yes.

So you may as well just buy a bigger house for the same money & save yourself the rent....

Overpriced or what??:eek:

PasturesNew

Somebody I know moved onto an estate where there were some SO houses. They said they'd been talking to one of the new occupiers of an SO house - a couple. They had bought 25% at about £55-60k, it was a 2-bed terrace. I thought they were mad as they could have bought from a selection of 2-3 bed houses within 2 miles that were under £125k.

I just did a search for 2-bed houses under £100k in that area and there was one at £85k - it was old, but good to move into... so for just £25k more they could have owned a whole place. My 'argument' about these SO schemes is that to get onto them you have to demonstrate that you can't buy a whole house locally - well, in my opinion, you can a lot of the time.

They were a working couple. If we assume they both earn £15k and if we assume you can borrow 4x joint, then they could have borrowed £120k. Looking at 2 bed houses at £125k or less (there'd be a deposit they'd have and they'd offer less, say) they'd have had a choice of 93 2-bed houses within a 3 mile radius. Both of them worked a few miles away from their house, so location wasn't an issue. Of the 93 2-bed houses available:
- 5 were retirement properties
- 50 were mobile homes

Within 2 miles I even found a 2-bed house at £75k that upon closer RM inspection looks like it just needs a splash of paint and a carpet.

By the time I got to £95k there's even a house I have actually spent some time mulling over myself - it's quite well placed and cheap as chips. It's also already been done up, so fresh and clean etc.

I just don't understand why people who have choices opt for a part of a house when for just a few quid more they could have a whole one. Surely SO best serves people who could genuinely never ever afford their own whole house and were just securing themselves some tenure. (e.g. singles)

By the time you get to £125k there are a lot of interesting, characterful houses with lovely features .... and no 'work' needed.