Shared Ownership in E14

lynzpower

Ok
Im looking at SO in e14
so far Ive found this one - east india, blackwall way

http://www.homesandproperty.co.uk/agent.aspx?agentid=2424&opt=prop&pid=598951

loks as if with Swan Housing assocation there was a lot of properties for slae in E14 but they have all been reserved now http://www.swan.org.uk/shared_ownership/latest_properties/

this one but its only 25% which I personally think is a bit low, but each to thier own - which looking at the photos Im guessing its inbetween crisp st market area and devons rd dlr

http://www.hotproperty.co.uk/sales/property_search/details/1037909/2655174.htm?searchString=e14

this sounds nearby there too
http://www.hotproperty.co.uk/sales/property_search/details/1051718/1821222.htm?searchString=e14

you dont say whether you are a key worker? but if you are there would be slightly more available to you eg - this is limehouse though
http://www.hotproperty.co.uk/sales/property_search/details/1051718/1680867.htm?searchString=e14

Bargain_Rzl

izoomzoom wrote:

Just wanted to ask, have you made any improvements to your SO and will you benefit fully from these or, will the HA take their portion ? I have read that this often upsets people (and I understand fully why).

The SO scheme I am currently buying into specifically states that future valuations will be done in two parts, one taking into account the value of home improvements and the other taking into account only the value of the property as it would be without the improvements. One is subtracted from the other to create a sum to which only the owner-tenant has a claim, on top of the value of the basic property. However, as Lynzpower has said, you have to bear in mind the very specific resale market. I imagine that a SO house would have scope for significant home improvement - extensions and so on - but upgrading to luxury fixtures and fittings on my 1-bed flat would most likely not be worth it for the reasons that Lynz has stated!

SeXyDeViL

Thanks guys

Lynz your an absolute diamond for looking up those houses that was very thoughtful :beer:

From the outset it sounds though SO is absolutely no good for expecting a good raise at the time of selling so its effectively pay as you go with maybe a little raise?

That was one of my reasons for buying SO as any house I invest in im hoping to make money, maybe I should rethink SO??

Lynz do you know prices I should be expecting to pay in area's I mentioned earlier? Is £200k realistic?

Thanks

lynzpower

what size are you looking at?

lynzpower

SeXyDeViL wrote:

Thanks guys

Lynz your an absolute diamond for looking up those houses that was very thoughtful :beer:

From the outset it sounds though SO is absolutely no good for expecting a good raise at the time of selling so its effectively pay as you go with maybe a little raise?

That was one of my reasons for buying SO as any house I invest in im hoping to make money, maybe I should rethink SO??
Lynz do you know prices I should be expecting to pay in area's I mentioned earlier? Is £200k realistic?

Thanks

No maybe you need to rethink your approach to the property market.

From a quick phone call to a EA, they told me that they thought that my flat would be worth quite a lot more than waht I paid for it. However, thats irrespective to most, as the money from liquidating this one asset is usually ploughed back in to another property, ie trading up to a bigger place, or better area or similar.

Im selling to rent. We may buy later, we may not. In saying that what Im doing may not be good for everyone. Hell it might not even be a good idea for me!

What you look at when looking at SO is what mortgage you can get. Then you can see if you can negotiate what the share you will buy. I bought 40% of mine, I negotiated from 50% although in saying that I knew they had a bit of trouble shifting this flat due to poor marketing i expect.

lynzpower

http://www.bgvpha.org.uk/module/page-143/ heres another couple

izoomzoom

Izoom

Where is your S O property & did you make value on this?

Do you suggest S O if you are hoping to make money on a property?

Any advice would be appreciated



My SO is in Bedfordshire and no we haven't made anything on our property (in fact we are still trying to buy it).

I can't really say whether you will make money on SO or not. It depends on so many factors.

Also many (including myself) get the impression that SO is 'valued', abeit independently, to be affordable. However, I am purchasing a mid-terrace, and my research showed that the end of terrace sold for exactly the same that I am buying at, and only a few months ago, so maybe not.

Who knows, but it is the only option that we have to get onto the property ladder, and I believe we are going in with our eyes as open as they can be.

noyk

Don't buy, rent. Its just cheaper!

izoomzoom

Sorry but I can't go on paying my LL mortgage any longer.

The bug to own my own property has bitten .... and has been hanging on for dear life for a long long time.

Bargain_Rzl

noyk wrote:

Don't buy, rent. Its just cheaper!

Not necessarily, it depends what you're looking for and what area you're in.

Before I found my new place on a SO scheme, I was aiming to buy on the open market. The sort of place I'd have been looking for (1-bed flat in Zone 2, 3, or possibly 4, in ungentrified areas of South or South-East London) would have set me back about the same amount per month whether buying or renting - about £650-£700 a month.

I'm lodging in a friend's house at the moment and was intending to move out into my own place in the next 6 months anyway, so buying or renting were both possibilities.

As this thread is about shared ownership, I can say that although a lot of people find they end up paying out the same monthly amount on a SO property as they might on a rental or even on an outright purchase, this is not going to be the case for me. I'll be looking at payments of £520 a month, plus a service charge of £75 - a significant saving on either buying or renting. The mortgage element of that £520 is £300, and I'll be looking at making overpayments in the order of £100 a month from the start. The market value of the flat is only about £20k more than what I would have been prepared to pay on the open market, but I've ended up with a 1-bed flat in my first choice of area where I thought I would probably only have been able to afford a studio. I can buy more of the property in future - if there's a market crash, I can buy more of the property at a bargain price; if prices continue to skyrocket, there's nothing forcing me to buy any more than my initial share and once that's paid off I could theoretically continue to live there forever for the price of the rent on the remainder.

The important thing, whether you rent, buy or go for SO, is to find a scheme which is right for YOU. They are all different, some cheaper than others, and it really does depend on your personal circumstances and what your expectations are.

Rzl