Shared Ownership

villa2010

Hi Folks,

My partner and I are a young couple and have just bought a SO property.

Are they always a bad purchase. The main reason for this is that we are renting atm. The main advantages of this for us are :-

- The property is in a well sought after village with a good reputation
- We will be paying a lot less money per month that when we are renting.
- We have a garden and loft
- its closer to where I work.
- There are less noisy neighbors hopefully!
- we are getting on to housing market.

We have heard that SO properties are just an excuse to keep housing prices inflated and they are a rip off scam.

When we were getting the mortgage they were valued by an independant valuer on behalf on the bank, and they valued it at the price it was selling this for.

What are your views and why?

villa2010

Any views are all welcome!

Nikel

What percentage did you buy, and what rent.

hostie1985

There will be some people who know alot more about shared ownership that will give you their thoughts - i have looked into it myself - but, to be honest, its not for me.

villa2010

Nikel wrote: »

What percentage did you buy, and what rent.

25% rent is £150 - how come

B_Blank

You are getting on the housing market??? A crash is coming, you will be in negative equity very soon. IF you bought with cash then you probably cost yoruslef alot of money not waiting 2/3 yrs!

villa2010

B_Blank wrote: »

You are getting on the housing market??? A crash is coming, you will be in negative equity very soon. IF you bought with cash then you probably cost yoruslef alot of money not waiting 2/3 yrs!

Can you tell me more about this housing crash:-

- when is it likely
- How bad will it be
- what parts of the country it will hit.

Was this the same one that was predicted 2 years ago!

Running_Horse

If you are living in an expensive area and unlikely to ever buy outright, and if you are buying a forever family home, then it's probably the best option. If you are single and buying a flat just outside London, you might end up with a lemon you can't sell when you need to move onto the next stage of your life. As you have already bought it, I would get on with your life, and ignore the views of others. Why are you asking for confirmation now?

brit1234

villa2010 wrote: »

Can you tell me more about this housing crash:-

- when is it likely
- How bad will it be
- what parts of the country it will hit.

Was this the same one that was predicted 2 years ago!

Its happening now and will continue. 20-40% off properties and hit all over including central London with all its money laundering properties.

Yes it is the same crash from a couple of years ago, it just got stalled with all the stimulus like interest rates cut to 0.5%, shared ownership/equity, stamp duty holiday etc. Prices are falling again even before rates go up and the government isn't funding shared equity/ownership any more.

I too looked at shared ownership a few years ago but decided against. After seeing all the horror stories from my friends and on the web I would never consider shared ownership again.

poppysarah

villa2010 wrote: »

25% rent is £150 - how come

What % do you think your children will aspire to buy?

Graham_Devon

Really depends on the scheme you are on. Been so many now, lumped under the same "shared ownership" umbrella, some schemes better than others.

When people ask if I would reccomend shared ownership, it's hard to answer. My scheme is ok, has a few pitfalls, but nothing like the more recent schemes I have seen, which I seriously couldn't recomend.

Some of the new schemes I have seen have seen the "owner" liable for 100% of any negative equity on the entire 100% of the house, yet only gain positive equity on their share. There was another whereby you could buy another share of the property, however, any falls in prices, would make it difficult for you to buy the other share (as they see you in negative equity on your first share). Therefore if property prices fall, your next share could actually cost you more. If prices go upwards, your rent will go up AND your next share will cost you more.

Not like that with mine. If property prices fall, I can buy another share at the new market price. If prices fall, I'm only responsible for the fall on my share and so on. Same if prices go up.

So it really depends on the T&C's of your scheme as to whether it's any good or not.

Rental part could be a thing to look out for at the moment, as many are linked to RPI, not CPI. The rent will be going up (and way more than wages), and the equity falling.

Also check service agreements, even in houses. My service agreement is the worst part. We are responsible for all those who do not pay the service agreement. And you can guess who breaks fences and ruins the stuff we all have to collectively pay for. Yes, those who don't pay the service agreements (as they have been sent in by the council). Only takes one family out of 30 to be a bad egg and not care, and it can cost the owners hansomely.

Guess who will be responsible for the costs when someones chucked their sofa onto the lawn or the road. Yes, those who pay the service charges. Guess whos responsible for the collection on untaxed vehicles....its certainly not those with untaxed vehiles....its like a free collection of unwanted, and often difficult / costly to get rid of items to them.

ETA: Not sure if this is just my particulare scheme, or plot, but we all have to keep our houses, lawns, gardens etc to a certain standard, which is fine by me. But you will often get some who simply do not care. We ALL then get letters to remind us to keep our lawns cut etc. We can all see exactly who hasn't and couldn't care less. Trouble is, the gardeners (who do the communal areas) will then be sent in to cut the grass if "we" do not meet the terms and conditions. There is also a fee of £35 for each lawn cut specifically stated on the letter added to the service charge.

So in essence, we all end up paying £35 collectively, probably 4 times a year, for the same family, who sit out there under the beer unmbrella thing in the garden, creating havoc every day, never once even considering going to work.

If there was one big downside to shared ownership, for me, this would be it.....totally dependant on your specific plot though I would guess. Ours seem to be 60/40 shared ownership / benefits, council or whatever it is. As I say, it only takes one family to ruin it and cost us all collectively, and that makes you slightly bitter.