We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Shared Ownership
Comments
-
-
HAHAHHA, great post, prices are sliding still hamish, and the crash shouldnt of happened yet! The market was in free fall untill the supports of low IR, and massive government stimulus were put in place. This halted the decline. By the end of the year these stimuli will begin to be removed and the house price free fall will be back on with a vengance! You really dont know alot about anything if you cant see this! Its so obvious!HAMISH_MCTAVISH wrote: »Yes.
It's over.
It lasted from late 07 until early 09, and prices have since risen by around 10%, then fell back a couple of percent, and are now rising again. We are in the post-crash bumping-along-the-bottom phase.
Sure, you'll see minor fluctuations both up and down for the next couple of years, but nothing dramatic either way.I am not a financial expert, and the post above is merely my opinion.:j0 -
Shared ownership is not a scam, but it totally depends on your personal circumstances and what's right for you. Two examples:
1. Young married couple with 1 toddler buy a 50% share of a new build 2 bed ground floor flat in a small very desirable village in Cornwall in 2007.
Result = not good. Why? They can't even think about having another child as new build flats are so tiny, they won't get back what they paid for the share if they try to sell now because values have dropped so much. Because they stretched to buy a big share to start with, they haven't got the money to staircase at the current (lower) valuation. They're stuck.
2. Young married couple with 1 toddler buy a 25% share of a new build 2 bedroom house in a small very desirable village in Cornwall in 2007.
Result = pretty good. Why? They have a house they can live in for many years, they have room to have another child because 2 bed houses are much better sized than flats. Because they only bought a small initial share at the expensive 2007 price, they probably have some financial leeway to staircase and get another chunk at the current (lower) values. Houses always hold their value better than flats.
As another posted said, if it's your "forever" house - or even your house for the next 10 years, you'll probably feel you made the right choice.
Shared ownership is not right for everyone but it can be for some. If, for example, you're in private rented and can't afford to buy outright in the village you grew up in (very common scenario in the south west where 2nd homes and low wages are such an issue) then the opportunity to buy with SO could be good for you.
I think something people forgot in the "boom" was that the reason for buying a house is so you can have a home. There were so many who thought they could buy shared ownership and make a profit by selling the share later on, and they're not going to be happy bunnies now.Marsh Samphire0 -
The market was in free fall untill the supports of low IR, and massive government stimulus were put in place. This halted the decline.
Really....
And yet Ireland and the USA also had the support of low IR and massive government stimulus.
But their markets continued to fall.... and fall..... and fall some more.
Gosh, I wonder if there could possibly be, you know, some other teeny tiny little difference?
Housing vacancy rates:
Ireland: 17%
USA: 11%
UK: 3%Its so obvious!
It certainly is....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Really....
And yet Ireland and the USA also had the support of low IR and massive government stimulus.
But their markets continued to fall.... and fall..... and fall some more.
The US market was 18 months ahead of us in falls, the low interest rates happened internationally at the same time. Then the US market picked up however the Option arm and Alt A mortgages then went off sending it down again.
The UK market is still falling and the size of the falls will increase. Anyone who thinks it won't with the interest rate rises and austerity cuts is deluded. After all the housing market is extremely overvalued and there isn't the irresponsible lending now too keep it propped up.
Hence all the vested interests complaining about lack of lending.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
0 -
poppysarah wrote: »What % do you think your children will aspire to buy?
LOL - Did not know we had Children...!
Thats the whole point this is a good route to move on to the housing market and up the ladder!0 -
The US market was 18 months ahead of us in falls, the low interest rates happened internationally at the same time. Then the US market picked up however the Option arm and Alt A mortgages then went off sending it down again.
The UK market is still falling and the size of the falls will increase. Anyone who thinks it won't with the interest rate rises and austerity cuts is deluded. After all the housing market is extremely overvalued and there isn't the irresponsible lending now too keep it propped up.
Hence all the vested interests complaining about lack of lending.
I dont understand as I am sure that I have heard on the radio that some house prices in areas are increasing not by a lot - but still...!
Is this false...! have you got any good sources...?0 -
Marsh_Samphire wrote: »Shared ownership is not a scam, but it totally depends on your personal circumstances and what's right for you. Two examples:
1. Young married couple with 1 toddler buy a 50% share of a new build 2 bed ground floor flat in a small very desirable village in Cornwall in 2007.
Result = not good. Why? They can't even think about having another child as new build flats are so tiny, they won't get back what they paid for the share if they try to sell now because values have dropped so much. Because they stretched to buy a big share to start with, they haven't got the money to staircase at the current (lower) valuation. They're stuck.
2. Young married couple with 1 toddler buy a 25% share of a new build 2 bedroom house in a small very desirable village in Cornwall in 2007.
Result = pretty good. Why? They have a house they can live in for many years, they have room to have another child because 2 bed houses are much better sized than flats. Because they only bought a small initial share at the expensive 2007 price, they probably have some financial leeway to staircase and get another chunk at the current (lower) values. Houses always hold their value better than flats.
As another posted said, if it's your "forever" house - or even your house for the next 10 years, you'll probably feel you made the right choice.
Shared ownership is not right for everyone but it can be for some. If, for example, you're in private rented and can't afford to buy outright in the village you grew up in (very common scenario in the south west where 2nd homes and low wages are such an issue) then the opportunity to buy with SO could be good for you.
I think something people forgot in the "boom" was that the reason for buying a house is so you can have a home. There were so many who thought they could buy shared ownership and make a profit by selling the share later on, and they're not going to be happy bunnies now.
An amazing post - thanks.
How about a bugalow is that classed as a house to and does it hold its prices better that a flat.0 -
Where we are (SW- Wilts), bungalows have held their price and have always been very pricey over the last few years.
I haven't heard of SO but we are in the shared ownership house, 50%. The price we pay for mortage and rent is a lot less then if we were to privately rent the same house (it is 3 bedroom).
There were few reasons as to why we decided it was best option for us:
we will only live here for 10-15 years and s/o houses sell quicker (although not easier for the buyer)
we only have 1 child (and that will not change)
we could get on property ladder
we could not afford 100% of mortage (although we can now but do not want to)
did not want to waste money on renting and not having anything to our name in years to come
We have never had any problems, with the house or the agency or the people around us (although there are only 4 houses on this scheme around us). Can't think of any bad points really but from reading the other posts, there clearly are some really bad schemes out there.0 -
Shared ownerships schemes are about to be banned in Scotland - you might expect that this is because it is artificially keeping prices high but seems it's more to do with builders lending money and not being properly regulated.
I'd generally avoid them like the plague - I'm suspicious that this kind of scheme gets popular at the worst time - before a real market adjustment down. After all, when do most people need these schemes - when house prices have moved beyond the reach of regular buyers. But I suppose it depends on your circumstances.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards