Shared ownership/equity is a scam.

brit1234

HappyMJ wrote: »

Can you please look into your crystal ball and tell us how much a property valued at £130,000 will fall down to? You have said "big" falls coming but I'd just like to know how do you define a "big" fall?

Hard to say, dependant on area but roughly 20-30% in the next couple of years. More after.

All these people bragging about their house prices rissing now and that they won't fall are ignoring the end of the stimulas and now the rise of interest rates.

These schemes are complete scams aimed at keeping prices high. I have many friend with shared ownership who have regretted it. Shared equity however will effect people badly later on in years compared to shared ownership. It is more commonly getting known as the shared equity time bomb a bit like altA and Option arm mortgages in the USA. Same scam different country, its just the US are a few years ahead and now suffering from the after effects of such scams.


Shared equity time bomb, tick, tick
Detonations start 2012-2013

Orpheo

HappyMJ wrote: »

I'd just like to know how do you define a "big" fall?

A descent from a position or value to a new position or value that is considerably lower.

I hope that helps, I'm always ready to improve someone's vocabulary.

HappyMJ

brit1234 wrote: »

Hard to say, dependant on area but roughly 20-30% in the next couple of years. More after.

Shared equity time bomb, tick, tick
Detonations start 2012-2013

So you are telling me a property valued/priced at £130,000 today will be worth £91,000 "in the next couple of years". Sorry I'm trying to clarify this exactly. To me that sounds very very cheap. I doubt my property will ever fall that low. I think my property is valued correctly at the moment at around £130,000. I did know that it was way overvalued in 2008 when agents were telling me I'd get at least £150,000 for it and the property over the road (same floorplan) sold for £166,000 in April 2007. That's a 45% fall in prices from peak.. That's rather large.

poppysarah

Orpheo wrote: »

Valued? By whom? An EA?

Ah... You mean priced, not valued.

Assuming the EA is correct (foolish, I know), you should sell. Big falls coming.

Indeed!
A valuation from an EA is not the same as money in the bank.

They are vested interests who often want your house to sell because of the lovely commission they get. They understand that people want to know their house is worth more.

poppysarah

HappyMJ wrote: »

So you are telling me a property valued/priced at £130,000 today will be worth £91,000 "in the next couple of years". .

It might be worth 70.

Depends what happens with the second (or is it third?) wave of credit crunching going on.

Orpheo

HappyMJ wrote: »

So you are telling me a property valued/priced at £130,000 today will be worth £91,000 "in the next couple of years". Sorry I'm trying to clarify this exactly. To me that sounds very very cheap. I doubt my property will ever fall that low. I think my property is valued correctly at the moment at around £130,000. I did know that it was way overvalued in 2008 when agents were telling me I'd get at least £150,000 for it and the property over the road (same floorplan) sold for £166,000 in April 2007. That's a 45% fall in prices from peak.. That's rather large.

Happy days! Cheaper properties for the next generation! We all love it when prices fall, don't we? I mean, who wants high food prices, high energy prices and high petrol prices?

I'm pleased that you now understand what is meant by big falls.

brit1234

HappyMJ wrote: »

I doubt my property will ever fall that low. I think my property is valued correctly at the moment at around £130,000.

It could be correct if it is a 3 bed semi where the average income in your area is around £40K.

However if it is a ftb 1 bed flat where the average ftb wage is about £20k then about £70k is about right.

Loose lending is pretty much dead, as interest rates rise prices will fall faster.

Shared ownership/equity is a scam

Orpheo

I'd like to thank the erudite posters supporting the positive message of this thread. Who knows how many individuals we are saving from this pernicious swindle?

and_another_thing...

Shared Ownership or Shared Equity schemes can benefit the first time buyer. It will benefit me I am sure of it. This is because I didn't stretch myself financially. I bought at the height of the recent credit crunch when prices were lower and I bought a period property in a very popular area of south west London. This area will only see minimal price falls - if any - due to it's proximity to three tube stations, a lovely large common, lots of good quality period homes, good schools, nice cafes, bars, restaurants, etc. All these things will have to miraculously disappear before property prices here fall to the extent you are talking about.
If you buy in a good area at a good price you have to have some advanatge.
I hope house prices continue to fall in the areas where I want to buy my next property - they are falling now - and when I sell my flat I will be able to buy somewhere else outside of London without the help of a SE scheme.

Jimmy_31

HappyMJ wrote: »

Can you please look into your crystal ball and tell us how much a property valued at £130,000 will fall down to? You have said "big" falls coming but I'd just like to know how do you define a "big" fall?

Properties in my area that were valued at 130k are now down to somewhere in the region of the 100k to 110k mark.

I think they will keep falling as most are not selling.