Shared ownership/equity is a scam.

Orpheo

ukcarper wrote: »

It's average flat according to Land Reg you will have to ask them how it is calculated.

Three [blocks of] flats.






Which one is the average?

I think an average price, or even price change can be calculated. But you can't calculate the average flat, calling a flat average is opinion. If the land registry are describing an increase in the average London flat then they are stupid. If, on the other hand they are describing the average price increase of London flats then that might make sense.

However, averages are averages. Allow me to make it very simple for you.

• Chavhole Towers 100,000 (old price) 70,000 (new price) -30,000

• Commuters' Folly 200,000 (old price) 180,000 (new price) -20,000

• Banksters' Suites 1,000,000 (old price) 1,150,000 (new price) +150,000

Mean change in price is +£33,000.
Median change in price is -£30,000.

Allow me to illustrate with a meanlingless chart:

ukcarper

Orpheo wrote: »

Three [blocks of] flats.






Which one is the average?

I think an average price, or even price change can be calculated. But you can't calculate the average flat, calling a flat average is opinion. If the land registry are describing an increase in the average London flat then they are stupid. If, on the other hand they are describing the average price increase of London flats then that might make sense.

However, averages are averages. Allow me to make it very simple for you.

• Chavhole Towers 100,000 (old price) 70,000 (new price) -30,000

• Commuters' Folly 200,000 (old price) 180,000 (new price) -20,000

• Banksters' Suites 1,000,000 (old price) 1,150,000 (new price) +150,000

Mean change in price is +£33,000.
Median change in price is -£30,000.

Allow me to illustrate with a meanlingless chart:

OK if your being pedantic I would imagine it’s the average price of a flat not the average flat.

But you implied his flat had not increased in value without knowing anything about it but some property has.

Orpheo

ukcarper wrote: »

OK if your being pedantic I would imagine it’s the average price of a flat not the average flat.

If by pedantic you mean with attention to detail then explain why it shouldn't be so when dealing with math such as, I don't know, quoting averages.

ukcarper wrote: »

But you implied his flat had not increased in value without knowing anything about it but some property has.

No. You are the one who moved from the specific to the general:

According to Land Reg the average London flat has increased by £35k since Feb 2009.

ukcarper

Orpheo wrote: »

The EAs certainly figured out how to win your business. Boast after you have sold for £40K more. Otherwise you may end up with egg on your face.

What exactly doesn’t that mean then?

Dave101t

shared ownership....the endowment mortgage, the PPI, the con of the 21st century!

I wonder if in 15 years we will hear "have you been involved in a shared ownership scheme? call our solicitors to get the compensation you deserve!"

Orpheo

ukcarper wrote: »

What exactly doesn’t that mean then?

It does mean if they haven't sold it then they haven't made a profit. That's a fact.

poppysarah

ukcarper wrote: »

What exactly doesn’t that mean then?

an EA value is NOT the same as money in the bank.

Many EAs are being wildly optimistic about prices to get your house on the market.

Install property bee and see which of your local EA have lowered prices recently.

Egg_custard_2

PasturesNew wrote: »

I happen to remember how much flats were round the corner from me in 1997... they were £26k. Today the same flat is £125k.

In 1997 a single person, working full-time in retail, or as an office admin person could have bought one with a £9k wage and 3x earnings. Today they'd need to be earning £25k and borrowing 5x earnings. In my town, I suspect those who were earning £9k in retail are now earning £12k for the same job... not £25k.

Those flats reached £145-150k at the peak, although the last one to sell did sell at £115k. But 'unaffordable' to an average single person .... the type of person who, in this town, in 1997, could have bought one.

I was going by my pittance of £7k salary when I first bought, and house prices haven't increased quite as much as that where I've lived. It's not as straight forward as comparing gross salary to house values because BR income tax was 23% back then and interest rates around 6-7% so that affected affordability... I appreciate what I said may not ring true for many areas but I was talking from my own experience.

ukcarper

poppysarah wrote: »

an EA value is NOT the same as money in the bank.

Many EAs are being wildly optimistic about prices to get your house on the market.

Install property bee and see which of your local EA have lowered prices recently.

I know that but without knowing the property you do not know if the valuation is high low or indifferent. Lots of property has sold for higher now than in 2009. I suppose the buyer is lucky he bought then and not a year or two earlier.

and_another_thing...

ukcarper wrote: »

I know that but without knowing the property you do not know if the valuation is high low or indifferent. Lots of property has sold for higher now than in 2009. I suppose the buyer is lucky he bought then and not a year or two earlier.

I will get slated for this...!!! but I really don't think the EAs over valued my flat the other week. When I bought I did get a real bargain - a run down period conversion but I enlisted friends and family to help with the decoration, plumbing, etc. Having just had a look on rightmove, flats similar to mine in my area are selling at asking prices of over £70K what I paid in 09. Admitedly they are in slightly more desirable roads but just a few roads from where I live. Note: I am not saying that the flats for sale round here have risen in 'value' by 70K since 2009 but that they are on sale at 70K more than I paid for my flat in 2009. So I actually think a profit of £40K seems pretty plausible in this part of London. I have changed my mind aboout selling anytime soon, anyway, but it was good to get an idea of what I could put my flat on the market for.

And I wasn't boasting just highlighting the fact that not ALL SE schemes are a scam for the buyer. As I have said before you need to know exactly what you are getting yourself into and buy wisely. I am fully aware that valuations vary greatly, that a property is only worth what someone is willing to pay for it and that this time next year I may even be in negative equity.