Shared ownership/equity is a scam.

pioneer22

For my partner and I we are guaranteed pay rises every year or couple of years so paying off the mortgage won't be a problem.

Idiophreak

pioneer22 wrote: »

For my partner and I we are guaranteed pay rises every year or couple of years so paying off the mortgage won't be a problem.

A lender shouldn't lend you so much that paying the *mortgage* would be a problem anyway. The point is you need to back yourselves to save and repay the loan. That means a) making sure you're going to have high enough income to do this and b) being very disciplined and actually saving something.

brit1234

Today the government launch Newbuy scheme to purchase newbuilds with a 95% deposit. It will be just another failed scheme in the likes of shared ownership and shared equity (homebuy, firstbuy etc).

Newbuy is a con designed to assist the builders not the public. It sells new builds in a falling market at an inflated price with just a 5% deposit. You will be put in instant negative equity and trapped from in the future steps up the ladder.

This scheme is designed to focus on gullible or desperate people who don't realise the consequences. To make it worse the tax payer is exposed to the debts if the properties are repossessed.

http://www.bbc.co.uk/news/uk-politics-17335711

Idiophreak

brit1234 wrote: »

Newbuy is a con designed to assist the builders not the public.

The_BBC wrote:

Critics argue the scheme is just a ruse to help the construction industry.

W00t, the BBC were right!

gazfocus

We are currently looking at shared ownership houses and think they are a good idea in some instances.

The area we live in is quite a fair priced area. There are a number of 2-bed terraced properties for around £60k-£70k, a number of 3-bed terraced properties for around £70k-£110k and a number of small semi's for around £90k-£120k.

The shared ownership properties in our area range from around £60k for a 50% share of a reasonable sized 3-bed semi (pre-owned) to around £70k for a smallish brand new 3-bed semi, so the hike in prices isn't as big as it is in some areas.

One particular house we have our eye on is for sale at just over £60k for a 50% share in a good sized 3-bed semi and is in a nice area. The monthly rent on the other 50% share is £210pcm. This would be much cheaper than the mortgage payments on a £120k mortgage and we wouldn't realistically be able to get a mortgage for a £120k house. Plus it means we'd get better mortgage rates as our deposit would be a bigger %

SecondLegDownIsTheBigOne

gazfocus wrote: »

We are currently looking at shared ownership houses and think they are a good idea in some instances.

You are wrong.

Take this as a friendly warning, you should stay away from these scams.

gazfocus

SecondLegDownIsTheBigOne wrote: »

You are wrong.

Take this as a friendly warning, you should stay away from these scams.

I am not asking for advice on whether or not to go for a shared ownership property, I am simply offering my opinion, the same as everyone else on this thread.

Put simply, if you go into these things having read carefully through the terms & conditions and know exactly what you're going into, it can't bit you in the butt later on.

It's funny how the people that cry and whinge about the mess they're in are always the people that didn't bother to read the terms before buying the property.

We're looking to buy a home that we'll be in for the next 10 years or so. We will continue to save as hard as we are doing now and will staircase at 10% of the property at a time, paying cash until we own 100% of the property. Only then will we consider selling the property.

SecondLegDownIsTheBigOne

Is there no end to the misery caused by theses schemes?

http://frostmagazine.com/2011/04/first-time-buyers-beware-the-share-equity-con/

Idiophreak

SecondLegDownIsTheBigOne wrote: »

Is there no end to the misery caused by theses schemes?

http://frostmagazine.com/2011/04/first-time-buyers-beware-the-share-equity-con/

Yes, an article written by someone who doesn't even know the difference between shared ownership and shared equity...an authoritative source if ever I saw one...

southernsun

Having read through some of the things on shared ownership I am a little suprised and not sure if we got incredibly lucky or if its a case of people only comment on the negatives and people who had positive experience don't.
Me and my fiance bought a 60% share of a new build 2 bed flat on a new estate to get on the property ladder (only way we could afford to and with a baby on the way this made more sense than renting). We paid a 5% deposit and the overall price of the flat was £125,000. Our mortgage was £300 a month and rent/service charges were around £150 over the 3 years. £450 a month for a property we partly owned as apposed to £600 (minimum) rent for a similar flat seemed like good sense to us.
Last year we decided we wanted to move to a house to have a garden for our son and a third bedroom for when we were ready to have another child. We put the flat on the market (price dictated by a surveyor which could not be negotiated by us or a buyer) for £130,000 and sold it a few months later, walking away with nearly £11k, which was a huge chunk of the deposit needed for our new house which we topped up with savings and we are now happily settled in our second home which is all ours.

The only negative experience we had was it took a while to get the buyer approved for the scheme to be able to proceed with the purchase. It was August when he first viewed our flat and we finally completed at the end of January (luckily the people who's house we were buying were happy to wait).

I would by no means recommend the scheme as I think having read the horror stories I would probably have be reluctant to go for shared ownership if I had known this 3 years ago. But for people already in them who may be worried by all that's been said, we found we had a lovely first home which when we out grew it sold for a small profit and with what we had paid on the mortgage gave us a big enough deposit to move on to bigger and better things. Exactly as the scheme is intended to work.

Like I said maybe we got lucky or just happened to have a good housing association but for us it worked out fine.