Shared ownership/equity is a scam.

and_another_thing...

The titlle of this thread should be 'IS shared equity / ownership a scam?' and then people would be able to post their experiences for others to read and they can then make their own mind up.

Too many people are posting negative comments which do not apply to all schemes.

'if you fall behind in your rent for two months you can lose all the equity you've put into the property' may apply only to ONE scheme and there are many, many different schemes out there.

Of course you need to read and understand the T&Cs of the scheme you are interested in. It simply isn't representative or helpful cherry picking the most negative aspects of a handfull of schemes and posting them on here.

You wouldn't form an opinion on a political party, for instance, from only the opinions you read on a forum, would you? If you are basing your decision whether or not to buy a SE/SO property on what you have read here then you are being very short sighted indeed!

-Read and understand the T&Cs and work out how if you can afford any rises in rates in the future.
-Try to find a scheme where you can buy a property on the open market. That way you can buy a period property or a purpose built flat/house which has been valued by an EA and not a developer/HA. This way you are less likely to pay over the odds. Service charges are likely to be more manageable too.
-Fully understand the costs involved in 'staircasing' - buying further shares in the future. It may only make financial sense to purchase a large % each time.
-Fully understand the process you need to go through in order to sell. If your scheme allows you to sell on the open market to anyone then it's a good scheme. Best to avoid the schemes that only alllow you to sell to other people buying through the same/other SO/SE schemes as this seriously limits you and you will have to go with their own valaution.

In some parts of the country SO/SE is your only option and to have to read all these negative comments can only be depressing! Good luck!!

Orpheo

Shared equity and shared ownership schemes are scams. They are defended by VIs and by the hapless fools that buy into them.

Always-Hopeful_2

and_another_thing... wrote: »

So what's the alternative for people in areas where property prices are greatly inflated? Where rents work out to be higher than a mortgage on a SE property? Just don't live there? Move out of London and pay £2000+ per year on commuting?
The fact is that house prices are still out of reach of most people in some areas in London. I earn above the average London salary (in excess of 40K) but I can not afford to buy anywhere decent in the area where I work. I want a good quality of life without the daily strain and stress of a long commute. I want to live in a decent home in a decent area and for now the only way to do this is through a SE scheme.
I didn't enter into this as a means just to get onto the housing ladder or to make a profit. I just wanted somewhere nice to live!!! If things all go pear-shaped in a few years then I'll cut my losses and buy/rent soemwhere else. Why does it anger so many that some people are trying to present another side to the argument?

We have the same problem, we live on the outskirts of the New Forest, have a combined income of £50,000 and still cant afford to buy,

Our rent is £1,000 per month, so we did look into Shared ownership. as the combined mortgage and rent would be lower. and of course we would have the luxury of being able to decorate how we want, put pictures up and have pets....

But there are so many terrible stories. I just dont know what to do.....

shark99

and_another_thing... wrote: »

Of course you need to read and understand the T&Cs of the scheme you are interested in.

That's true - but the worrying thing is that many solicitors don't seem to understand all the implications of how the shared ownership schemes are structured, which makes one wonder how anyone else has a chance ...

Orpheo

Always-Hopeful wrote: »

We have the same problem, we live on the outskirts of the New Forest, have a combined income of £50,000 and still cant afford to buy,

Our rent is £1,000 per month, so we did look into Shared ownership. as the combined mortgage and rent would be lower. and of course we would have the luxury of being able to decorate how we want, put pictures up and have pets....

But there are so many terrible stories. I just dont know what to do.....

If you buy shared ownership then you perpetuate the problem which is overpriced houses.

If I hadn't bought my first house in 1998 I would not have the money in the bank now to get back on to the housing pyrmamid. I was lucky, I happened to buy and sell at the right times. Most people in my position will tell you the opposite because they believe that house price inflation is making everyone rich. It is not. I want people to be able to afford a house, like I can.

Graham_Devon

shark99 wrote: »

That's true - but the worrying thing is that many solicitors don't seem to understand all the implications of how the shared ownership schemes are structured, which makes one wonder how anyone else has a chance ...

It's a minefield, purely because of the numerous different types of schemes.

Wish there was just a couple of schemes really, but there are quite a few, from varying offerings, to various T&C's etc depending on locality.

BitterAndTwisted

There is an absolutely MASSIVE new development near where I live (600-plus) and some of those homes are being offered for shared ownership. Currently a one-bed "luxury river-side apartment" would set you back £167k off-plan. This is also where a great part of the the housing available will be used by a local housing association. I'm not sure that "owning" a property being surrounded by HA tenants would be an attractive prospect at that sort of price. I know it wouldn't to me and I'm an LA tenant.

Orpheo

luxury river-side

:rotfl::rotfl::rotfl:

HAMISH_MCTAVISH

Orpheo wrote: »

overpriced houses.

There is no such thing.

Prices are set by supply and demand, nothing else.

By definition, the selling price is the market price, and there is no such thing as "over priced".

the housing pyrmamid..

Doesn't exist.

All wealth in housing is ultimately recycled to younger generations, and always will be unless we abolish death....

Graham_Devon

HAMISH_MCTAVISH wrote: »

There is no such thing.

Prices are set by supply and demand, nothing else.

By definition, the selling price is the market price, and there is no such thing as "over priced".



Doesn't exist.

All wealth in housing is ultimately recycled to younger generations, and always will be unless we abolish death....

I just pulled you up on this on another thread. Howcome you are happy to talk about undervalued housing? Yet say there is no such thing as overvalued housing?