FTB - What is realistic?

crashinit

well dont buy start saving cuz the whole market is about to crash, youll end up losing the most as a FTB if it goes tits up.

watcherman

kebl0826 wrote:

Quite often key workers can't even afford these schemes so they have open them up to non-key workers otherwise they would lie empty for months, if not years!

This was the subject of Trevor McDonald's Tonight programme last Fri 1st Dec.

PoorDave

crashinit wrote:

well dont buy start saving cuz the whole market is about to crash, youll end up losing the most as a FTB if it goes tits up.

Hmm...your opinions presented as if they were facts! Useful!

mayb_2

With regards to shared ownership do you know whether you would be purchasing the 'rest' of the flat/house at the same price as your first share? What I am trying to say is if the flat was 130 thousand when you bought the first 50%, will you be paying 65 thousand for the next 50%?

My brother went into shared ownership on a council house and when he was ready to buy the remaining share he found that the price of that had gone up, as it was to be bought at the new market value. He is now in a position where with rising house prices he has never been able to catch up and afford to buy the rest of his house.

kebl0826

mayb wrote:

With regards to shared ownership do you know whether you would be purchasing the 'rest' of the flat/house at the same price as your first share? What I am trying to say is if the flat was 130 thousand when you bought the first 50%, will you be paying 65 thousand for the next 50%?

My brother went into shared ownership on a council house and when he was ready to buy the remaining share he found that the price of that had gone up, as it was to be bought at the new market value. He is now in a position where with rising house prices he has never been able to catch up and afford to buy the rest of his house.

That's right, I would have to buy extra shares at the market value at that particular time.

In response to the guy who thinks the market will crash, I'm not really concerned if it does because:

- It is a long term investment (intend to be there at least 5 years).
- If prices go down I should be able to buy extra shares more easily.
- If prices go up I make a profit on my share

crashinit

i would prefer to renting its cheaper than a buy to share, plus the share market is a total con. harder to sell in the long run, having to pay for service charges and everything else a lease holder would pay and still paying rent, then you add up the 50% rent and your interest mortgage and this comes to the same price as renting but on top of that you have to pay for charges and if something goes wrong with the lifts or other, then you have to foot the bill. Most buy to share will only allow 75% of the share so its still dead money.Then when the market drops who would in their right mind buy 50% of the share.

mr.broderick

crashinit wrote:

i would prefer to renting its cheaper than a buy to share, plus the share market is a total con. harder to sell in the long run, having to pay for service charges and everything else a lease holder would pay and still paying rent, then you add up the 50% rent and your interest mortgage and this comes to the same price as renting but on top of that you have to pay for charges and if something goes wrong with the lifts or other, then you have to foot the bill. Most buy to share will only allow 75% of the share so its still dead money.Then when the market drops who would in their right mind buy 50% of the share.

How much is the house you rent worth now?

tomstickland

which thanks to the spate of "make millions by painting a radiator" TV shows

So true, that made me LOL.

kebl0826

crashinit wrote:

i would prefer to renting its cheaper than a buy to share, plus the share market is a total con. harder to sell in the long run, having to pay for service charges and everything else a lease holder would pay and still paying rent, then you add up the 50% rent and your interest mortgage and this comes to the same price as renting but on top of that you have to pay for charges and if something goes wrong with the lifts or other, then you have to foot the bill. Most buy to share will only allow 75% of the share so its still dead money.Then when the market drops who would in their right mind buy 50% of the share.

Depends on a case to case basis really. I will be paying £180 in rent per month and will own only 60% of the property outright. Those are the only two downsides from my point of view.

Ok, so I'll be paying £100 per month service charge, however this includes buildings insurance, maintenance, water rates, ground rent and parking space. On the open market I've seen a lot worse flats expecting you to pay £90+ service charge in a rickety old building!

Not may FTBs in London can expect to buy a freehold property since it would almost certainly have to be a 3-bed+.

If I wish to sell my flat I would have to offer it to key-workers only for the first 3 months of sale, ie the HA would nominate a buyer. If this falls through then the occupier (ie me) can sell my share to absolutely anyone. If that person wants to buy the whole property outright and they can afford it then they can buy the remaining share off the HA.

mayb_2

Renting can be a good option for some people. If your earnings are not high enough to get you the mortgage you need, renting for 6 months or more can show a lender that you are able to pay out a sum of money each month which is perhaps equivalent to repayments on a higher mortgage.

In this country we tend to buy property, but this is not the way it is done in other European countries. If in the end we all end up with lifetime mortgages as the only way to afford one then it wont feel any different to renting. If prices keep on rising and incomes don't keep up then first time buyers will get harder to find. A lot of the cheaper houses are being bought to let out but there must be a ceiling on how much rent those who can't afford to buy can pay.

In the end house prices may well come down because of these pressures on the market and it may be that those buying now will pay more than they will if they wait a year or two.

In the end we all make choices which fit our situation at the time - but I tend to agree that prices ought to fall because the market is drying up in some areas. If that does happen then presumably you will all be better off. Rents will have to come down or people will buy instead. Those buying a share will be able to buy more of their property and those on lower incomes wanting to buy will have a better chance of getting on the ladder.
So perhaps we should all hope that crashinit is right.