Shared Ownership buying

Graham_Devon

Orpheo wrote: »

They also had all the responsibilities of a mortgagor with respect to insurance, repairs and maintenance.

Contents insurance.

Repairs and maintenance? And?

First we have to assume they made no profit, secondly, we have to assume they spent hundreds on repairing a new build.

Seriously guys. Get a grip with this one. We know you think it's a scam, and I know your reasons why, but the above, including wiping out the 8 grand profit is a bit much.

Notice no one is making a comment about the cost of private renting vs the cost of mortgage and rent on the SO house. There was a cost saving there each month, which you will need to take into consideration, instead of only taking into consideration vague, unjustified costs.

gingertips

I hate shared ownership. But you need to make up your own mind.

Ignore the property companies who tell you its wonderful & also the House property crash brigade who tell you shared ownership is just propping up an unrealistic market and make up your own mind.

Do the financials on a shared ownership - then compare to buying privately a similar property (similar property isnt always a similar price - this is my big issue with shared ownership - they can be significantly overpriced compared to what you can actually get on the open market - and from day 1 you end up being 20% in negative equity).

What does both sets of numbers look like after 5 years, after 10 years? How much cheaper is similar property if you financed deposit yourself? If you bought it and then had to sell it the next day - how much would you be in negative equity for?

Remember that nobody gives you anything for free - dont kid yourself that these companies are doing it out of kindness or because they are desperate. Even with recession, these companies are still generating very healthy revenue & profits - they have simply scaled back how many they are building because they know from Spain, NI, USA etc that flooding the market forces down prices.

neednewhouse

Maybe it works for me because it's not a private company but a non profit making housing association. Rent can only increase by a certain amount a year (set by the government I think), based on inflation, last year when it would've been 5% the housing association increased it less.

I understand that some people don't like the idea but for me it works, and is far preferable to private renting at £500+/month. My daughters last 2 flats were both repossessed when the landlords got behind with their mortgages, leaving her moving twice in a year, I'm too old for that, I need some security, I don't tho need the worry of sorting out building maintenance and that's the housing associations problem.

Each to their own, I suppose

NNH

Graham_Devon

gingertips wrote: »

I hate shared ownership. But you need to make up your own mind.

Ignore the property companies who tell you its wonderful & also the House property crash brigade who tell you shared ownership is just propping up an unrealistic market and make up your own mind.

Do the financials on a shared ownership - then compare to buying privately a similar property (similar property isnt always a similar price - this is my big issue with shared ownership - they can be significantly overpriced compared to what you can actually get on the open market - and from day 1 you end up being 20% in negative equity).

What does both sets of numbers look like after 5 years, after 10 years? How much cheaper is similar property if you financed deposit yourself? If you bought it and then had to sell it the next day - how much would you be in negative equity for?

Remember that nobody gives you anything for free - dont kid yourself that these companies are doing it out of kindness or because they are desperate. Even with recession, these companies are still generating very healthy revenue & profits - they have simply scaled back how many they are building because they know from Spain, NI, USA etc that flooding the market forces down prices.

That's shared equity you are talking about.

A completely different scheme.

deniseevelek

Anastacia5887 wrote: »

Hi! I'm one of those unlucky people who havent saved £10,000 for a deposit on a mortgage.

I'm thinking of doing this shared ownership scheme were you buy a certain share of the house and pay a mortgage on it and then pay rent on the rest.

What do people think of these schemes? Are they a rip off? Has anyone been successful in buying this way?

Any info would help!!

I have lived in a half rent half buy property for 3 yrs and have had no problems, although the initial buying process took a long time !
The rent has gone up slightly, £4 a yr but i dont pay buildings ins as that is covered by the housing assosiation (places for people)
I have found it great, its an easier way to get on the property ladder and with places for people you have the option to buy their half at any time... Se what the housing assosiation your thinking of has to offer.:money:

Anastacia5887

The scheme I was looking into was through ISOS. It offers up to 5 years renting, whilst you save for a deposit on the mortgage you require to own a share. What are the mortgage/rent repayments like? I mean If I wanted to own 25% of a £38,000 house i'd need a mortgage of about £34,000. It seems good in some ways, but I do worry about the selling part!

Anastacia5887

Sorry that should have said £138,00 house!!

dollymouse_2

Shared Ownership has definitely worked out for me. I bought a 50% share in a 2 bed house 7 years ago, my income at the time meant that I could only get a smallish mortgage. Had I not been able to buy this property I'd still probably be living with my parents-ahhhh!!

For me it works out financially as the combined cost of the rent and mortgage is less than what I would pay locally to rent something similiar. I also have the option to staircase (buy further shares) at any time. Once I am back to work following my maternity leave this is exactly what I'm planning to do.

I am wholly responsible for any repairs or improvements carried out and also contents insurance. The Housing Association cover the buildings insurance which covers any major structural issues etc.

In this area there is a high demand for shared ownership so they always get snapped up really quickly when put up for sale.

I have looked at other shared ownership properties and some do differ in regard to responsibilities, staircasing etc so make sure your 100% sure of everything in the contract and have done your maths before signing up.

Good Luck OP! If you have any questions let me know, or if i havent made sense lol (baby brain!)

x

WelshNic

poppysarah wrote: »

There are probably as many threads from people who are having trouble selling etc

Aahhh is that so?

As with all purchases, especially what will probably turn out to be the biggest financial commitment you'll make in your life, it's buyer beware but the SO/scam mantra some of you are trying to perpetuate is getting a bit silly now don't you think?

Graham_Devon

Anastacia5887 wrote: »

The scheme I was looking into was through ISOS. It offers up to 5 years renting, whilst you save for a deposit on the mortgage you require to own a share. What are the mortgage/rent repayments like? I mean If I wanted to own 25% of a £38,000 house i'd need a mortgage of about £34,000. It seems good in some ways, but I do worry about the selling part!

That's shared equity.

So don't go researching shared ownership! It's a completely different scheme.