SHAREDOWNERSHIP is FANTASTIC!

geoffky

The well respected foundation points out the chances of them owning their own property is very slim indeed.

It maybe old but what has changed apart from a lot more suckers who have been conned..When this lot unfolds you will hear the screams of wrongly sold..s/o is a mugs game but what is your vested interest?

St00zer

Geoff

Shared ownership has been going for over a decade, I have only read a handful of stories of it not working out. But those that managed their finances well have done well out of it.

Who is conned if you buy say 25% of the property and rent at a very subsidised rent for the rest of your life without buying the balance of the share & thus having massive disposable income whilst your mates who bought a property outright are spending most of their adult life paying of their mortgage?

brit1234

St00zer wrote: »

Geoff

Shared ownership has been going for over a decade, I have only read a handful of stories of it not working out. But those that managed their finances well have done well out of it.

There are dozens of MSE members threads where they have a problem. A lot of the recent ones have said members have been offered the sane property cheaper if they don't buy it under shared ownership. It is a scam to keep house prices high and milk the owners out of their money.

St00zer wrote: »

Who is conned if you buy say 25% of the property and rent at a very subsidised rent for the rest of your life without buying the balance of the share & thus having massive disposable income whilst your mates who bought a property outright are spending most of their adult life paying of their mortgage?

All the buyers as they are over paying. This is money saving expert not money losing expert.

mickym

We looked into it a fair bit, but found one common problem. The prices of the properties were often inflated so despite only paying a percentage of the whole mortgage, you were paying for a price that you could get cheaper outside the realms of shared ownership.

Im not saying its a terrible thing, im sure it works for some, but may be better off doing extra saving before flying the nest, or renting a cheap place to build up more deposit for your own place.

mickym

St00zer wrote: »

Geoff

Shared ownership has been going for over a decade, I have only read a handful of stories of it not working out. But those that managed their finances well have done well out of it.

Who is conned if you buy say 25% of the property and rent at a very subsidised rent for the rest of your life without buying the balance of the share & thus having massive disposable income whilst your mates who bought a property outright are spending most of their adult life paying of their mortgage?

It shouldnt be totally disposable. You may be having a cheaper ride at that time, but who knows what the future will bring...be shrewd!

St00zer

brit1234 wrote: »

There are dozens of MSE members threads where they have a problem. A lot of the recent ones have said members have been offered the sane property cheaper if they don't buy it under shared ownership. It is a scam to keep house prices high and milk the owners out of their money.



All the buyers as they are over paying. This is money saving expert not money losing expert.

Do you think your the only one who has all the information at your dispoal to have the view that all the buyers are overpaying?

House prices are expensive without a doubt, but that is not to say they are about to crash 50%.

There are still properties that are 20% below their peak of 07 and inflation has been about 13% since 07, so in effect property prices are down 33% adjusted for inflation in some places.

I doubt we are about to have some kind of property crash, especially with talks of QE.

If I had a choice between renting and buying, I would buy.

I think the people who will lose out over the next few years are the ones holding large piles of cash earning diddly squat IMO.

St00zer

We looked into it a fair bit, but found one common problem. The prices of the properties were often inflated so despite only paying a percentage of the whole mortgage, you were paying for a price that you could get cheaper outside the realms of shared ownership.

Would you buy any property on the market? No. You would consider a number of metrics as you should do with Shared Ownership. Some of the deals are rotten and are not worth going for, others are fantastic and worth grabbing with both hands.

St00zer

mickym wrote: »

It shouldnt be totally disposable. You may be having a cheaper ride at that time, but who knows what the future will bring...be shrewd!

I never did say anything about throwing the money away, just because you have loads of disposable income does'nt mean you should waste it.

One can do many things with disposable income, like buy cheap shares offering 7-8% dividends, especially since the stock market is below it's peak set 10 years ago and has a track record of beating all other asset classes over the long term.

I would even go as far as saying with low interest rates that it is compelling to take an interest only mortgage, put most of your disposable income into shares and eventually you can pay off your inflated away debt using your shares.

Infact I think one can make a lot of money taking this route.

IMO DYOR.

mickym

St00zer wrote: »

We looked into it a fair bit, but found one common problem. The prices of the properties were often inflated so despite only paying a percentage of the whole mortgage, you were paying for a price that you could get cheaper outside the realms of shared ownership.

Would you buy any property on the market? No. You would consider a number of metrics as you should do with Shared Ownership. Some of the deals are rotten and are not worth going for, others are fantastic and worth grabbing with both hands.

True, but looking into it it was extremely rare to find a decent value opportunity.

The majority of information we got was based on overpriced properties whether new build or older properties.

Im sure bargains are there to be had but they seem to be very rare.

k1985

Hi St00zer,

Thanks for your input, the flat is a bit smaller than my friends one who paid 148k, but looking around is still ok value.

Combined takehome salary works out at about 2000, more if she does overtime.

To buy anywhere else on a newbuild shared equity scheme would mean paying way over the odds - a 2 bed coach house @ £156k! I could get a 3 bed semi for that money and have change!

Anything else on shared ownership is in pretty scummy areas unfortunately. Nice developments but plonked in the middle of the worst places in Plymouth.

My girlfriend and I are both currently living at home trying to save as much as we can. Got the mortgage man coming around tonight to see if he can help and get an idea of other options but I doubt there are any with our small deposit. Plus I have a default from just over 5 years ago which is in the process of being settled. He tells me he has spoken to Abbey and explained the circumstances and they can't see an issue though so fingers crossed.