NewBuy Guarantee Scheme

wymondham

Do people who buy half milion pound property need taxpayers help?

surely something more sensible would be up to £100,000 ??

ps. I dont agree with another scheme to prop up house prices. If this was a genuine 'people need homes' scheme then it would also apply to older properties, instead its just nice shiney new, overpriced ones!

lucky 100,000 people who will now price out the rest of them!

its bad enough my taxes fund 'aid' to countries that dont like us or have a space programme, but i dont want to fund peoples wealth accumulation, as its unavoidable that if people buy homes then value may go up!

SecondLegDownIsTheBigOne

brit1234 wrote: »

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.

Well said brit. This NEGATIVE EQUITY TRAP will be made much worse by increased disparity between new-build homes and existing housing stock.

If you are one of the very few who will be able to save the £15k+ share of the deposit that you will have to stump up to get on board this wheeze, be ready to lose that money in an instant.

CRASH_BANG_WALLOP

it says it all about the uk housing market when the government dudes come up with daft ideas in the hope they trap some poor suckers

shortchanged_2

The more I think about this the more I realise it is a bonkers scheme.

As others have said unless you put this sort of help across the whole spectrum of housing all it will do is create a new generation of negative equity new builds as house prices around them continue to fall, inevitably they will lose value as well and who is stumping up for this? Yes the good old taxpayer again.

Schapps, admit it, you have no good ideas. God a better idea even though it would still be wrong would be to subsidise construction companies directly in order for them to sell houses at cheaper prices in the first place. I would rather that than all these sh*t schemes that are designed to maintain stupidly high house prices.

Carl31

Surely, this is another means for giving people, who cant really afford to buy, a dangerous means of getting themselves in trouble?

I imagine people that use schemes such as this, will also be severely affected by fluctuations in interest rates. A smaller deposit means more exposure to rate changes, and ill bet this risk isnt properly considered by many that take part in the scheme

Graham_Devon

I'd be interested to know why over 50% of builders and lenders have now pulled out?

They haven't really got much to lose.

wotsthat

Graham_Devon wrote: »

It's just more evidence that business controls the government.

I remember the discussion about the £50 rebate for South West Water customers, and at the time joking that that £50 would be eaten up by increases by the time it's paid.

We've another price increase to go yet, and already, more than half of that £50 rebate which won't come in until April 13, is already swallowed up.

South West Water made record breaking profits, released just after the rebate news last year.

Seems you were certain that South-West Water would continue to make bumper profits. You also seemed sure that the rebate would be gobbled up by price increases that SWW would easily be able to push through.

What a company! You did buy shares in it didn't you?

Graham_Devon wrote: »

But it's all good, because we've only also got billions in the banks, which are also in trouble should house prices decrease. So it's a double whammy. We just seem to be continually increasing taxpayer exposure to higher prices, and hoping it causes higher prices.

At least you are starting to understand that there are downsides to decreasing house prices.

wotsthat

Graham_Devon wrote: »

I'd be interested to know why over 50% of builders and lenders have now pulled out?

They haven't really got much to lose.

I don't know if that's true but in recent weeks we've seen

- housebuilders seem to be rebuilding margins and profits
- lenders are increasing margins quite happily

If I was a builder or lender I'd question the value of politicians sticking their snouts in my business especially if I was reasonably happy with how things were going.

Graham_Devon

wotsthat wrote: »

I don't know if that's true but in recent weeks we've seen

- housebuilders seem to be rebuilding margins and profits
- lenders are increasing margins quite happily

If I was a builder or lender I'd question the value of politicians sticking their snouts in my business especially if I was reasonably happy with how things were going.

Really?

You'd sign up to a government incentive, only to turn round and say you don't like the government being involved in your business, so therefore pull out?

Righty oh old chap.

wotsthat

Graham_Devon wrote: »

Really?

You'd sign up to a government incentive, only to turn round and say you don't like the government being involved in your business, so therefore pull out?

Righty oh old chap.

I wouldn't publicly say that but that's what I'd be thinking.

Government incentives don't just involve receiving cheques no questions asked. They'll involve loads of paperwork and civil servants trying to lord it over private companies. None of us would be surprised if the incentives weren't lost in red tape costs.

If the housebuilder was desperate then there's not much choice but if there was a real optimism that things were picking up they might think, on balance, it's not worth it.

Same for lenders. Alright they get some protection but there's a high risk that government guarantees when called upon would involve a difficult, convoluted and costly process. Why not just continue as they are? Average LTV 60%, low arrears, picking and choosing customers without government interference, increasing SVR's and low funding costs. Low risk and high margin - why rock the boat?