Buyers are trapped in shared-ownership schemes

brit1234

Ministers break first-time buyer promises as buyers are trapped in shared-ownership schemes

Tens of thousands of families seduced by Government-backed property schemes are trapped in homes they have outgrown, but can’t sell nor afford to buy outright.

A Money Mail investigation has revealed how first-time buyers who signed up for shared ownership deals have never been able to fulfil the dream they feel they were sold.

Full story on link below:


Read more: http://www.thisismoney.co.uk/money/mortgageshome/article-2097833/Ministers-break-shared-ownership-pledge-time-buyers-trapped.html#ixzz1m46OCw9E

:think:

There are many posters here including me who are dead against shared ownership and shared equity schemes. We have done our research, worked out the costs and read the fine print. This site is called Money saving expert and that is why we warn about the dangers of Shared Ownership/Equity which is designed to help the developer only by keeping prices artificially high and milk the buyer, it is far from affordable housing.

If you are considering these schemes please do your research, use your head not your heart. It is easier to save that deposit than you think and there are many articles how to save better and the bank accounts with the best rates.

The main MSE debate is a good place to start your research:

https://forums.moneysavingexpert.com/discussion/3177256

PasturesNew

I had one of these. Bought at the peak, sold at the bottom, had to write a cheque out for 5% to be able to sell it .... good old negative equity. I was pleased that I'd had the use of the house for 7 years though, the security of tenure was very settling.

brit1234

PasturesNew wrote: »

I had one of these. Bought at the peak, sold at the bottom, had to write a cheque out for 5% to be able to sell it .... good old negative equity. I was pleased that I'd had the use of the house for 7 years though, the security of tenure was very settling.

I would rather of rented in that time and save a deposit over those 7 years. This is what I have done and now have a 305 deposit plus costs ready to buy a normal house.

I like the freedom to sell without tight conditions and costs imposed on me by a housing association. I also like the idea of buying not in a block where I may have troublesom neighbours moved in by the housing association which is a real risk.

kingstreet

Although I don't disagree with the tenet of the article, it's also fair to say there are many "normal" buyers who for one reason or another are stuck in their current mortgage and/or stuck in their current property because of negative equity and can't move.

The problem is more common and not confined to SO/SE purchases.

brit1234

kingstreet wrote: »

The problem is more common and not confined to SO/SE purchases.

Yes the problem is common but I would argue it is far higher in shared ownership/equity, self cert/liar loans, 95-125% mortgaged properties.

Clearly people who bought with bigger deposits are going to be at far less risk of this. Also the problem will get worse as house prices fall further.

betmunch

A dreadful article in my opinion. You cant title it Ministers Break Promises, then not say what the broken promises are. Just because people dont take up the option to buy more of the house doesnt mean the promise that you can has been broken. Shared Ownership is right for some and wrong for others. No two ways about it, you need to make the decision if its right or wrong for you like a grown adult.

brit1234

betmunch wrote: »

Shared Ownership is right for some and wrong for others

I agree. Its right for the developers and housing associations and wrong for people buying it. No doubt about it shared ownership is a scam.

betmunch

brit1234 wrote: »

I agree. Its right for the developers and housing associations and wrong for people buying it. No doubt about it shared ownership is a scam.

Hahaha, Thats one take on it!

heathcote123

brit1234 wrote: »

I agree. Its right for the developers and housing associations and wrong for people buying it. No doubt about it shared ownership is a scam.

Heres mine:

Bought 50% 82.5k 2007 of house, identical one just went 100% for 181k.

Overpaid mortgage, so will be fully paid up on 1st April. (thats a new tax year btw, not an April fools joke)

Left with 180k house that I now have a 50% rental of £120pcm for. No service charges, no additional costs.

The HA have charged me around 7k on a market rate of around 20k. The !!!!!!s.

I could buy it out, but it would be a pretty daft thing to do, don't you agree?

Woe is me!

Incidentally, pretty much any property is susceptible to bad neighbours. Thats why I wouldn't ever buy a flat, high density/low income increases your chances regardless of payment vehicle.

It's not generally hard to find 'many posters' that think the Royal family are lizards on an internet forum, it hardly gives your 'arguament' credence.

If you want to be taken seriously, how about sharing some of your research rather than posting a couple sloppy one-sided articles? or maybe that IS your 'research'?

heathcote123

My god that article is bad.

Does anyone earning 13k a year really ever expect to own a property outright in Surrey?

And at a return of somewhere between 1 % 2% to the HA, is it any wonder so few increase their stakes? The money is better in the bank, even at current rates.

Illiterate article for the hard of thinking.