MSE News: Government house buying scheme launched

brit1234

Lizling wrote: »

I’d like to buy before London prices re-inflate out of our reach.

What evidence have you for this?

We know the London market is a bubble on a bubble fuelled by foreign money which is drastically falling. In the budget there is likely to be a posible mansion tax, stamp duty loop hole closure and more. It is likely that this foreign money will reduce even further. The London suburbs are suffering and we are starting to see price falls in London figures.

Just follow the money and ask yourself can all London prices really just continue rising and what is available to fund that.

sparkly_momma

I do get frustrated when people say SAVE SAVE SAVE when you're already renting to buy a home when we're paying far more in rent than we would on a mortgage! Whilst I agree that new-builds are ridiculously expensive, and this scheme would be great if offered on the normal housing market that is never going to happen. I also get angry when people imply that because we rent then we are morons and wouldn't be able to manage our finances well enough for a mortgage! Oh and really getting on your high horse that we should all own our homes before starting a family! This is the real world, accidents happen lol!
It costs several hundreds each time we move from rental to rental, and once out of our 6 months we are subject to our tenancy ending at any point. That's money that has to come out of the deposit savings. It's horrible to think that even if you pay your rent 100% someone can take the house away at any point, you're subject to inspections every 3mths and not free to decorate etc. So yes, owning your own home is a HUGE deal. We won't be participating in any of the government schemes as we CAN afford to save £300 a month and I am holding out for an older property

Idiophreak

brit1234 wrote: »

What evidence have you for this?

It's called *speculation*...and evidence isn't required for it.

Lizling

brit1234 wrote: »

What evidence have you for this?

We know the London market is a bubble on a bubble fuelled by foreign money which is drastically falling.

[..]

The bubble is in the luxury end of the market, where the foreign money goes as an investment. That end of the market is irrelevant to me.

The other bubble is in BTL, but as long as people just wanting a home can't get mortgages, people have no choice but to rent so I don't see how that can burst any time soon.

I also think it would be very hard to argue that demand isn't greater than supply in most of London.

Obviously I can't know for sure what will happen. I'm working on best guess, same as anyone else without a crystal ball.

downs523

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.

What about putting 10% down as a deposit? Still instant negative equity?

downs523

Also what happens when you come to sell? Can't find the info anywhere?