Help to buy

amnblog

There seems to be a wave of posters 'taking a pop' at those who are looking to use the H2B scheme.

I don't see any real opportunity for buyers to abuse the scheme. (although I wouldn't necessarily say the same about the developers of the Government).

From what I have seen the H2B buyers are not 'low earners' that are portrayed above.

They all seem to be sensible earners that want to own their own home like their parents.

The opportunity is there and people with take it. Just like when there was MIRAS available - whether it is a good or bad idea in the big scheme of things is not the concern of an individual.

The lack of sensible social housing is the real issue but don't get me started on that.

billchecker1

I am a taxpayer looking to move up the ladder.

Can easily afford a 10% deposit and for once the government seems to be helping the normal working man rather than benefit scroungers.

I can then use my extra money to either refurbish the house (therby contributing to the economy) or may even stick it in the bank and pay it back in year six.

Having been subject of austerity, Why shouldnt I take advantage of this?

witchy1066

I am sorry but I seem to have been misunderstood , as so easy in a forum
I am not having a pop at anyone,

my partner is on minimum wage and I am on a pension

what I was trying to say is that I don't think these schemes help the low earners in any way, and if you /us can manage to save up a decent deposit without the use of these schemes you/us will be much better off in the future, the more you can put down as a deposit the less chance of negative equity in your/our property

I did not assume that it would be only low earners using theses schemes but because this is the backet we come into ,it was the term I used ,
the higher earner would/should in many cases have other options

sorry if I have offended anyone , from now on I will choose my wording more carefully

I would say if anyone is saving hard to get a deposit together and thinking of using one of theses schemes , if they can wait a few years before you move , hang on, the fall out from these schemes could bring the property market down , and as it was some years ago the house prices will come down again

I sympathise with anyone who HAS to buy next year , the prices will only go up and up for the term of these schemes
many will be left with negative equity

history repeating itself , (obviously I do not know this for sure)

once again sorry for any misunderstanding

witchy1066

Tony_MechEng wrote: »

you can have your views on the scheme but to say the only people who take up the scheme is low earners or cant save up a deposit is just plain patronising.

Who is saying i cant afford to move? we have saved a 5-10% deposit, but the help to buy scheme will get us a 2% better rate, which works out around a £250-300 a month saving over a old house 10% mortgage. within 3-4 years thats 10k off the 'new build inflated price' paid off. In actual fact around my area the difference between a new build 3bed and a old house is much less than that. Throw in the saving in fuel for a 2012 building compare to a 1960's, throw in no unexpected gas boiler breakdowns, leaking roofs, rising damp... there are clearly benefits to the HTB scheme even if you think there are not.

Not blaming anyone for the negative, just dealing with the situation.

you paid cash for your home. sounds dodgey? tax evasion? !!!!!? clearly you deserve to lose it? im kidding, but get my point on judgemental attitudes on here...

that last comment was very harsh and uncalled for,
and very personal

come live in my world for a few months and you will see what its like to struggle on minimum wage and save for a house

not that its any business of yours but I live in a 10ft by 35ft caravan , a "tin tent" because it was all we could afford at the time not wanting to get into debt while my partner was serving for the MOD

demontfort

I don’t blame people for taking advantage of a government handout which is purely designed to stop the housing bubble popping before the next election. However nobody can justify it as many HTB claimants will be fairly well off yet they are looking to sponge off the state. Just like a minority of benefits claimants they will play the system, using government cash to enhance their own wealth. As a taxpayer I couldn’t care less that you can’t afford to buy a bigger house or get on the housing ladder anymore than you care that I can’t afford a bigger car or a fancy holiday to the Maldives. In the end if you are fit and healthy and have a half decent job you should act like an adult and learn to manage your own finances.

If you’re struggling to save a 10% deposit then you are not ready for the financial commitment of a mortgage, why should the government shoulder the credit risk of these high LTV and potentially high risk mortgages. In these times of austerity I can think of a hundred and one better uses of state funds, for starters they could reopen some of the Remploy factories for a fraction of a cost of this idiotic scheme.

leveller2911

amnblog wrote: »

There seems to be a wave of posters 'taking a pop' at those who are looking
to use the H2B scheme.



They all seem to be sensible earners that want to own their own home like
their parents.

I'm sure that if you asked the entire population how many would like to own their own home it would probably be around 90% but wanting something doesn't justify it. Society as a whole will possibly be paying for this scheme but only a few will gain from it. The probelm is the cost of housing compared to earnings and implementing these schemes just kicks the can down the road,it doesn't solve the problem. In the last 10-12 years house prices have risen somewhere in the region of 200% whereas earnings have risen by around 25% and this is the crux.

The lack of sensible social housing is the real issue but don't get me started on that.

I agree wholeheartedly with you on Social Housing policy ,or lack of. The problem as I see it is the Builders don't want to build cheap housing because there is little profit in that sector and also Governments don't want to finance it. Its strange how the Condems are implementing a Socialist state Subsidy (HTB etc) but won't actually build any Social Housing..

As I posted before Society as a whole will be paying for this but only a few will gain from it. Any idea where the Government is borrowing the money from to pay for this?.We are constantly told that as a country we are broke.....

amnblog

The Government are probably not borrowing any money to pay for this.

It is all monopoly figures.

The builder says it is worth 200,000 but is willing to sell 80% and leave 20% 'held' as an equity share by 'the Government'.

75% comes in cash from the lender, 5% in cash from the buyer.

On the other 20% there need be nothing changing hands at all depending on what the Government actually arranges with the builder.

Since the overall effect for the builders is moving plots and more land turned in to cash the 20% is irrelevant to them

jtr2803

leveller2911 wrote: »

Why is this scheme worthy?. Its worthy to you because you would benefit from it. Why should the taxpayer subsidise/ act a guarantor for your mortgage?...

Fair point. Where I have the problem with this statement is when it's incorporated in a sentence that insinuates we are considering HTB for poor finance planning or not really being able to afford a mortgage and I don't think that applies to many, and it certainly doesn't seem to be the target market for the scheme.

I am sure many adults really would like a say in how their taxes are utilised and which schemes it should be directed to, but unfortunately we don't. I often wonder how much is/has been written off from Student Loans over recent years because it's not been recoverable - just as an example.

I also take on board the issues that are present with over inflated housing prices, but I only vaguely remember a time when it was anything but over inflated, I can't sit on my hand for another decade waiting for it to happen again whilst spending over £8k a year on rent.

I would much rather comfortable save a 30% deposit and have a choice within the market but even with our reasonable income that sort of deposit would take well almost four years to save if we were ridiculously careful.

bigadaj

Simple answer, remove the capital gains tax exemption on owner Occupied housing, would significantly damp house price variations, though certainly aware that most of the horses have already bolted.

Now waiting for the outraged responses about over taxation...