Buyers Who Will NEVER Own Their Homes

leveller2911

moneyinmypocket wrote: »

Better to own a little than none at all.

But is it ? I'm not sure I agree.........

Given the fact that they will need to gain the landlords permission to carry out any improvements and the rent increases are not fixed. Then theres the fact that if/when they come to sell they will have a limited market, many people don't want to own half a house.Theres also a limited choice of mortgages on offer for Shared Ownership.

Graham_Devon

Running_Horse wrote: »

A lot of new builds are coming on the market in Cambridge, but priced as shared ownership based on pre build prices. Now if they were all built and the market allowed to find its own level, maybe prices would drop to a more affordable level.

30% of a two bed flat:

http://www.rightmove.co.uk/property-for-sale/property-32068386.html?backListLink=%2Fproperty-for-sale%2Fmap.html%3FlocationIdentifier%3DREGION%255E274%26insId%3D4%23_includeSSTC%3Don%26auction%3Dfalse%26locationIdentifier%3DREGION%255E274%26previousSearchLocation%3DCambridge%26radius%3D0.0%26searchLocation%3DCambridge%26searchType%3DSALE%26useLocationIdentifier%3Dfalse%26box%3D0.11818%2C0.14689%2C52.18726%2C52.19626%26popupPropertyId%3D32068386&fromMap=true

Plus rent and service charges.

That's a bit ridiculous. Not sure the figures are right.

They are suggesting that that 2 bed flat is worth £400,000?

I think many of us have lost a sense of reality when looking at such large numbers. That's nearly half a million pounds for a 2 bed flat.

thescouselander

Graham_Devon wrote: »

That's a bit ridiculous. Not sure the figures are right.

They are suggesting that that 2 bed flat is worth £400,000?

I think many of us have lost a sense of reality when looking at such large numbers. That's nearly half a million pounds for a 2 bed flat.

I was just thinking that. It's 30% of £120K surely?

Graham_Devon

thescouselander wrote: »

I was just thinking that. It's 30% of £120K surely?

They normally advertise the lower price, to draw buyers in.

Edit: Definately 400k...

http://homes.trovit.co.uk/index.php/cod.ad/id.10XD1w191o161l/what_d.flat%20cb2/type.1/pos.1/origin.2/section.1/section_type.1/page.1/pop.0

CLAPTON

it is 420k for a two bed flat as looking at rightmove will verify.


http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=STATION^1703&insId=1&maxPrice=550000&minBedrooms=2&maxBedrooms=2&radius=0.5&googleAnalyticsChannel=buying

chucknorris

Graham_Devon wrote: »

They normally advertise the lower price, to draw buyers in.

Could be 120k total.

What is your opinion of shared ownership Graham? Has it been positive, or has there been a few things that you are not totally happy with?

thescouselander

CLAPTON wrote: »

it is 420k for a two bed flat as looking at rightmove will verify.


http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=STATION^1703&insId=1&maxPrice=550000&minBedrooms=2&maxBedrooms=2&radius=0.5&googleAnalyticsChannel=buying

That's just nuts. Some people obviously have more money than sense.

Running_Horse

That's Cambridge. If it was a forever family home, then maybe. That would just be the cost of staying in your home town, which almost none of my schoolmates did despite it being a fantastic city.

But for a 30% share of a flat that will not meet family needs? These schemes seem to be designed to maintain ludicrously high prices, rather than give "the poor" a stake in society.

Graham_Devon

chucknorris wrote: »

What is your opinion of shared ownership Graham? Has it been positive, or has there been a few things that you are not totally happy with?

Positives and Negatives.

I've gone into detail on it quite a few times now. The first and biggest variable is that it depends on the scheme / association. They all seem to operate differently.

The basic premise, for me at least is if your only options are shared ownership or renting (which mine were), so long as you plan to stay in that house for a few years, shared ownership is the better route.

People often compare shared ownership to full ownership. That misses the point though. It's unlikely anyone looking into SO is able to buy 100%, so the comparisons are pointless.

Not as good as owning 100%, obviously. But better, in my mind, then renting.

I'd never buy a flat on SO though. And certainly not at that price!!

wymondham

leveller2911 wrote: »

But is it ? I'm not sure I agree.........

Given the fact that they will need to gain the landlords permission to carry out any improvements and the rent increases are not fixed. Then theres the fact that if/when they come to sell they will have a limited market, many people don't want to own half a house.Theres also a limited choice of mortgages on offer for Shared Ownership.

I agree. As has been discussed many times on this forum over the years there are downsides to these schemes....