The government will now GIVE you 20% of your deposit

JasonLVC

Killerseven wrote: »

These crazy schemes are getting more desperate, I wonder what the latest will be this time next year. Maybe, for every pound you save for your deposit the gov will add another pound, then you only need 5% deposit and the gov will give the developer 50% interest free for 5 years, plus a fancy ribbon on your new home!!!!!!

Anything to keep these high prices from crashing.

Previous government gave everyone with a child at least £350 to start a Child Trust Fund (CTF).


It was to encourage a saving mentality, but it really was just free money for those who already could easily afford to save for their child. The providers charged a lot in fees for managing something quite so simple and so CTF's became just another cynical giveaway.

IveSeenTheLight

Graham_Devon wrote: »

Not as good as it first sounds then. £3,000 isn't anything to be sniffed at, of course, but if it takes 5 years to get the full 3k, seems almost not worth it.

Most I would expect to receive a maximum of a grand.

I wonder if you will have to buy a house under HTB to make use of it, as it's a HTB ISA.

Not worth it? Are you for real.
This equates to a 25% ISA.

Anything on the market offering that?

If your saving for a property, it's a no brainer to save in a 25% return scheme.

stator

setmefree2 wrote: »

Then the quality of rented property would be rubbish (like it was in the 80s) because people would'nt be incentivized to become landlords.

The 'quality' of rented property couldn't get much worse in my experience. Illegal, unsafe practices by landlords are the norm rather than the exception. Tenants can't do anything because of insecure tenancies.

stator

Physics wrote: »

Expected to cost £835m a year by the end of the scheme.

Quite a bit.

What's the source of that fact?

Graham_Devon

setmefree2 wrote: »

Then the quality of rented property would be rubbish (like it was in the 80s) because people would'nt be incentivized to become landlords.

Suggest you look at the quality now.

On C4 on Monday there was a programme looking at letting agents in Yorkshire.

The properties were practically falling down, but they were still rented out at max local authority allowance and everyone was taking their cut. The whole game relied on buying cheap properties (under 30k) and renting them out for £85 a week to housing benefit tenants. There were hundreds of houses on the books of these agents....they would buy them on behalf of the landlord and then run the tenancies. Basic theme was stack em high, sell them at the max allowance, and take the profits.

One had rat runs, litterally, through the house. Holes in ceilings. Holes in walls. No heating etc etc.

ziggycj

Graham_Devon wrote: »

That's a good point actually.

I can imagine a lot of people will start these ISA's and see the money starting to drip in. How many then go on to use it for a house is anyones guess. They may get a large car bill or something and take money out.

To benefit from this you have to buy a property. You only get the bonus when you buy a property. If you take the money out for something else, you just get your money with no bonus.

Graham_Devon

ziggycj wrote: »

To benefit from this you have to buy a property. You only get the bonus when you buy a property. If you take the money out for something else, you just get your money with no bonus.

Yes, realise that. But my point was that I doubt many will actually gain much from it, but I reckon the take up would be high.

My example of the large car bill was a suggestion for where the idea to use these accounts are great, but the actual realities may prevent people benefiting from them.

Yet the taxpayer is still paying to run the accounts.

Killerseven

JasonLVC wrote: »

Previous government gave everyone with a child at least £350 to start a Child Trust Fund (CTF).


It was to encourage a saving mentality, but it really was just free money for those who already could easily afford to save for their child. The providers charged a lot in fees for managing something quite so simple and so CTF's became just another cynical giveaway.

£350? I only got £250?

Jason74

stator wrote: »

The 'quality' of rented property couldn't get much worse in my experience. Illegal, unsafe practices by landlords are the norm rather than the exception. Tenants can't do anything because of insecure tenancies.

Very true, although the new law on "revenge evictions" should in theory improve things a bit. I say "a bit" as the fundemental problem of private sector tenancies being too insecure still remains.

http://blog.shelter.org.uk/2015/03/a-year-to-change-the-law/

JasonLVC

Killerseven wrote: »

£350? I only got £250?

It was £250 for every child and an additional £250 for very low income households.

Then, at age of 7, the child would get another £250 and if a low income household, a further £250 on top of the £250.

Osbourne scrapped the scheme in August 2010 and so those with children born in 2002 (when the CTF was started) would have got the first £250 and the second £250 at age 7.


But for those who had children after August 2003 would only have got the first £250 because by the time the child was eligible for the 2nd payment aged 7 it was scrapped (ie born August 2003, you'd be aged 7 in August 2010 and so scheme was scraped, if you were born January 2003 you'd have been alright)