What would you do in my situation???

Dan-Dan

ruthmt wrote: »

OK- So I am looking for advice on what others would do in my situation and the different schemes others have used to buy a property.

I am currently living in social housing but my husband and I have a good household income and earn enough to secure a mortage of around £300,000.

We have a few options:

a) buy our council home with a £100,000 discount. However, I really don't like it here and hate the thought of staying here any longer than necessary....but it does make good financial sense and could set us and our children up for life!

b) we give the council property back and the government will give us £33,000 off of the price of a privately bought house. Where we live £300k will be just enough to buy us a small, ex local authority, terraced house which will probably be smaller than what we currently have.

I have looked at shared ownership but if we went down that route we would not be entitled to use any of the above discounts and our monthly outgoings would be the same as if we just bought a house outright.

We've just started saving around £1700 a month for a deposit- buying our council home (with discount, excluding 10% deposit) would leave us with a mortgage of around £150k but buying privately (with discount, excluding 10% deposit) would leave us with a mortgage of around £265k.

What would you do?

Words fail me

FBaby

but that sacrifice could help me secure a good future for my kids.

Your children will secure a good future if they work hard and invest wisely. Why should social housing protect the future of YOUR children above any other children? They have the same chances in life if no more than many.

nonnatus

I'm a bit gobsmacked to be honest - and probably very naive!

How is it possible that with that kind of income, the Govt will GIVE you £33k towards a private house? I really need to wise up more to how the real world works! Is it just luck?

I'm sure you're a very nice family and you've obviously done very well for yourself, but I don't understand why the Govt should have to pay such a huge sum of money for your lifestyle choice...

dimbo61

Too get a £100,000 discount off the price of the house means you have lived and Paid Rent for a very long time.
Time to buy your home from the council and spend some of the income you now have on refurbishment and possible extension.
If in 5 years you still hate the area then sell up and move to an area you do want to live in

Kynthia

It's possibly a recent change in fortune. Not everyone who has a good household income always had one.

agrinnall

gm4l's suggestion is clearly the most sensible unless there's an extremely good reason for you not to do it (and having to move your kids to a new school isn't a good enough reason).

lighting_up_the_chalice

You don't HAVE to stay for another 5 years. You could stay for, say, 3 years and sell up, with approx 60% of the discount in your back pocket. Assuming no movement in house prices, that would be £60k, or almost double the £33k offered now. Even after 2 years it would be £40k.

Just a thought.

Mickygg

No wonder my taxes are so high!

You can get a mortgage of £300k, higher than I can. You can get £100k discount or £33k given go buy a new home, I got nothing. You have had social help and subsidised rent, I have had to pay full rent before buying with no help. You must earn more than me.

Im with Dan-Dan where words fail me too.

Andypandyboy

I suspect this is hypothetical question in the light of the upcoming budget.

If it is true though that there are those out there in this situation - I can understand the discount on buying the house, but I think the £33,000 of taxpayers money is outrageous, then it is a good discussion point.

Nick_C

If you can bear it, OP, buy with the £100K discount and stay another 5 years. Then sell and buy something decent in the private sector.

As to the morality of this, you are entitled to it and you would be a fool not to take advantage of it.

I do agree that Right To Buy is a stupid scheme that is creating a shortage of social housing. But the £33K bounty that this local council is offering to relinquish the tenancy makes good economic sense, compared to selling the house for £100K less than market value. The council gets an extra house for £33K. What would it cost to build one?