Saving a deposit

dlynch9

Hi everyone, i'm currently doing some research on the barriers to saving a deposit to get on the property ladder, and possible solutions.

I'd really appreciate if you could fill out the survey below (Only 10 questions)

surveymonkey.com /r /SL8TTC3


Thanks in advance.

dlynch9

Oh and for link to work please copy into address bar and remove the gaps Thanks

dlynch9

Thanks to all those who took part

megaginge

Why does "What is your current living arrangement" not have home owner on it? Only rent, parents or other ??? Do you intend only people currently not owning to fill this in? You didn't make that clear ..

tiger_eyes

dlynch9 wrote: »

Hi everyone, i'm currently doing some research on the barriers to saving a deposit to get on the property ladder, and possible solutions.

megaginge wrote: »

Why does "What is your current living arrangement" not have home owner on it? Only rent, parents or other ??? Do you intend only people currently not owning to fill this in? You didn't make that clear ..

Why would a person who already owns a house need to save up a deposit to get on the property ladder?

HappyMJ

megaginge wrote: »

Why does "What is your current living arrangement" not have home owner on it? Only rent, parents or other ??? Do you intend only people currently not owning to fill this in? You didn't make that clear ..

Other (please specify)

then type "Home owner"

The survey looks like it meant to be for people that do not own a home already. are saving for a deposit to buy a home and seeks to know what they are doing or would potentially do to reduce current accommodation costs to achieve that goal.

dlynch9

Hi,

Thanks again to everyone who took part, i really had more reply's from here than i'd expected.

In answer to the above, yes the survey wasn't designed for people who already own a home, but those who are hoping to own one one day.

As expected the main barrier to most is saving money as most of us are currently paying rent/bills/debts, looking after family etc

Interestingly nearly everyone would not be prepared to live in either shared accommodation / log cabin / caravan / micro home, in order to help save for a deposit. The main reasons being to small, low quality, cleanliness, privacy, facilities, security, pets.

So..

Here was the plan and obviously early stages but appreciate any comments.

I get frustrated with paying rent year after year and getting nothing back. The idea was that you could effectively lease a dwelling for 5 years and at the end you could either sell back for £10k (nice deposit) OR continue living there rent free.

For example -

Rent Year 1 - £8,000
Rent Year 2 - £8,000
Rent Year 3 - £8,000
Rent Year 4 - £8,000
Rent Year 5 - £8,000
Rent Year 6 - £0 or Sell Back for £10,000

The company/home owner makes £30,000 and retains the house, and the Renters get £10,000 to use for deposit. Obviously, if less rent is paid then less deposit is returned.

If we can build/acquire accommodation that is not to small, clean, high quality, private, secure and allows pets then we may be able to persuade people. The cost of construction and land costs need to be taken into consideration so the company is profit making.

Any way lots to think about but thanks again for those who took the survey, and look forward to any comments.

AnotherJoe

The cost of construction and land costs need to be taken into consideration so the company is profit making.
====
If they make profits then rents will be a similar price to those in the local area so your scheme would make no difference. And who can commit to a scheme like this for five years? What happens if they move out after one?

The company/home owner makes £30,000 and retains the house, and the Renters get £10,000 to use for deposit.

Well, there's your flaw. They dont make £30,000. They receive an income of £30,000.Very different things.

Your theory is predicated upon the fact that for those people who are "not prepared to live in either shared accommodation / log cabin / caravan / micro home" there must be another solution. But, maybe, there isn't one.

mrginge

dlynch9 wrote: »

I get frustrated with paying rent year after year and getting nothing back. The idea was that you could effectively lease a dwelling for 5 years and at the end you could either sell back for £10k (nice deposit) OR continue living there rent free.

For example -

Rent Year 1 - £8,000
Rent Year 2 - £8,000
Rent Year 3 - £8,000
Rent Year 4 - £8,000
Rent Year 5 - £8,000
Rent Year 6 - £0 or Sell Back for £10,000

The company/home owner makes £30,000 and retains the house, and the Renters get £10,000 to use for deposit. Obviously, if less rent is paid then less deposit is returned.

If we can build/acquire accommodation that is not to small, clean, high quality, private, secure and allows pets then we may be able to persuade people. The cost of construction and land costs need to be taken into consideration so the company is profit making.

Any way lots to think about but thanks again for those who took the survey, and look forward to any comments.

I'm not sure I get it.

So the tenant pays 40k, which is a combination of 30k rent and 10k refundable deposit.
If they have the income to support that then why wouldn't they rent somewhere for 30k, stick 10k in a help to buy isa and earn interest/bonus?
Will you pay them interest as well?
Is the net 30k an appropriate rent for the property?
Is it possible to buy, build and maintain these properties for 30k less your profit?
How does this 'continue living there rent free' concept work?
Does it mean after five years you will grant a lifetime assured tenancy under which you will continue to maintain the property? Or will you just sign the property over to them?

The plan looks confused. What are you trying to achieve? Providing cheap rental properties, or providing a saving scheme?

Pixie5740

You do get something when you pay rent. You get a roof over your head. You don't need to worry too much about maintenance and repairs. That's not to say I don't think the private rental sector across the UK could be improved.

arbrighton

Pixie5740 wrote: »

You do get something when you pay rent. You get a roof over your head. You don't need to worry too much about maintenance and repairs. That's not to say I don't think the private rental sector across the UK could be improved.

Yeah, I miss that about renting- the ability to ring the landlord, say x not working and then just be in at an arrange time. Far far more hassle when it's your own home.