HTB - Have you lost/made money?

luis1988

Hi!

Am just about to put in a mortgage application for our HTB new build.

As it has been around a few years now, I wondered if anyone could share some experience on whether they have made or lost significant amounts of money?

We managed to get a lot of money knocked off the asking price so feel fairly confident we will at least be breaking even when we first move in.

Any experiences would be great to hear! Thanks !

marksoton

HTB is designed to provide you with a home, not an investment.

csgohan4

marksoton wrote: »

HTB is designed to provide you with a home, not an investment.

Correction, my taxes is designed to provide you with a home, not an investment.

luis1988

I'm only asking of people's experiences, rather than whether this is a good investment or not.

As it stands, and for a considerable amount of time, this is our only route into home ownership, rental prices around here barely allow us to save quick enough.

I just wanted to hear some real-world examples of how H2B has helped or hindered people long term..

iantojones40

Correction, your taxes are designed to provide a builder with a nice fat profit on an overpriced newbuild whilst simultaneously sucking in a naive, gullible FTBer into a lifetime of debt.

Jon_B_2

We bought (reserved) back in Jan 15 for £275k using HTB.

Second hand equivalent properties are selling at £300k now. I honestly don't want prices to go up much more as it all does is increase the amount I owe the government. If prices stayed at £300k, my £55k owed would go up to £60k.

Plan is to remortgage when 5 year fix ends and repay the HTB equity loan.

AdrianC

luis1988 wrote: »

I'm only asking of people's experiences, rather than whether this is a good investment or not.

I must've misunderstood the thread title and...

luis1988 wrote: »

I wondered if anyone could share some experience on whether they have made or lost significant amounts of money?

My mistake.

As it stands, and for a considerable amount of time, this is our only route into home ownership, rental prices around here barely allow us to save quick enough.

I just wanted to hear some real-world examples of how H2B has helped or hindered people long term..

It's helped them to buy a house when they couldn't otherwise have done so.

Jon_B_2

AdrianC wrote: »

I must've misunderstood the thread title and...


My mistake.



It's helped them to buy a house when they couldn't otherwise have done so.

No - they are able to afford mortgage repayments, but their rental is overpriced the ability to save a worthwhile deposit is pretty much impossible. A notion boomers and such like will never grasp.

AdrianC

Jon_B wrote: »

No - they are able to afford mortgage repayments, but their rental is overpriced the ability to save a worthwhile deposit is pretty much impossible.

Like I said - when they couldn't otherwise have done so.

Why you believe they couldn't do so is beside the point.
You may think it's because high rent means they can't save, while other people may disagree and suggest an inability to save is related to an inability to prioritise and control unnecessary expenditure. <shrug>
You may think they can afford mortgage repayments, others may point to the historically low interest rates and how the 2008 crash has led to stronger tests of the ability to repay, and the problems with very high LTV lending.

marksoton

Jon_B wrote: »

No - they are able to afford mortgage repayments, but their rental is overpriced the ability to save a worthwhile deposit is pretty much impossible. A notion boomers and such like will never grasp.

Indeed. So why question the investment value? If it's a home that's irrelevant...

littlegreenfrog_2

AdrianC wrote: »

Like I said - when they couldn't otherwise have done so.

Why you believe they couldn't do so is beside the point.
You may think it's because high rent means they can't save, while other people may disagree and suggest an inability to save is related to an inability to prioritise and control unnecessary expenditure. <shrug>
You may think they can afford mortgage repayments, others may point to the historically low interest rates and how the 2008 crash has led to stronger tests of the ability to repay, and the problems with very high LTV lending.

I don't know who you are, but from your posts I'm guessing you are probably the baby boomer generation.

Attitudes like this are precisely why the young are starting to resent - and even loathe - your generation. You have collectively accumulated what we see as enormous wealth, simply from being in the right place at the right time. But rather than having the good grace to say, "yes, we were lucky and it's tough being a young person today", you suggest that we're an entitled generation who want something for nothing, don't understand the true value of money and simply don't have the work ethic and self-restraint that people like you obviously had when you were our age.