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You are stupid if you buy a house now and you're under 40 (or wait for £60k - £100k)
Options
Eye2013
Posts: 63 Forumite
The Governments Housing and Planning Act has now become law which means that subsidised starter homes for those under 40 will be coming through in 12 or 18 months time. This basically offers new homes at a minimum 20% discount to first time buyers. See http://www.new-homes.co.uk/starter-%20homes/
Outside London the maximum purchase price after discount is £250k, meaning a subsidy of up to £62,500.
Within London the maximum purchase price is £450k meaning a subsidy of up to £112,500 !
The detailed rules around this are still being worked up but it looks likely that from October all new residential planning developments will usually have to have a minimum of 20% starter homes (some sites will offer more). The purchasers are likely to be able to what they like with the house after 5 years of ownership meaning you keep the subsidy !
Sell the house and use the profit to trade up, or sell and buy a Lamborghini ! (probably a used one though).
You can also double up with the separate 'Help to Buy' programme.
I say fill your boots or buy some for the kids ! Get your trotters in the trough. Lovely if you can afford it.
But obviously if you're under 40 its not worth buying now !
Outside London the maximum purchase price after discount is £250k, meaning a subsidy of up to £62,500.
Within London the maximum purchase price is £450k meaning a subsidy of up to £112,500 !
The detailed rules around this are still being worked up but it looks likely that from October all new residential planning developments will usually have to have a minimum of 20% starter homes (some sites will offer more). The purchasers are likely to be able to what they like with the house after 5 years of ownership meaning you keep the subsidy !
Sell the house and use the profit to trade up, or sell and buy a Lamborghini ! (probably a used one though).
You can also double up with the separate 'Help to Buy' programme.
I say fill your boots or buy some for the kids ! Get your trotters in the trough. Lovely if you can afford it.
But obviously if you're under 40 its not worth buying now !
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Comments
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The 20% subsidy will only really make up for the premium placed on buying a new build. Add the to the fact in the SE (where I am) £250k will barely buy you a new build shed I don't really see the appeal.0
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I think you're stupid if you think the government is actually going to give thousands of people a 20% discount on a house with no strings attached.0
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Its already happening !Deleted_User wrote: »I think you're stupid if you think the government is actually going to give thousands of people a 20% discount on a house with no strings attached.
I suppose its similar to a council house purchaser buying their house at a discount0 -
Yes there is a small premium on new build - varies depending on location. Even if you buy a flat then you can still keep the subsidy value going forward and any uplift in vale.The 20% subsidy will only really make up for the premium placed on buying a new build. Add the to the fact in the SE (where I am) £250k will barely buy you a new build shed I don't really see the appeal.0 -
They will be overvalued by 25%. They'll be highly valued due to location on old no longer used industrial land close to town. The land itself will most probably be awful land surrounded by newer industrial units. Probably a good location if you work in the industrial estate.
No thanks.
New builds always depreciate in relation to inflation. Instead of increasing by 4% as all other properties might do they might increase by just 1%. Over 5 years that's going to make a big difference....but bonus is not much will need to be spent in maintenance over those 5 years.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
OP you need to read the detail of the scheme, it's not what you are claiming it is.
https://www.gov.uk/government/news/young-first-time-buyers-can-register-online-for-100000-cut-price-homes
The only winners, as ever, will be the builders.0 -
Doesn't apply in Scotland or NI.
Only for first time buyers.0 -
They will be overvalued by 25%. They'll be highly valued due to location on old no longer used industrial land close to town. The land itself will most probably be awful land surrounded by newer industrial units. Probably a good location if you work in the industrial estate.
No thanks.
New builds always depreciate in relation to inflation. Instead of increasing by 4% as all other properties might do they might increase by just 1%. Over 5 years that's going to make a big difference....but bonus is not much will need to be spent in maintenance over those 5 years.
The location will be reflected in the valuations. Not sure where you get your other figures from.0 -
OP you need to read the detail of the scheme, it's not what you are claiming it is.
https://www.gov.uk/government/news/young-first-time-buyers-can-register-online-for-100000-cut-price-homes
The only winners, as ever, will be the builders.
Where are you suggesting my OP is wrong ?0
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