You are stupid if you buy a house now and you're under 40 (or wait for £60k - £100k)

fairy_lights

Even if this 20% discount to first time buyers does become reality, not everyone wants a newbuild or is prepared to pay the premium for a brand new property.

Eye2013

tomtontom wrote: »

Will it, where does it say that? The property will need to be valued for mortgage purposes, but that will be based on the "discounted" price not the full value - this is not a deposit replacement scheme.

If you think it's such a great idea then go ahead and buy one for someone. We'll be happy to hear your update in five years time [/QUOT

The valuations will work the same as help to buy. See also http://www.new-homes.co.uk/starter-homes-qa/
I can't buy - I'm over 40. Unfair !

freeisgood

The prices for new builds around our way are eye watering...way over priced houses...crowded together and tiny rooms....houses in the next street are 50% bigger for 50% less.

Eye2013

freeisgood wrote: »

The prices for new builds around our way are eye watering...way over priced houses...crowded together and tiny rooms....houses in the next street are 50% bigger for 50% less.

Maybe my OP should have been 'You are Stupid if you buy a NEW house...'
Mind you, I am often amazed what new houses go for compared with sh - they still sell.

Eye2013

Eye2013 wrote: »

tomtontom wrote: »

Will it, where does it say that? The property will need to be valued for mortgage purposes, but that will be based on the "discounted" price not the full value - this is not a deposit replacement scheme.

If you think it's such a great idea then go ahead and buy one for someone. We'll be happy to hear your update in five years time [/QUOT

The valuations will work the same as help to buy. See also http://www.new-homes.co.uk/starter-homes-qa/
I can't buy - I'm over 40. Unfair !

Also - the mortgage valuation WILL be at the full open market value, but there is likely to be an upwards interest rate adjustment because if the purchaser defaults within 5 years the lender would be unable to get the full market value on any repossession

chelseablue

I wish they wouldn't keep inventing all these 'scheme's' its just a way of propping up the housing market, plus there's usually a catch


Why can't people save up a decent deposit and buy a house in the traditional way

cloo

What's stupid is the government putting all their eggs in the basket of stimulating more first time buying rather than also looking at rental tenures, genuine affordability (eg linked to earnings) and creating homes that older people in 3+ bed properties want to move to (plus incentives for them to downsize), thus opening up family homes to younger people.

Jhoney_2

cloo wrote: »

What's stupid is the government putting all their eggs in the basket of stimulating more first time buying rather than also looking at rental tenures, genuine affordability (eg linked to earnings) and creating homes that older people in 3+ bed properties want to move to (plus incentives for them to downsize), thus opening up family homes to younger people.

They haven't got a cloo what they are doing!

OP, do you per chance work for the gov and aim to shape policy via this forum? If so, it's a very good starting point and I applaud your initiative,

bouicca21

I think OP might be close buddies with someone called George - or, heaven forfend, George himself.

Eye2013

He he yes I work in the housing sector.
No my name is not George. In fact I think that Starter Homes are a terrible policy as they are hugely unfair and funded by the taxpayer.
I suppose I wanted to make more people aware of it, and point out the potentially significant benefits to the few that might be able to afford it.
I am surprised at the lack of knowledge and understanding of the policy, and I would have thought that MSE would have picked it up before now.