1st time buyers, looking at a SHARED ownership property.

Running_Horse

Most of Kent does not cost upwards of £300,000 for a basic FTB house.

You could get something for half that if you can commute to Medway.

Or stay with the folks and keep saving.

Planet_Switzerland

My view is that all these schemes to help people on the property ladder, pay their mortgages etc are a con and its best sticking to the traditional mortgage if you can.


Saying that, there is an ex work colleague of mine who is an econometrician and is always thinking about ways of making money etc. He bought a four bed in London for his first property on a shared ownership, which I thought was barmy. But he doesn't seem the sort of person who would do something like that without doing the maths first.


So I guess if you do the maths and know what your doing and find a way for it to work for you then go for it. Personally I wouldn't do it myself.

Kynthia

Shared ownership is only good for those who desperately need to stay in an unaffordable area and need more security that renting gives them, they'll never own a whole property otherwise and tgry aren't looking to move for at least 5 years if not much more. For example key workers in London with children in local schools. Anyone else should save longer, buy something smaller, continue to rent, or move somewhere cheaper.

I lived in my OH's SO property for years and it was lovely living in a bigger place with a garden but selling was a nightmare and dragged on for well over a year. They left the place unmortgageable for a long time due to works that needed doing but they never got around to doing so. We were trapped as we couldn't even let the place as it's against the lease yet we desperately needed to move by this point. There were lots of problems with the building and then they valued the property low for selling so very little equity was made after 8 years. Their conveyancing made the sale, when we could sell, shockingly slow and difficult. It's hard to say if it was worth it but I'd always be wary of buying somewhere I couldn't let now that I know what being trapped somewhere is like.

If the property isn't a resale then it's likely to be overpriced and you'll make less when you sell. I don't know why so many want to staircase. I think rather than pay all those conveyancing and survey costs multiple times, save your money and use it to move into a new property when you can.

Philuk

csgohan4 wrote: »

OP , it's not just me mentioning about the SO and it's pitfalls. Obviously a bunch of internet strangers cannot tell you what to do, but do what you want, but don't be so naïve thinking buying a Shared ownership property will be a step on the property ladder.


In fact the ladder if you go through this route will be not what it seems and SO are difficult to sell than mainstream non SO houses/flats.


You have been warned. Owning a property by any means is a recipe for disaster. Especially when you want one for the sake of owning on.


I hope if you get a SO it goes well for you, but there have been plenty of SO disasters over the years on here that makes me wonder.


Some posts to consider:


https://forums.moneysavingexpert.com/discussion/3177256


https://forums.moneysavingexpert.com/discussion/5497182

Don't dismiss SO by principle, there are some horror stories for any kind of purchase, good and not so good scheme and most importantly a product that may suit one's circumstance but be an equity trap for another buyer.

I do agree with you that the OP doesn't seem sufficiently informed and would probably take a punt on the property mentioned. Now, assuming, she absolutely want to leave her parents house, a monthly payments might be inferior through a SO than purely renting privately, knowing that will come at the cost of putting a deposit, and be liable for the maintenance cost of the property (which should be next to 0 if it s a new built).

I don't think the ladder myth with hold his ground much longer, and certainly not for OP generation.

dirty_magic

There are loads of much cheaper houses within 10 miles of Tonbridge. Could you not extend your area a little? You don't have to move up north. Is Maidstone or Sevenoaks too far?

marksoton

MonsterST wrote: »

Because I hardly see how a small two bed house with a tiny garden is setting your sights high and that it should be seen as unreachable?!

After three years in a flat I'm not prepared to live in one again, absolutely hated it.
Getting better paid jobs, easier said than done if it was that simple I'd be minted.

Again a two bedroom house that is smaller than most two beds is a mansion? Jesus this country is ruined.

As you said you can trade up, is the SO scheme really that bad where you couldn't trade up in X amount of years, these are the questions I'm asking but all I'm getting is I should move 5 hours away from where my whole life is based and get a cheap house up north. Fantastic.



wow.



Thanks for a good post. I totally understand, we've been together for 10 years, lived together for three. It is dam hard coming away from your life and moving back in with your parents.

Our families will not be moving, they're set where they are. Neither have much money either so there is no bank of mum and dad sadly for us!

I have read some negative stories, but they haven't seen that bad from what I've read, other than the absolute one of nightmares!

Sadly doubt either of us will be likely to change jobs, I've been a postman since I left school, whilst it was obviously not what I dreamed off, it's decent money for unskilled work. Fair bit of overtime too.

We also have the help to buy isa which we started this year which will be some help as it's free money!

I don't feel nor actually want to settle for a one/two bedroom flat, as said been there for three years and it ended being an absolute nightmare.

There are other properties around which we'd be more than willing to settle with, 2 bedroom 280-360k. So trying to figure out if we do a full mortgage on one of those, or the SO on a different property. Was trying to find pros and cons off both as from what I've mostly read it's supposed to help you get on the ladder, find a property that is half decent and out of your budget if you had to do a full mortgage and has the possibility to buy it fully in years to come.

Hope it all works out for you though, it is a dam nightmare and I'm stressing big time, don't think sadly coming here has helped much though to be honest.

So you're not going to change jobs, won't change location and won't compromise on the property.

How exactly are you expecting to staircase? With what funds when you're paying a mortgage,rent,bills and maintaining the whole property even though you only own 35% ?

The maths simply does not add up.