First time buyer / 'victim' / cannon fodder? :)

adam1001

Hi there,
New on these here boards, and plan on sticking around - you guys seem as sound as the pound(s) you save! lol.

Now, I was wondering if anyone could give some advice/their opinion on my situation.

I am a single, 22 year old chappy with a fulltime job earning £17500 a year (or £1100 a month net) looking at the whole house buying thing. With my low wage, I cant really afford to buy out-right so have been looking at Shared Ownership. I know reading these forums, some have good and bad points about these but looking at the situation, I dont really see any other way of getting on.

I have also saved up around about 10k but I am not sure how far my money will go. I have looked at properties 50% SO for 75000 or there abouts, and seem okay-ish.

I just wondered if anyone had any views on shared ownership in light of my situation, and also if I would be better off waiting for this supposed crash that will bring prices down so that I might get more for my hard saved money?

Any thoughts would be ace and thank you for having me!

Adam

Guy_Montag

I would say that you're about to buy at the peak of the market, but then I thought the same in Cambridge in 2000 (for local reasons); & again in 2005.

Regardless of my previous predictions, generally I can't help feeling SO is a bad idea. If you are going to do it see if you can find an established property rather than a new build.

Finally check out auction repos, see what you could get.

SquatNow

Can I suggest you save yourself a lot of time, hassle and heartbreak and simply put £700 in a waste paper basket each onth and set fire to it.

Sounds extream but it's far less hassle than Shared Ownership and slightly cheaper.

Your best top keep saving and wait out the crash.

the_other_mce

Hi there - my friends bought a shared ownership house with the local authority and did very well out of it. The lived in it for 7/8 years and it made them enough money to buy a much bigger house when they moved. No-one knows for sure how the housing market will go. If you intend to live in your house for a good few years and would otherwise be paying rent to someone else I would say GO FOR IT. If house prices fall you will be in the same boat as everyone else and they will go back up again eventually.Plus if you can overpay on your mortgage and the house prices fall you might be able to buy further shares in your house at a cheaper price...... prices will always go up in the long term and your mortgage debt will lessen. Good luck ....

Sapphire

SquatNow wrote: »

Can I suggest you save yourself a lot of time, hassle and heartbreak and simply put £700 in a waste paper basket each onth and set fire to it.

Sounds extream but it's far less hassle than Shared Ownership and slightly cheaper.

Your best top keep saving and wait out the crash.

Yes, you are still young and don't need the hassle of owning a property at your age. Save as much as you can while enjoying life. Don't be bamboozled into the idea that you absolutely must be a property owner as a mark of success (or whatever).

Personally, my gut feeling is that there is going to be a massive property crash (and probably a big downturn in the economy) sooner or later because of the amount of debt people are in and other factors. That's just a personal opinion, though. :cool:

globalds

The last time I saw people discussing shared ownership ...seriousley ...was the last time the market was overpriced ..late 80's...
I'm not clever enough to be able to prove there is a link.....But my reality check is that a house is an article designed for a single unit to occupy ,be that an individual or a familly..when it is being offered as a shared item ..it may be because it is overpriced ..
No one really wants to share a house.

SquatNow

It's also the opinion of the world top economic experts.

niceguyed

Sapphire wrote: »

Personally, my gut feeling is that there is going to be a massive property crash (and probably a big downturn in the economy) sooner or later because of the amount of debt people are in and other factors. That's just a personal opinion, though. :cool:

Given the cyclical nature of the property market I see you're going out on a limb Most crash predictors just fail to mention "when" exactly. Anyway, that's a thread that's been done to death a thousand times over.

I agree with the other posters. I presume you mean shared ownership like a housing association scheme. Problem is you get your mortgage and then your 50, 60 or whatever % ownership and you still have to factor in paying rent to the housing association for the remainder. Of course, you could mean shared such as buying with a friend or family member. Then you have the hassle if one wants to sell and the other doesn't plus the purchase decision may end up being a compromise. It's far cheaper to rent at the moment. I'd bide my time and keep tucking money away maybe doing the stuff I could no longer do once saddled (well, with added difficulty anyway) with a mortgage and bills. Personally, I've seen some ex local authority leaseholds with extortionate service charges because they are falling apart.

Hey, you're 22, go travelling, live life a bit, prices are stabilising and even falling in some cases. I'd be inclined to wait in your situation.

adam1001

Hi guys! Thank you so much for the responses! Some ace points here, and I am happy to take people's experience on board! As much as I would love to own my own place, it sounds as if I would be better off waiting it out. Even then, I guess I would be no worse off then if I did decide to take the plunge! Thank you

m00m00

one thing that's clear
even if there is no crash, house price inflation in the next 12 months is likely to be less than the amount you can earn in interest on your savings in percentage terms.

hearts

SquatNow wrote: »

Can I suggest you save yourself a lot of time, hassle and heartbreak and simply put £700 in a waste paper basket each onth and set fire to it.

Sounds extream but it's far less hassle than Shared Ownership and slightly cheaper.

Your best top keep saving and wait out the crash.

Sir, in practically every reply you give. You either mention or hint at a crash. What crash is this? We have been hearing of this for years and I haven't seen one yet! The market has been nervous of late but still no sign of a crash. A probable interest rate cut soon could well see the market moving on to new heights. Im not saying this would be right or wrong but its a very possible scenario.