We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Shared Ownership strategy on New Build Premiums
cjv
Posts: 513 Forumite
I have been looking into shared ownership recently as a potential route as a first time buyer.
This got me thinking, will it make financial sense to buy the smallest possible share on a new build until the new home premium dissipates and then staircase? even if you can afford a much larger % at the initial purchase, or will the rent part you pay before increasing your ownership share counter any potential gains from this strategy?
This got me thinking, will it make financial sense to buy the smallest possible share on a new build until the new home premium dissipates and then staircase? even if you can afford a much larger % at the initial purchase, or will the rent part you pay before increasing your ownership share counter any potential gains from this strategy?
0
Comments
-
This is difficult to really answer as there are so many variables.
As you say, the amount you pay in rent might negate any saving. You will also have potentially rising property prices (and if these rise at a higher rate than the !!!8216;new build premium!!!8217; wears off then you will be out of pocket). You!!!8217;ve also got potential legal and admin costs every time you staircase.0 -
This is difficult to really answer as there are so many variables.
As you say, the amount you pay in rent might negate any saving. You will also have potentially rising property prices (and if these rise at a higher rate than the !!!8216;new build premium!!!8217; wears off then you will be out of pocket). You!!!8217;ve also got potential legal and admin costs every time you staircase.
Good points, interesting. I would not let this affect my decision on how much of a share to buy it is just something I was pondering. I think it will always be a gamble if considering this strategy akin to trying to time the stock market.
With plans to stay in a home for a long time I would just chuck my money in at a comfortable share and hope for the best0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245K Work, Benefits & Business
- 600.6K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards