Shared Ownership - A Scam???

LookingTo

It is 3% of the share you are selling aswell but if estate agents are 1% then it is abit high. So that is probably the biggest negative to the one in getting but considering I don't pay rent on the other part I don't think it's too bad overall.
Aslong as I stay there for a good number of years, which I'm planning to, then it shouldn't be too bad.

But it's a good point to make so I might try and renegotiate the fee and see if I can get them to bring it down to around 2%.

deFoix

NineDeuce wrote: »

The typical dumb response. One person suggests the housing market is broken. The respondent implies North Korea.

Why is my response “dumb”? You haven’t explained your reasoning. Actually, one person suggested that there was some kind of “scam” in the housing/rent market in general.

If, as you say "We live in a free society with right to own property" then can you see how you are totally contradicting yourself. Try telling the millions who struggle to pay rent (i.e. pay off the mortgage of a richer landlord) let alone save for the massive deposit which previous generations didnt have to do, that there is a right to own property. Perhaps you could even campaign for it....

No. I don’t see how I’m totally contradicting myself; please elaborate. People have always struggled to pay rent - sometimes more than other times - so what? And it depends what you mean by struggle. In some sense, the poor have it a lot easier than in the not too distant past. What do you suggest as an alternative housing system?

If you have any sense, you will realise how silly that sounds. Otherwise, continue believing that migration is the root of all evil, pretending that an increase in the population of around 5-10% has pushed house prices up by about 300% in the past 30 years... Bogus comment....

Don’t mischaracterize me. I did not say migration is the root of all evil or even imply any such thing. The simple fact is that there is market forces at work based on supply and demand. Yes the increasing population (largely caused by net migration) has contributed to price rises.

NineDeuce

Boler1985 wrote: »

Why is my response “dumb”? You haven’t explained your reasoning. Actually, one person suggested that there was some kind of “scam” in the housing/rent market in general.

Actually the very next sentence completely explained this, but for the benefit of people only capable of reading about 5 words..... North Korea... relevant? No....

Boler1985 wrote: »

No. I don’t see how I’m totally contradicting myself; please elaborate.

Perhaps you are actually incapable of reading. Try again. You think that everybody has the right to own a property but then you argue that people struggle to pay rent and cant afford a house. So which is it? People have a right? Or people dont and so just have to struggle and rent?

Boler1985 wrote: »

People have always struggled to pay rent - sometimes more than other times - so what? And it depends what you mean by struggle. In some sense, the poor have it a lot easier than in the not too distant past. What do you suggest as an alternative housing system?

Boler1985 wrote: »

Don’t mischaracterize me. I did not say migration is the root of all evil or even imply any such thing. The simple fact is that there is market forces at work based on supply and demand. Yes the increasing population (largely caused by net migration) has contributed to price rises.

'Market forces' which dont stack up, so that is just baloney. Again, I repeat. House prices have gone up over 300% since the 80s. The population increase hasnt. Inflation doesnt explain this either.

And there ARE more houses than before, so this makes even more of a mockery of the supply and demand claim. So does the fact that home ownership is at its lowest. Why might that be? Because they are a no-brainer for BTL investors who can take advantage of the fact that people, well, struggle to pay rent, let alone save a deposit.

But no..... look over there!!!! It's the fault of immigration!!!

deFoix

NineDeuce wrote: »

'Market forces' which dont stack up, so that is just baloney. Again, I repeat. House prices have gone up over 300% since the 80s. The population increase hasnt. Inflation doesnt explain this either.

And there ARE more houses than before, so this makes even more of a mockery of the supply and demand claim. So does the fact that home ownership is at its lowest. Why might that be? Because they are a no-brainer for BTL investors who can take advantage of the fact that people, well, struggle to pay rent, let alone save a deposit.

But no..... look over there!!!! It's the fault of immigration!!!

Just think about what you are saying for one minute. If all of these BTL investors are taking advantage as you say and buying up all of the houses then surely there should be a flood of rented property on the markety pushing rents down... If what you say is true then why don't we see this or are you suggesting there is some kind of cartel in place between all BLT landlords?

Crashy_Time

LookingTo wrote: »

I've seen on here alot of people refer to shared ownership as a Scam, but why?

I'm looking to buy a house and can't afford one at full price due to my wages. So my options are either rent a place or buy around 50% in a shared ownership house.
If I rent I throw away money and never get it back and it's not very secure compared to buying a place as you can be given notice at any time.

I really can't see how it can be considered a scam?

And with SO you invest wisely and get more than you paid back...? :rotfl:SO only works when people think they are buying an appreciating asset, a few interest rate hikes should do away with that myth

John-K_3

NineDeuce wrote: »

The only scam in the housing market is the system overall that requires that you save tens of thousands for a deposit on top of having to pay huge rents.
..

How is that a scam?

John-K_3

NineDeuce wrote: »

Perhaps you are actually incapable of reading. Try again. You think that everybody has the right to own a property but then you argue that people struggle to pay rent and cant afford a house. So which is it?!!!

There is no contradiction there. The right to do something does not necessarily mean that you have to be able to afford it. The right part means that if you can afford it the state will not step in and stop you.

Crashy_Time

John-K wrote: »

How is that a scam?

Because it mainly benefits those lending the money, hence the massive effort over the last few years to stop the debt bubble bursting.

adindas

The system has a good intention. But the people who are operating this scheme might not be.

Now, do your own research, compare the price of 2-3 bedrooms flat with share ownership scheme and approximately the same flats in the same region, in the free market.

If you have done that, you will be able to see why the people often refer it as a scam. But like everyone in this thread has said it is better than renting.

But if you could wait a while and save for a deposit and get the mortgage for the property in the free market it is highly likely you will get it much cheaper.

John-K_3

Crashy_Time wrote: »

Because it mainly benefits those lending the money, hence the massive effort over the last few years to stop the debt bubble bursting.

But that’s not what scam means.