Shared Ownership - A Scam???

AdrianC

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.

John-K wrote: »

How is that a scam?

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.

<scratches head>
Is it me, or is Crashy really arguing in favour of 100% mortgages?

John-K_3

AdrianC wrote: »

<scratches head>
Is it me, or is Crashy really arguing in favour of 100% mortgages?

There seem to be a free people confusing themselves in this thread. It’s often the way when a couple of posters decide to use words (like scam) in ways that no-one else understands them.

Crashy_Time

John-K wrote: »

There seem to be a free people confusing themselves in this thread. It’s often the way when a couple of posters decide to use words (like scam) in ways that no-one else understands them.

Like you just did there you mean? A scam is when people with more knowledge of a situation (bankers) sell loans or other products to people with much less knowledge (general public) and promote the idea that for various reasons the asset you are borrowing against can only go up in price. Hard to argue that that idea has not been presented continuously in the media, until recently that is While all the while central bank intervention was needed to head off a crash......If that isn`t a scam I don`t know what is :rotfl:

Crashy_Time

AdrianC wrote: »

<scratches head>
Is it me, or is Crashy really arguing in favour of 100% mortgages?

No I am arguing in favour of letting market forces re-balance the housing market. Rates rising and Brexit should hopefully do it

LookingTo

Crashy_Time wrote: »

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

I don't understand why you think that?

If your renting every penny you spend on rent you never get back no matter what. If you buy a SO then your likely to get back atleast what you paid in after an extended period. Even if it went down in price and you got back less it's much better than getting back nothing when renting.

Crashy_Time

LookingTo wrote: »

I don't understand why you think that?

If your renting every penny you spend on rent you never get back no matter what. If you buy a SO then your likely to get back atleast what you paid in after an extended period. Even if it went down in price and you got back less it's much better than getting back nothing when renting.

Very unlikely if interest rates start rising IMO.

lena_halo

I have 40% shared ownership flat that I'm just selling now. I've made £28,000 equity in 5 years - no way I could have saved that by myself in that time. Worked for me

Crashy_Time

lena_halo wrote: »

I have 40% shared ownership flat that I'm just selling now. I've made £28,000 equity in 5 years - no way I could have saved that by myself in that time. Worked for me

Was the buyer happy with the price, or did they haggle? Did you get a discount on your new place as you are treating this money as "savings"?

Sunflower12

Don’t get involved with Housing Association Shared Ownership Scheme. It has helped me to read other people have had to
same negative experiences as myself. My service fee went up by £100 per month in 2017/2016 and this year a further increase of £53 per month. The Housing Association. My block and ground are in a terrible state of disrepair. The communal areas and carpets have not been upgraded in 17yrs since I bought my flat as new. The Housing Association does not show you a breakdown of what you are paying for. The service fee inc rent has tripled since I bought my flat 17 yrs ago. I cannot plan for the future as the increase in fees is substantial. You don’t seem to have any rights. I am hoping that someone will read these posts and that the Housing Association Shared Ownership Scheme will be exposed one day.

Crashy_Time

LookingTo wrote: »

I don't understand why you think that?

If your renting every penny you spend on rent you never get back no matter what. If you buy a SO then your likely to get back atleast what you paid in after an extended period. Even if it went down in price and you got back less it's much better than getting back nothing when renting.

Rent is a monthly cost and you can move whenever you want, and repairs are done by the landlord, it is completely different to being tied to a massive loan against an asset you can`t sell in a downturn while still having to pay for your own repairs/replacements. The sensible renter saves/invests more than their rent each month but I get the feeling that the average SO borrower doesn`t know much about investment. Just my opinion.