Shared ownership or old house?

Hollie92

Hello, just looking for some advice please. Myself and my husband are hoping to buy our first home. We are on a tight budget so our options are limited and we could use some outsider opinions please.

We can afford a new build house on a new estate. It’s an affordable housing home with it being shared ownership (25% for £40,000). It’s in a fantastic area of town, it’s an ideal location and way out of our budget to purchase in this town otherwise (we currently rent in this town).

Our second option is to purchase an ‘old’ house, £70,000 for the entire home. It’s in a town close by but it’s not a very desirable place to live. The town itself has a really bad reputation and the area of this house especially isn’t great. Someone got murdered there only a few months ago and the police are always there for drug raids and antisocial behaviour.

Both homes are decent sized with three bedrooms. The new build has a drive with enough space for two cars and the old house has street parking. The new build has a nice garden but the older home has a really small concrete area, it reminds me of a prison cell. The new build is by far a nicer home in a nicer area but we would probably never own 100%. We are really torn, any help would be great. Thank you

Joyful

I don't think you have given any reason for going for the old house. It sounds terrible. I would not think you would stay there long term with fear in your head. You would also struggle to sell it on when the time comes.

HampshireH

You don't sound very torn.

Your post sounds like you know exactly what you want.

Why is this old house with a built in prison cell your only other option?

You don't say what your budget is or where you are looking?

Carrot007

I think both are very bad options for you.


The old house sounds to be in a horrible place.


25% share in the current market will cost you a lot should you ever want to move. Many people are trapped by part ownership as the others get to agree the price and are often deluded (or tied to a certain amount). (And remember 25% is not buying your first home, you would be better off renting).


Can you not move out of town to a nicer area and buy a house?

[Deleted User]

Normally I would always suggest an older house, but I think in this case you either have to look further afield, save more (delaying buying), or buy the S/O.

Shared ownership does enable people to 'buy' somewhere to live who couldn't otherwise. But they also have disadvantages: -

1) paying rent on the unowned portion can be more expensive than a mortgage would be,
2) there will normally be service charges as well,
3) look into how popular the area is for shared ownership sales i.e. will you have problems selling when you want to,
4) try and find out how good the Housing association is in terms of dealing with clients (there are some who make selling a house or staircasing quite difficult).
5) There are usually restrictions on what you can do with the property.

Hollie92

Our budget is no more than £70,000 and for that price it would be shared ownership on a new build or an older home in a worse area. There are three older homes we can afford, all three are in the same town in equally bad areas, all three are located in bad areas. If anything else pops up it’s likley to be the same situation. A new build is in a great area and it’s a beautiful home but we have heard mixed things about shared ownership and we’d likely never own 100%

Carrot007

I doubt it will be a good area in the long run from t he sound of it.


Save more or move further out. Depending on where you are 10 miles can make all the difference and is nothing.

Marvel1

My first thought was old house as it's better to own 100% than shared ownership. Then I read about the old house.

None of them in my opinion.

Cakeguts

I don't think you will be happy in the long run with any of them. Why is your budget so low? Could one of you get a second job so that you can save for a bigger deposit?

G_M

Agree with all the above. First thought was "no brainer forget the shared ownership". Then read about the old house which is clearly undesirable.


Rent somewhere nice to live and buy some premium bonds. You never know.............

oystercatcher

There has to be another option. Do you need three bedrooms ?
Explore other areas a bit more.

Keep looking, keep saving , maybe a smaller house in a medium type area not as awful as where the old house is but not where the new build is either. Where do other people live who have similar incomes to you ? Look there .

Read this forum inside out to maximise was of saving money!