Boris announcement on new deposit scheme?

Comms69

MobileSaver said:

Comms69 said:

you wont be liable for any massive repairs that may come up e.g. new roof.

csgohan4 said:

Repairs, maintenance are not cheap. A new boiler is a few thousands for example. 

While these are common scare tactics amongst the HPC crowd, in 30 years of home ownership I have never had to buy a new roof or a new boiler. It does make you wonder why the HPC zealots are so keen to buy if all they can look forward to is repair bills of thousands or tens of thousands of pounds...

In the interests of transparency, I do know that my brother-in-law mentioned in passing he's had a new boiler installed, apparently it was completely free thanks to government grants!

Ye strangely I dont think that's a good idea. Not sure why the state should be covering anything, but until the system breaks from overuse i cant see it changing. From my perspective the benefits system will hopefully crumble soon. 

Comms69

tim_london said:

csgohan4 said:

if you cannot save money when your renting, your not ready to buy a house. Repairs, maintenance are not cheap. A new boiler is a few thousands for example. 

Depends on circumstances.  A 3-bed rental in London is £1500p/m.  That’s enough for 25year mortgage for a £500k house.  At 5% mortgage, once you’re on the housing ladder you’ll have 75-85% equity in about 5 years.  This is possible with equity loan because you can unlock the lower interest rates.

How is saving a few hundred here and there under the whim of a landlord better?  Or you can wait a few years until you have 10-15% deposit and pay double the interest rate...

Sorry you think you'll pay off 15% equity a year? That's £70k a year n equity...

Angela_D_3

Comms69 said:

tim_london said:

Comms69 said:

Gycraig said:

It’s quite obvious when I said “current scheme” I meant the one that the thread is talking about ...

feel free to enlighten me on how renting someone else house and paying someone else’s mortgage for another year is a safer option

If you lose your job, you aren't going to face a repossession which will ultimately destroy your credit history.
Not keeping up with rent is also disaster to credit report - either way that's a mark for 6 years.
Additionally you wont be liable for any massive repairs that may come up e.g. new roof.
What about liability of being kicked out on a whim of landlord or rent increase?
You also arent tied down in an unstable economic climate to a single area... But you know that's looking at the bigger picture.  Stability of owning a home is not bigger picture?

Look - I would agree it was pre 80s, council house and fallback to housing benefit.  But not today with private rental situation especially with big cities.  I would love to see a govt bring that time back but it ain't happening.

It may benefit only a small % of people, most likely those above average wage.  But it does help.

in order of your points: 
The reality is, if you are unable to pay your rent, the total cost is a month's rent. And you arent tied down to the area. If the landlord takes you to court for lost rent, the amount is minimal and easily settled. 

You cant be kicked out on a whim. Nor can rent simply be increased. So these are just false.

You call it stability, i call it an anchor around your neck (at 95% LTV)

2008 we’d just bought a 4 bedroomed house which we needed with 4 kids.  Ex got made redundant more or less the month after completion.  We stayed in and indeed still own that house.  If we’d have rented,  we’d have chucked been out within 3 months,  we’d have had a CCJ for the rest of the contract,  eviction fees etc and had we found another rental house it would have been in a !!!!!! area and we’d have been entitled to 3 bedrooms and had to pay the £390 difference between housing benefits and the actual rent being charged.  Oh and we wouldn’t have made £120,000 in capital gains since.  

Angela_D_3

Comms69 said:

MobileSaver said:

Comms69 said:

you wont be liable for any massive repairs that may come up e.g. new roof.

csgohan4 said:

Repairs, maintenance are not cheap. A new boiler is a few thousands for example. 

While these are common scare tactics amongst the HPC crowd, in 30 years of home ownership I have never had to buy a new roof or a new boiler. It does make you wonder why the HPC zealots are so keen to buy if all they can look forward to is repair bills of thousands or tens of thousands of pounds...

In the interests of transparency, I do know that my brother-in-law mentioned in passing he's had a new boiler installed, apparently it was completely free thanks to government grants!

Ye strangely I dont think that's a good idea. Not sure why the state should be covering anything, but until the system breaks from overuse i cant see it changing. From my perspective the benefits system will hopefully crumble soon. 

The benefits system crumbled a long time ago,  Rishi was very excited to report yesterday someone on minimum wage would still get 90% of their wages under this new scheme.  Trouble is people weren’t surviving on 100% of them pre covid.  

Comms69

Angela_D_3 said:

Comms69 said:

tim_london said:

Comms69 said:

Gycraig said:

It’s quite obvious when I said “current scheme” I meant the one that the thread is talking about ...

feel free to enlighten me on how renting someone else house and paying someone else’s mortgage for another year is a safer option

If you lose your job, you aren't going to face a repossession which will ultimately destroy your credit history.
Not keeping up with rent is also disaster to credit report - either way that's a mark for 6 years.
Additionally you wont be liable for any massive repairs that may come up e.g. new roof.
What about liability of being kicked out on a whim of landlord or rent increase?
You also arent tied down in an unstable economic climate to a single area... But you know that's looking at the bigger picture.  Stability of owning a home is not bigger picture?

Look - I would agree it was pre 80s, council house and fallback to housing benefit.  But not today with private rental situation especially with big cities.  I would love to see a govt bring that time back but it ain't happening.

It may benefit only a small % of people, most likely those above average wage.  But it does help.

in order of your points: 
The reality is, if you are unable to pay your rent, the total cost is a month's rent. And you arent tied down to the area. If the landlord takes you to court for lost rent, the amount is minimal and easily settled. 

You cant be kicked out on a whim. Nor can rent simply be increased. So these are just false.

You call it stability, i call it an anchor around your neck (at 95% LTV)

2008 we’d just bought a 4 bedroomed house which we needed with 4 kids.  Ex got made redundant more or less the month after completion.  We stayed in and indeed still own that house.  If we’d have rented,  we’d have chucked been out within 3 months,  we’d have had a CCJ for the rest of the contract,  eviction fees etc and had we found another rental house it would have been in a !!!!!! area and we’d have been entitled to 3 bedrooms and had to pay the £390 difference between housing benefits and the actual rent being charged.  Oh and we wouldn’t have made £120,000 in capital gains since.  

avg eviction times are 6 months, not 3. But you seem to miss the point, you would also not be tied to the house and able to move for work. It's good that it worked out for you. 

Comms69

Angela_D_3 said:

Comms69 said:

MobileSaver said:

Comms69 said:

you wont be liable for any massive repairs that may come up e.g. new roof.

csgohan4 said:

Repairs, maintenance are not cheap. A new boiler is a few thousands for example. 

While these are common scare tactics amongst the HPC crowd, in 30 years of home ownership I have never had to buy a new roof or a new boiler. It does make you wonder why the HPC zealots are so keen to buy if all they can look forward to is repair bills of thousands or tens of thousands of pounds...

In the interests of transparency, I do know that my brother-in-law mentioned in passing he's had a new boiler installed, apparently it was completely free thanks to government grants!

Ye strangely I dont think that's a good idea. Not sure why the state should be covering anything, but until the system breaks from overuse i cant see it changing. From my perspective the benefits system will hopefully crumble soon. 

The benefits system crumbled a long time ago,  Rishi was very excited to report yesterday someone on minimum wage would still get 90% of their wages under this new scheme.  Trouble is people weren’t surviving on 100% of them pre covid.  

Fingers crossed it all comes to a halt soon then

eidand

Comms69 said:

The govt has zero say in this. Frankly anyone buying with a 95% mortgage needs their head examining. 

You're letting your emotions get a bit out of hand here. There is literally zero issue, as long as one can afford the repayments and doesn't borrow too much. I've bought my first house in 2007 with a 0% deposit ( yup, one of those 100% mortgages ) and I built up nice equity over time which now helped me buy a much nicer house in a very nice area as well.
I did not stretch too thin though, I knew my limit and stuck to it, on both occasions.

Comms69

eidand said:

Comms69 said:

The govt has zero say in this. Frankly anyone buying with a 95% mortgage needs their head examining. 

You're letting your emotions get a bit out of hand here. There is literally zero issue, as long as one can afford the repayments and doesn't borrow too much. I've bought my first house in 2007 with a 0% deposit ( yup, one of those 100% mortgages ) and I built up nice equity over time which now helped me buy a much nicer house in a very nice area as well.
I did not stretch too thin though, I knew my limit and stuck to it, on both occasions.

Literally i'm not emotional in the slightest. The reality is that unemployement will double in next 3-4 months. Anyone buying at 95% now needs to really question why.

eidand

Comms69 said:

eidand said:

Comms69 said:

The govt has zero say in this. Frankly anyone buying with a 95% mortgage needs their head examining. 

You're letting your emotions get a bit out of hand here. There is literally zero issue, as long as one can afford the repayments and doesn't borrow too much. I've bought my first house in 2007 with a 0% deposit ( yup, one of those 100% mortgages ) and I built up nice equity over time which now helped me buy a much nicer house in a very nice area as well.
I did not stretch too thin though, I knew my limit and stuck to it, on both occasions.

Literally i'm not emotional in the slightest. The reality is that unemployement will double in next 3-4 months. Anyone buying at 95% now needs to really question why.

Everyone's circumstances are different which is why blanket statements don't hold much water. People who work in tech for example won't really be affected by whatever happens next. Same goes for other professions. 

Comms69

eidand said:

Comms69 said:

eidand said:

Comms69 said:

The govt has zero say in this. Frankly anyone buying with a 95% mortgage needs their head examining. 

You're letting your emotions get a bit out of hand here. There is literally zero issue, as long as one can afford the repayments and doesn't borrow too much. I've bought my first house in 2007 with a 0% deposit ( yup, one of those 100% mortgages ) and I built up nice equity over time which now helped me buy a much nicer house in a very nice area as well.
I did not stretch too thin though, I knew my limit and stuck to it, on both occasions.

Literally i'm not emotional in the slightest. The reality is that unemployement will double in next 3-4 months. Anyone buying at 95% now needs to really question why.

Everyone's circumstances are different which is why blanket statements don't hold much water. People who work in tech for example won't really be affected by whatever happens next. Same goes for other professions. 

again it depends on sectors. If they rely on public sector contracts they very much will be affected.