Selling ex-council house - will complete after the 5 years discount repayment clause

FtbDreaming

James-may said:

How do you get a council house nowadays? seems like a nice little money spinner.
I applied for a council house 10 years ago but was told unless I was disabled or had a child I wouldn't be offered one.

I'm now kinda wondering why I'm paying full whack, when I could have got a house for a 75% discount then sell it on 5 years later for a massive profit.

It’s not that much of a money spinner... I bought last year and won’t sell for the 10 years at least maybe never. The discount was £9000 not 75%. You might have had opportunities in life that we haven’t. Just focus on yourself instead of worrying about others. 

Norman_Castle

James-may said:

I applied for a council house 10 years ago but was told unless I was disabled or had a child I wouldn't be offered one.

I'm now kinda wondering why I'm paying full whack, when I could have got a house for a 75% discount then sell it on 5 years later for a massive profit.

If you'd got a house 10 years ago you'd still have another 30 years before getting the maximum 70% discount.

If given the option would you consider paying rent for 40 years to be able to buy with a 70% discount a massive profit?

LHCalc123

That's not how the discount works. 

Outside of London, max discount is 70% or £84,600, whichever comes first. Depending on the value of the property, you can hit max discount really quickly. 

The discount for a flat starts at 50% after 3-5 years, then rises by 2% after each complete year after year 5.

london21

I would have thought if you exchanged after the 5 years deadline then don’t pay back the 20% in the 5th year.

Even offering it to the council, they would still have had to pay the going rate.

James-may

LHCalc123 said:

That's not how the discount works. 

Outside of London, max discount is 70% or £84,600, whichever comes first. Depending on the value of the property, you can hit max discount really quickly. 

The discount for a flat starts at 50% after 3-5 years, then rises by 2% after each complete year after year 5.

Exactly, I know someone locally to me who got a council house purely because they had a child in the way, they paid low cost rent for 7 years, then bought the place at a huge discount.

Fair play if it's a home for life, however I think if you rent somewhere 5-10 years, then buy the place then sell up as son as legally allowed, I think it's just milking the system.

I mean it's not new, started in the 80s, but it's why we have so much housing problems now.

AdrianC

James-may said:

I know someone locally to me who got a council house purely because they had a child in the way

No, you don't.

Not unless there's either a massive oversupply of social housing relative to demand (which there won't be) or they forgot to mention an awful lot of detail.

James-may

AdrianC said:

James-may said:

I know someone locally to me who got a council house purely because they had a child in the way

No, you don't.

Not unless there's either a massive oversupply of social housing relative to demand (which there won't be) or they forgot to mention an awful lot of detail.

Yes, I do, actually spoke to them about it last week.
The council wouldn't house them until she was so many weeks pregnant as they weren't in need before a certain way into the pregnancy.

AdrianC

James-may said:

AdrianC said:

James-may said:

I know someone locally to me who got a council house purely because they had a child in the way

No, you don't.

Not unless there's either a massive oversupply of social housing relative to demand (which there won't be) or they forgot to mention an awful lot of detail.

Yes, I do, actually spoke to them about it last week.
The council wouldn't house them until she was so many weeks pregnant as they weren't in need before a certain way into the pregnancy.

May I refer you to the second half of that either-or...?

RelievedSheff

James-may said:

LHCalc123 said:

That's not how the discount works. 

Outside of London, max discount is 70% or £84,600, whichever comes first. Depending on the value of the property, you can hit max discount really quickly. 

The discount for a flat starts at 50% after 3-5 years, then rises by 2% after each complete year after year 5.

Exactly, I know someone locally to me who got a council house purely because they had a child in the way, they paid low cost rent for 7 years, then bought the place at a huge discount.

Fair play if it's a home for life, however I think if you rent somewhere 5-10 years, then buy the place then sell up as son as legally allowed, I think it's just milking the system.

I mean it's not new, started in the 80s, but it's why we have so much housing problems now.

On the other hand ex local authority properties, which tend to be cheaper, have helped a large number of people onto the housing ladder who would otherwise probably never have afforded to buy their own home.

Our last property was ex local authority and it was considerably cheaper than buying a similar property on a non local authority estate.

James-may

RelievedSheff said:

James-may said:

LHCalc123 said:

That's not how the discount works. 

Outside of London, max discount is 70% or £84,600, whichever comes first. Depending on the value of the property, you can hit max discount really quickly. 

The discount for a flat starts at 50% after 3-5 years, then rises by 2% after each complete year after year 5.

Exactly, I know someone locally to me who got a council house purely because they had a child in the way, they paid low cost rent for 7 years, then bought the place at a huge discount.

Fair play if it's a home for life, however I think if you rent somewhere 5-10 years, then buy the place then sell up as son as legally allowed, I think it's just milking the system.

I mean it's not new, started in the 80s, but it's why we have so much housing problems now.

On the other hand ex local authority properties, which tend to be cheaper, have helped a large number of people onto the housing ladder who would otherwise probably never have afforded to buy their own home.

Our last property was ex local authority and it was considerably cheaper than buying a similar property on a non local authority estate.

I suppose that's true as well.