Shared ownership is this the best move.

simon_grimshaw

With the capital thing i dont really have to much left after bills its hard to save much.
I only put in 15% extra pension because if i am stuck in rent at least i can do is increase my pension.  If i stopped that  i would be 165 better off.

Yeah the pension is means tested. But if i was retired right now and me and are wife only receiving state pension we would get 85% the rent for.
But yeah maybe your right probs not the best strategy i know things cans change.

BungalowBel

I don't know a lot about this subject as we have never privately rented or claimed any housing-related Benefits.

But to me, to make a decision like this based on receiving  UC seems crazy!  

A future Government could stop UC, or change the rules and you might no longer  qualify.

I personally think it would be better, as others have said, to save a bigger deposit and buy a whole house.  

OK, it won't be a four-bed new build.  But in 30 years or less you will have finished paying for it and will then not have any mortgage or rent to pay.  If you carry on renting you will always have to pay that rent and who is to say you will be able to afford it, or that there will be any benefits to cover it?

In ten years' time probably one of your children will have left home. Buy a smaller, older house in a decent but not exclusive neighbourhood, earn as much as possible and pay it down as quickly as you can.

simon_grimshaw

BungalowBel said:

I don't know a lot about this subject as we have never privately rented or claimed any housing-related Benefits.

But to me, to make a decision like this based on receiving  UC seems crazy!  

A future Government could stop UC, or change the rules and you might no longer  qualify.

I personally think it would be better, as others have said, to save a bigger deposit and buy a whole house.  

OK, it won't be a four-bed new build.  But in 30 years or less you will have finished paying for it and will then not have any mortgage or rent to pay.  If you carry on renting you will always have to pay that rent and who is to say you will be able to afford it, or that there will be any benefits to cover it?

In ten years' time probably one of your children will have left home. Buy a smaller, older house in a decent but not exclusive neighbourhood, earn as much as possible and pay it down as quickly as you can.

The problem we have we dont have much money to save. It would takes years and years The house prices are crazy. There is not 1 single house on the market what we would even view if was looking to buy right now. If we just bought anything  now we would
be buying a house for the sake of buying sake.
For the life of me the thought of paying 1500 a month on a house we dont want  just depresses me.

Tiglet2

If nothing changes in your life with regard to earnings, aspirations, savings, then nothing will change.  You'll never be in a position to improve your lot unless you actively seek to make changes, risky though that might be.   

It seems like you are going round in circles trying to decide what's best for you and your family, understandably.  For some, shared ownership has got them on the housing ladder and it's worked well, for others they are still struggling to pay mortgage and rent and have enough money left over for bills and maintenance.

A colleague of mine is the same age as you.  She got on the housing ladder with a one bed flat, then moved a few years later to a 2 bed large flat, now she is in a 4 bed detached house.  All I'm trying to say is that most people don't buy a 4 bed house as a first time buy but will gradually work up to it.   You could have a 30 year mortgage and, as you earn more, pay off a little more to bring down the term to finish by the time you retire.

You are saying that you need 4 beds for your family and a shared ownership house would be attainable but buying 100% would not.  So, I think you need to decide between a smaller property owned 100% by you (maybe with a possibility to extend at a later date), or a larger shared ownership property.   Do read the terms and conditions of shared ownership though.  

Trying to base your decision on whether you will continue to receive UC seems a bit backward as this will forever keep you at the same level as you are now which will not help you in the long run.

simon_grimshaw

I can borrow a max off 250k thats over 30years i would almost be 70. All we are after is a 3 bedroom semi in a decent area with decent room sizes. Were not after anything special or fancy.

Tiglet2

You'd need a 10% (or possibly 5%) deposit, giving you approximately  £275k to purchase something.  Are there any properties in or around your area for that?  If not, how much further away are there properties in that price bracket?

While you might be almost 70 by the time the mortgage is paid off, your rental payments would continue for the rest of your life.

A property is what you make it.  Many properties might not be attractive or desirable, but can become your haven when you have made it your home.

BungalowBel

simon_grimshaw said:

BungalowBel said:

I don't know a lot about this subject as we have never privately rented or claimed any housing-related Benefits.

But to me, to make a decision like this based on receiving  UC seems crazy!  

A future Government could stop UC, or change the rules and you might no longer  qualify.

I personally think it would be better, as others have said, to save a bigger deposit and buy a whole house.  

OK, it won't be a four-bed new build.  But in 30 years or less you will have finished paying for it and will then not have any mortgage or rent to pay.  If you carry on renting you will always have to pay that rent and who is to say you will be able to afford it, or that there will be any benefits to cover it?

In ten years' time probably one of your children will have left home. Buy a smaller, older house in a decent but not exclusive neighbourhood, earn as much as possible and pay it down as quickly as you can.

The problem we have we dont have much money to save. It would takes years and years The house prices are crazy. There is not 1 single house on the market what we would even view if was looking to buy right now. If we just bought anything  now we would
be buying a house for the sake of buying sake.
For the life of me the thought of paying 1500 a month on a house we dont want  just depresses me.

The thought of paying rent for the rest of my life would depress me!  But each to their own.  

We bought our first house fifty years ago when the housing market was very different.  But maybe you could consider a terraced house instead of a semi?  The people who bought our terraced house ten years ago had been looking at semis, then realised that with a terrace you often got three equal size bedrooms (as ours had), instead of two and a box room.  Don't dismiss them out of hand.

simon_grimshaw

Yeah i am open to terraced but not seen one in the price range have a garden for the kids.

Private rent depresses me in retirement absolutely, trying to avoid this.
With shared you get alot more help as it stands.

Another factor what have not mentioned is im on a decent wage but i cant imagine doing these hours what i do in 15 years. Too demanding.
I work  5 x 11hours shifts with a 2hour commute.

Still unsure what to do but cant leave it much longer tbh with the age we are.

sheramber

If you  have not got money to save how will you pay the 25% deposit?

simon_grimshaw

There is no 25% deposit. Its 5% deposit of 25% stake.