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    • cjv
    • By cjv 14th Feb 18, 10:32 PM
    • 206Posts
    • 107Thanks
    cjv
    Shared Ownership strategy on New Build Premiums
    • #1
    • 14th Feb 18, 10:32 PM
    Shared Ownership strategy on New Build Premiums 14th Feb 18 at 10:32 PM
    I have been looking into shared ownership recently as a potential route as a first time buyer.

    This got me thinking, will it make financial sense to buy the smallest possible share on a new build until the new home premium dissipates and then staircase? even if you can afford a much larger % at the initial purchase, or will the rent part you pay before increasing your ownership share counter any potential gains from this strategy?
Page 1
    • da_rule
    • By da_rule 14th Feb 18, 10:59 PM
    • 2,627 Posts
    • 2,315 Thanks
    da_rule
    • #2
    • 14th Feb 18, 10:59 PM
    • #2
    • 14th Feb 18, 10:59 PM
    This is difficult to really answer as there are so many variables.

    As you say, the amount you pay in rent might negate any saving. You will also have potentially rising property prices (and if these rise at a higher rate than the !!!8216;new build premium!!!8217; wears off then you will be out of pocket). You!!!8217;ve also got potential legal and admin costs every time you staircase.
    • cjv
    • By cjv 14th Feb 18, 11:12 PM
    • 206 Posts
    • 107 Thanks
    cjv
    • #3
    • 14th Feb 18, 11:12 PM
    • #3
    • 14th Feb 18, 11:12 PM
    This is difficult to really answer as there are so many variables.

    As you say, the amount you pay in rent might negate any saving. You will also have potentially rising property prices (and if these rise at a higher rate than the !!!8216;new build premium!!!8217; wears off then you will be out of pocket). You!!!8217;ve also got potential legal and admin costs every time you staircase.
    Originally posted by da_rule
    Good points, interesting. I would not let this affect my decision on how much of a share to buy it is just something I was pondering. I think it will always be a gamble if considering this strategy akin to trying to time the stock market.

    With plans to stay in a home for a long time I would just chuck my money in at a comfortable share and hope for the best
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