Thursday, Apr 30, 2009
Could you Buy A home At 1980s Prices?
The Economic Voice: Could you Buy A home At 1980s Prices?
This is an idea I have been mulling around with that could work and is worth a think about.
It may need tweeking but the bare bones of the idea are here............ I think some of you could be very interested.
Posted by titaniccaptain @ 11:50 AM (710 views) Add Comment
2 Comments
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1. str 2007 said...
Hi TC
I'm inclined along the lines that any such purchase would have to be based on investment purposes as I doubt you could ever get everyone to agree on which 'individual' house they'd get.
The other problem to consider is that there will be some awful houses that will be virtually unlettable in the state the 'fund' aquires them and won't effectively be worth anything like £45k.
Whether this is possible or not I don't know, but would a 'syndicate' type purchase perhaps be better suited to buying up land banks and getting them turned round into finished estates.
At least this way the Government get their housing figures and everyone in the syndicate gets a new house finished to an agreed level/style of specification.
This would also cater for individual budgets more effectively.
Money may well have to be borrowed, but borrowing say 60% against 40% deposits (£40k down £60k borrowed) to fund say a typical 3 bed semi, would be a safe loan and perhaps the government would allow a scheme of direct borrowing from the B o E at an agreed rate of 1% over base for 5 years to make the project happen.
2000 people having homes built would be alot better for the economy than buying up repos.
And if no land banks were available for sale perhaps the government would push some planning permission through for 2000 homes.
Anyway I'm up for it if the land and building option is popular.
2. Tommyweaves said...
Would it not be easier and potentially more profitable for the banks just to auction the houses with either no reserve, or a realistic one, maybe with the caveat that all bidders must be cash buyers?