Friday, Sep 03, 2010
Ladder or snake?
Independent: How to get on the property ladder...finally
Many first-time buyers will be in their forties before they get on the property ladder. Thankfully, there are ways to get there sooner. It was once a cliché but now it is a truism – it has never been more difficult for first-time buyers to get on to the housing ladder. The problem for many is not today's low mortgage payments but lenders' demands for deposits of 20%-plus. But there is help available, if you know where to look. Shared-ownership schemes, Homebuy direct, New-build home buy, Rent to home buy, Right to buy, Social home buy, and the rest. [NB. Homebuy Direct looks like a government bung, does anybody know more about it or know anybody who has used it?]
Posted by drewster @ 01:15 AM (1070 views) Add Comment
5 Comments
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1. Crunchy said...
"Many first-time buyers will be in their forties before they get on the property ladder. Thankfully, there are ways to get there sooner."
Pay over the top prices to cover the risk?
2. gone-to-colombia said...
Roll up, roll up for the great housing swindle!
Room for plenty more morons inside.
¨Here madam, a nice new home that you can own but a fraction¨
änd you sir, why not try our twenty five year home loan trap, buy now before the market falls¨
Will there ever be an end to these lies?
Can the ´journalists´ really believe what they write?
Here´s better advice - wait till the prices fall, as they certainly will!
3. tenyearstogetmymoneyback said...
During the late eighties lots of builders offered shared equity schemes.
People came badly unstuck when prices fell as (typically) after five years
they suddenly found themseleves oweing an extra £20K on the house they
had bought for £100K and was now worth £90K. In fact it was probably one of the
clearest indicators of a bubble. "Buy this house that had a list price of £90K in
1988 for £120K in 1989 but don't worry you don't have to pay the last £20K until
2004 and by that time you will have made a huge profit because "House Prices
only ever go up. Look at what has happened over the last ten years".
There was a Panorama program about this which looked specifically at the Bradley Stoke
estate in Bristol which was renamed to Sadly Broke by the locals, due to the number of
people there who did due to shared equity.
What I would like to know on any of these schemes is if the firms running them
take any of the risk i.e. if prices fall will they take a cut on their percentage of the price, or
(as was certainly the case with the 1980s schemes) do they simply defer the payment
of the last £XXK for a few years
4. Nickspurs said...
These schemes are a con and of the two couples I know who have gone down this route they now realise it and regret their decision. If prices go down you are really stuck as the share that you don`t own doesn`t, yet if prices increase you will owe more as the share goes up in value! They don`t offer the advantages of owning your own home, nor renting as they are really inflexible. One of the couple`s I know their service charges have increased enormously, so yes they have bought a home but are stuck paying over the odds and they are not easy to sell either.
5. sibley's b'stard child said...
I expect so much better from the Indy. As you say GtC; there's no way that seemingly intelligent people can believe this guff. Of course, that infers that they're in on the act. Disgusting.
Perhaps they can run a report in five years time as to how Rayneesh Atwal (pictured in article) is getting on with her shared-ownership property.