My partner and I have been renting in the Lambeth for almost 3 years now have been getting pretty distressed at how it seems we will never be able to buy a flat/house. Ever.
The fact we've given about £55k to landlords over 5 years is also pretty distressing.
Whilst we've been renting it's meant we couldn't save enough, quickly enough, to get a big enough deposit together.
However I've recently been looking at various shared ownership schemes (New Build Homebuy) and thought I'd do a bit of research on here. It seems too good to be true. Very negative views on here it turns out, and I've read the various horror stories.
My impression was actually pretty positive, but I might be being persuaded by the talk of vibrant bars and restaurants, and stock photography of generic smiling couples in their generic flats (sorry, apartments)
We're not keyworkers, or on any social lists. Just a pair of late 20s graduates with secure (as you can get these days) jobs who scrape in just under the minimum income threshold.
A particular development we've looked at is in central London, in the Waterloo/Borough area. Very central, walk to the river, walk to waterloo for my commute, look at tower bridge out the window, 240k for a 2 bed flat (shared kitchen/living room, but would look to shove dividing wall in at some point).
There's a few things we're going to check: what percentage of the building is given out to the drug scumbags, the fixed service charge etc.
It's offered at a minimum 30% share with rent being paid on the rest, but we're looking to borrow to buy 40-50% straight off.
Clearly mortgages seem to be difficult to get these days, but that's another issue
As a quick calculation, the rent on that remaining 60%, is 1/3rd of our total rent at the moment.
I'm no property expert, but the location appears central enough to sustain pretty high demand. Borough's a pretty decent area, but like most parts of London you're only a few hundred metres away from scumbags.
By only buying a 1/3rd, you only lose 1/3rd of the total loss in value (if that makes sense).
And at least we would be paying into a mortgage, which we get back when we sell... get a percentage of it back anyway, more so than at the moment with renting.
Been reading the various discussions on here and it seems many think the market will stop falling by the end of this year, then interest rates will start rising through 2010/11.
So is it a sensible decision to buy in this area at the moment?
Or am I being a complete fool in even considering getting into the property market and just wait it out a few more years?