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Housing Association Tenant

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Thought I would share this with you all.

I was giving a client a lift back from a legal meeting about her tenancy with a housing association. She was complaining about the rent being too much - £70 per week with 4 rent free weeks per year. She said she would like to buy the property (RTB) but is not working. I had a quick think about the finances and I explained to her (of course the figures were not so precise but I gave her the gyst).

Well £70 per week over 48 weeks is £3360 per year. The property is a lovely 2 bed newbuild in a cul de sac and would be priced at about £140k at current asking prices. with a 10% deposit that would leave £126k mortgage. Average (generous) 5.5% interest result in payments of £782 per month. Forgetting insurance and building works etc this results in a total payment of £234,600 over the lifetime of the loan (25 years) over 25 years rent at £70 results in payments of £84,000 - (and rents will only increase with inflation) This is a massive difference - just think of all the money you are saving - you could rent the property for 50 years and still spend less than buying it. Plus she gets all her repairs done!

She felt a lot better about renting after that.

Still, at the end of the day there is nothing like owning your own property, is there?...........

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Thought I would share this with you all.

I was giving a client a lift back from a legal meeting about her tenancy with a housing association. She was complaining about the rent being too much - £70 per week with 4 rent free weeks per year. She said she would like to buy the property (RTB) but is not working. I had a quick think about the finances and I explained to her (of course the figures were not so precise but I gave her the gyst).

Well £70 per week over 48 weeks is £3360 per year. The property is a lovely 2 bed newbuild in a cul de sac and would be priced at about £140k at current asking prices. with a 10% deposit that would leave £126k mortgage. Average (generous) 5.5% interest result in payments of £782 per month. Forgetting insurance and building works etc this results in a total payment of £234,600 over the lifetime of the loan (25 years) over 25 years rent at £70 results in payments of £84,000 - (and rents will only increase with inflation) This is a massive difference - just think of all the money you are saving - you could rent the property for 50 years and still spend less than buying it. Plus she gets all her repairs done!

She felt a lot better about renting after that.

Still, at the end of the day there is nothing like owning your own property, is there?...........

It's a shame that this one example is not representative of majority circumstances. Most NEW social housing is tied into excess valuations and mortgages based on half or more of the property valuation in a now falling market. The person you talked to is clearly having an easy ride compared with the vast majority of FTB and renters. I'm glad you opened her eyes.

If you have a moment please have a look at my thread on the shared ownership sector of so-called social housing. It is in marked contrast to your client's very easy going position. She should count her blessings.

VP

Edited by VacantPossession

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So let's get this straight. An out-of-work person pays 70 squiddlies a week but doesn't really because 10 to 1 she's on benefit. And she thinks the rent is too much.

And in addition to her free rent, you give her free legal advice and a free lift home.

There seem to be a lot of freebies flying around.

There also seem to be a lot of snouts-in-the-trough flying around.

Housing Association Salaries paid by Housing Benefit Tenants (er... your taxes)

Edited by Euphorion

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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