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25% Io Mortgage


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HOLA441

25% shared ownership. Does that mean the housing association will stump up 75% of the maintenance and repair bills for the property <_< ?

Not usually. Usually, in this type of shared ownership. You pay 100% of the maintenance and repair. This tends to make the rent very poor value for money.

It's also variable what happens to your equity stake. The usual principle is that the 'owner' takes the profit or loss on their share only - the housing association eats any shortfall on their share. In some ways the high rent serves to pay for the 'put option' on the price of the house. However, this is not universal, and there were some schemes where the 'owner' was responsible for 100% of any shortfall in any subsequent sale price.

The rent is also a potential time bomb. It may start off reasonable, but I've seen lease agreements where the rent increases annually at CPI+2%, or RPI+1%. 10 years down the line, you could be looking at big 'real terms' increases in rent.

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HOLA442

(2) It was only like that for a few years wage rises were good year on year by about year 4 with interest rates dropping my mortgage was about 25% of my take home pay . Today with pay rises not keeping up with general costs mortgages are going to get a bigger burden as the years go on not smaller burdens.

Rapidly, even using the fudged inflation figures.

http://www.google.com/hostednews/ukpress/article/ALeqM5g92xr0KX5VKnC8YX92HxFXFpFwQA?docId=N0146871298565160727A

Record plunge in disposable income

(UKPA) – 2 days ago

Families' disposable income dived by a record £9 a week during January as inflation continued to outstrip wage growth, research has indicated.

The average family had £174 a week left to spend after meeting all of their essential outgoings, down from £183 a week in January last year, according to supermarket group Asda.

It was the 13th consecutive month during which people suffered a year-on-year fall in their disposable income, while it was also the biggest drop recorded since Asda first began collecting the data in January 2007.

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HOLA443

Rapidly, even using the fudged inflation figures.

http://www.google.com/hostednews/ukpress/article/ALeqM5g92xr0KX5VKnC8YX92HxFXFpFwQA?docId=N0146871298565160727A

Record plunge in disposable income

(UKPA) – 2 days ago

Families' disposable income dived by a record £9 a week during January as inflation continued to outstrip wage growth, research has indicated.

The average family had £174 a week left to spend after meeting all of their essential outgoings, down from £183 a week in January last year, according to supermarket group Asda.

It was the 13th consecutive month during which people suffered a year-on-year fall in their disposable income, while it was also the biggest drop recorded since Asda first began collecting the data in January 2007.

Scary stuff

Everyone I talk to is complaining about how much the bills are costing . I sat down and went through every household bill a couple of weeks back , on a small one bed flat one person living here It is £415 per month. That is for service charge, council tax with the single person discount ,water, electricity, insurance, phone and tv licence.

How much are people paying in larger houses with 4 in a family adding all the extra energy used the higher council tax and more insurance ?

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HOLA444

Scary stuff

Everyone I talk to is complaining about how much the bills are costing . I sat down and went through every household bill a couple of weeks back , on a small one bed flat one person living here It is £415 per month. That is for service charge, council tax with the single person discount ,water, electricity, insurance, phone and tv licence.

How much are people paying in larger houses with 4 in a family adding all the extra energy used the higher council tax and more insurance ?

Oh, I don't know, we cover that lot for about £250 per month (family of 5)

water = £190 pa

elec + gas = £900 pa

insurance = £120 pa

phone + internet = £300 pa

tv licence = £145 pa

council tax = £1300 pa

Mind you, we have no mortgage to pay.

It's much more expensive to live alone in a small flat.

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HOLA445

Oh, I don't know, we cover that lot for about £250 per month (family of 5)

water = £190 pa

elec + gas = £900 pa

insurance = £120 pa

phone + internet = £300 pa

tv licence = £145 pa

council tax = £1300 pa

Mind you, we have no mortgage to pay.

It's much more expensive to live alone in a small flat.

Well my water is twice yours

I am electric only £1000 per year .

Your insurance is very cheap is that buildings and contents ? are you under insured ? I pay £204 per year contents only as flat is insured via maintenance charges . The only way to find out sadley if your under insured is if you ever need to claim.

Phone and internet yours is cheap as well who are you with ? what is your package ?

I also have a service charge to pay that works out at £970 per year.

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