SarahBell Posted March 26, 2011 Share Posted March 26, 2011 Think it was a budget round up thing but article warning ftb they could be in negative equity if they take up the offer of the first buy loans Quote Link to comment Share on other sites More sharing options...
porca misèria Posted March 26, 2011 Share Posted March 26, 2011 (edited) Think it was a budget round up thing but article warning ftb they could be in negative equity if they take up the offer of the first buy loans I guess we don't know what the government intended of this: whether they expected to help anyone, or just wanted to be seen to offer something. Or even, exactly what's happening .... But in practice it's looking good: it's got everyone rallying to the HPC cause! Edited March 26, 2011 by porca misèria Quote Link to comment Share on other sites More sharing options...
athom Posted March 26, 2011 Share Posted March 26, 2011 Think it was a budget round up thing but article warning ftb they could be in negative equity if they take up the offer of the first buy loans It seems likely that the prices paid will be artificially inflated only while the scheme lasts which is one problem. It might also be that the buyers lose some ability to beat the price down, seeing as this is a builders bail out the builders might get more option to firm the prices. Which ever way though if it's not bought in a fair market it seems very likely they will be paying over the odds. Quote Link to comment Share on other sites More sharing options...
tim123 Posted March 26, 2011 Share Posted March 26, 2011 I guess we don't know what the government intended of this: whether they expected to help anyone, or just wanted to be seen to offer something. Or even, exactly what's happening .... There is absolutely no way that the millionaire cons would have foreseen the backlash that this is getting. So they certainly didn't introduce it to get that backlash. Quote Link to comment Share on other sites More sharing options...
(Blizzard) Posted March 26, 2011 Share Posted March 26, 2011 (edited) There is absolutely no way that the millionaire cons would have foreseen the backlash that this is getting. So they certainly didn't introduce it to get that backlash. The BTL tax break is the most significant issue from the budget, I think. The loan idea is just offensive. Spitting in the face of the priced-out generation, without any real impact. Its a bung to the building companies, who have had words with one of their 'contacts' in government . Edited March 26, 2011 by (Blizzard) Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted March 26, 2011 Share Posted March 26, 2011 House near me just gone back on the market. It isn't a new build. Could be a FTB deciding to pull out and hang on for the new scheme? This scheme could have chains collapsing all over. Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted March 26, 2011 Share Posted March 26, 2011 House near me just gone back on the market. It isn't a new build. Could be a FTB deciding to pull out and hang on for the new scheme? This scheme could have chains collapsing all over. whilst this is clearly something to be wary of i think FTBs should be a lot more wary of Birnam Wood meeting Dunsinane Hill Quote Link to comment Share on other sites More sharing options...
porca misèria Posted March 26, 2011 Share Posted March 26, 2011 The loan idea is just offensive. Spitting in the face of the priced-out generation, without any real impact. That at least is a long-standing tradition in this country. All kinds of social housing schemes have served to help some, and further marginalise those who miss out. Council houses, council house sales, low cost houses for local people, "key worker" schemes, housing associations, shared ownership, homebuy direct, .... On the positive side, this latest scheme is at least pulling back from the trend of such schemes getting ever more extravagantly inflated. And it's done a great job of rallying commentators to our cause! Quote Link to comment Share on other sites More sharing options...
123Jim Posted March 26, 2011 Share Posted March 26, 2011 So you've found you're dream rabbit hutch for 120K, borrowed your 6K on Mastercard, got your 24K from gubbermint, then your 90K mortgage. Surely you finish paying rent, move in, pay a few months mortgage, go on SMI or just stop paying mortgage with a 1 way bet on the price. Your break even vs rent, where you lose your deposit and pop the keys back through is what, 12 months? Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted March 26, 2011 Share Posted March 26, 2011 whilst this is clearly something to be wary of i think FTBs should be a lot more wary of Birnam Wood meeting Dunsinane Hill Are you calling our wonderful government a traitor just because they are duping FTBs, to make a few quid in brown envelopes from house builders? A £200k house they get an interest free loan for 5 years on £40k of it, then a 1.75% year. Say at 5% it saves then £10k . Then they have interest on £190k for 19 years. They cannot sell and move until they can pay back the 20% so are stuck there. If they didn't fall for the scheme and prices fell just 5%, the house is £190k so that is the same £10k saving - but - they also save almost double that in mortgage interest at say 6% over 25 years. Of course if prices fell more they save even more. Quote Link to comment Share on other sites More sharing options...
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