Jump to content
House Price Crash Forum
Sign in to follow this  
djchewmacca

Shared Ownership - Is This A Good Thing Or Bad Thing?

Recommended Posts

I've been looking into these Shared Ownership schemes from Nomad Housing which are supposed to help first time buyers to get onto the property ladder. This particular one is for the new development at Mandale Estate in Thornaby. Anyway I got the information pack this morning and initially they are building 10 three bedroom semi detached houses which are going for £120,000. (VERY, VERY EXPENSIVE!!!)

What you do is you buy 50% of the property which would be £60,000 and pay £150 a month rent. I've worked out you would roughly pay around £350 a month on a £60k mortage adding the £150 month for rent would take it right upto £500 per month. All I want to know is how are 2 people with a child supposed to afford this? Our joint income would be about £22k a year and the most a bank would lend us is £60k and that is really pushing our limits.

You could get a £75k mortgage for about £500 a month, so you may as well do that. I don't understand it. The government say they want to help first time buyers. I don't think this is helping at all unless you are a first time buyer who has a decent income who would like a £120k property for the equivalent of a £75k property. This scheme is not helping anyone who only earns a basic wage.

Share this post


Link to post
Share on other sites
Guest

As a potential FTB, my take on this is: This 'shared ownership' gets you a house / flat. It's a desperation move.

What the hell are you supposed to do next? Spend the rest of your life working your way up the ladder on shared ownership schemes???

Same if you buy with a mate.

When you come to move up, you've got less equity built up cos you only bought a share in the first place. Not a solution in my book.

Share this post


Link to post
Share on other sites
As a potential FTB, my take on this is: This 'shared ownership' gets you a house / flat. It's a desperation move.

What the hell are you supposed to do next? Spend the rest of your life working your way up the ladder on shared ownership schemes???

Same if you buy with a mate.

When you come to move up, you've got less equity built up cos you only bought a share in the first place. Not a solution in my book.

That's exactly what I was thinking.

Share this post


Link to post
Share on other sites

Also what happens if the value falls. Does that mean your share is worth less?

But can you then increase your share by buying extra at a cheaper price because the value of the other partys share has fallen?

Share this post


Link to post
Share on other sites
Also what happens if the value falls. Does that mean your share is worth less?

But can you then increase your share by buying extra at a cheaper price because the value of the other partys share has fallen?

I bet they'll be some sort of catch if this was the case. I can't imagine they would want to sell you their share if the value of the property came down. They would sooner have you renting. It's something to look into though. May want to check any small print on anything you commit to.

Share this post


Link to post
Share on other sites

Its one of the desperation measures to try and keep things afloat, if the average couple cant buy the average Ftb''r place on a average salary then the average price is wrong. Shared ownership - you own half you house + all maintaniance costs etc, but you pay rent on the half you dont own... hows about get f*cked.

Share this post


Link to post
Share on other sites
I've included the letter I received this morning from Nomad Homes in this attachment.

It has all the FAQ's and important information etc...

Check out page 2 of the 'Nomad Housing FAQ.zip' where it says...

Q. How much will the rent be increased by?

You could get yourself into this scheme and find in a couple of years totally out of pocket because you may be paying loads in rent along with a 60k mortgage.

Share this post


Link to post
Share on other sites

Shared ownerships is sh.it.

Don't bother with this VI abortion.

It's just another FTB trap. You get to pay rent and a mortgage and do all the repairs pay all the insurance. What a deal...and you also get wacked when the prices go pear shape.

Stay away from them. Reminds me of the endowment mortgages of the 80's. Yep..another great deal at the time.

Share this post


Link to post
Share on other sites
As a potential FTB, my take on this is: This 'shared ownership' gets you a house / flat. It's a desperation move.

What the hell are you supposed to do next? Spend the rest of your life working your way up the ladder on shared ownership schemes???

Same if you buy with a mate.

When you come to move up, you've got less equity built up cos you only bought a share in the first place. Not a solution in my book.

My view too, it should NEVER NEVER EVER have come to this Thanks to the inaction of this utterly useless government who care not for struggling FTBs Thankyou very much Tony Blair and Goon Brown.

Waht next Multiple shared ownerships.

Share this post


Link to post
Share on other sites
What the hell are you supposed to do next? Spend the rest of your life working your way up the ladder on shared ownership schemes???

No! Because you're only allowed one shared ownership scheme. Most won't let up upgrade to a bigger place so you'll be stuck with a tiny flat that you only own half of, and all the problems that entails.

Share this post


Link to post
Share on other sites

Love the way it is worded "Prices can go down and up. So you could pay MORE to buy extra shares. You may be forced to SELL at less than what you paid initially.

SOunds to me that they are on a win-win and the buyer is on Lose-Lose!

Not only are you paying a Mortgage AND rent you also pay a SERVICE CHARGE!!!

The even keep it at £120,000 instead of £119,950 so you have to pay £1,200 Stamp Duty!

ABSOLUTE RIP OFF!!

Stay well clear!

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.