Shared-ownership

[HPCheese]

Browsing RightMove recently I've noticed a lot more shared-ownership properties. For example : http://www.rightmove.co.uk/viewdetails-473...pa_n=2&tr_t=buy

The obvious benefits are that you have no landlord, can paint the walls any colour you like and have a place to call 'home'.

You have to admit it is a tempting prospect for those people unable to get a big enough mortgage for a full house.

Leaving aside the fact that 5 years ago you could buy the entire house for the same price as 50% today :

1. Will the prospect of partial-ownership attract many FTB'ers?

2. If this became more popular, how would it affect any potential HPC - if at all?

3. Could this sustain the 'new order' some people have been talking about with permanently high house prices and a rentier class?

Edited October 6, 2005 by HPCheese

[Guest Guy_Montag]

I would avoid it like the plague.

1) It's not been around for very long. Therefore relatively untried & untested

2) I would still be buying at the top of the market, just only own a part share.

3) I would lose control of my property.

4) The other part owner could sell his share to an undesireable.

& probably other reasons.

This is a bubble, how do I know? Because the prices have been rising faster than most people can save. There is just not enough money in the system.

[AteMoose]

if you cant afford the 100% morgage, and only afford 50%, how can you afford a 50% morgage plus rent? Shared ownership seems to have all the disadvantages of renting, combined with all the disadvantages of buying....

Edited October 6, 2005 by moosetea

[uro_who]

You forgot the benefit of shared negative equity!

Who the hell will buy it off you when house prices fall. I remember the 1990's, you couldn't sell a first time buyers home or 1 bed flat as everyone could afford 3 bed semi's. In a couple fo years time no-one will believe how people were suckered into it.

Keep your money in your pocket and wait.

[HPCheese]

The problem is you're all thinking rationally, but as we know most people don't think rationally when buying a house.

The bottom line to many people will be that they can 'own' a home they wouldn't otherwise be able to afford, and with the mass media, their parents, co-workers etc. encouraging them to buy I can see this taking-off.

It won't help people sell their houses (unless they sell half to the council?), but it may bring FTB'ers back into the market.

[OLDFTB]

You forgot the benefit of shared negative equity!

Who the hell will buy it off you when house prices fall. I remember the 1990's, you couldn't sell a first time buyers home or 1 bed flat as everyone could afford 3 bed semi's. In a couple fo years time no-one will believe how people were suckered into it.

Keep your money in your pocket and wait.

I concur. In 1990 my then Fiance & myself moved from a rented FTB shoebox straight into a 3 bedroomed place on a mortgage due to house prices falling giving us the opportunity of missing the first couple of rungs on the so called housing ladder. Ideal if you intend to start a family & plenty of space to be alone if you are really getting on each others nerves!

I had sold at the peak in 1989 and made 12k, so am an original STR if you like.

[Mushroom]

Ever been tempted by shared ownership of a car?

About as sensible for a house.

[Card]

I concur. In 1990 my then Fiance & myself moved from a rented FTB shoebox straight into a 3 bedroomed place on a mortgage due to house prices falling giving us the opportunity of missing the first couple of rungs on the so called housing ladder. Ideal if you intend to start a family & plenty of space to be alone if you are really getting on each others nerves!

I had sold at the peak in 1989 and made 12k, so am an original STR if you like.

Ha, sold and then upsized at the peak. Nice one!

Shafted and doesn't even know it. Priceless.

[simon99]

Shared ownership is the biggest obstacle in preventing prices falling in my opinion. There are thousands of people who are daft enough to sign up to them, this basically creates a whole new stream of demand and props prices up. Hence the governments desire to push shared ownership on a national level.