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Diver Dan

Lift Scheme

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I got this in my Facebook feed as a sponsored link. I normally don't, but I rose to the bait:

First time buyer and struggling with deposits ?

The goverments new LIFT Scheme could be ideal for you.

Shared Equity purchases on open market properties.

The discussion thread went as follows: (Spelling and grammatical errors icluding my own are unchanged.)

Me: Shame on you! These government policies of shared equity and deposit loans simply preserve already overly high prices and do nothing to improve the underlying problems of the national housing stock.

Them: its designed to stimulate the market, help first time buyers and hopefully cut dependance on the goverment for housing.

Its a good scheme and a well thought out one.

not often i agree with anything the Goverment does but this help struggling working people gain that foothold on the property market.

not to mention if houses prices fall you will see alot of people homeless and bankrupt

Me: You don't help struggling people by tricking them into taking on extra amounts of debt. These short-termist policies simply exacerbate the problem of overpriced housing stock and play into the hands of large house-building companies who's and-banks increase in value without them having to lay a single brick.

Increased house especially self-build building through relaxed planning and cheaper house prices by removing artificial demand boosting measures would be much more effective long term.

Them: did you read the scheme ?

1. a mortgage in about 90% of the cases u have delt with has reduced the monthly outgoings of the house holds.

not to mention giving someone a very nice asset that can be handed down to family or used to start a busniess buy a car etc.

2. it covers new builds as well as open market

3. new builds are not the issue house prices rise for alot of reasons. why build houses that noone can afford to buy ? house prices are not only set by supply and demand but the cost to build. more material cost and labour costs o and land costs the higher a house must cost.

These values are all on the rise.

3. large and small companies will benefit from this. only people who might see a ruff deal here is landlords who will be losing tenants

Me: Anyone who enters a deferred-purchase agreement believing that it's a "loan" is going to find out over the next few years that they have mis-modelled their finances, and the deferred portion of the house is just as costly as when they couldn't afford it in the first place.

My bottom line is that people want simple low prices not help to "afford" prices which are already far too high compared to wages which continue to shrink in real terms.

Them: this is not a defered purchase. there is no "loan" from the goverment.

If you read the articals. youw ill find out that the goverment pays uo to 40% of rhe value in the form of a deposit "which no interest is charged upon" this is only repaid upon sale of the house at the same share of which they gave you.

However you also have the option of buying that share out along the way.

Me: So you admit that taxpayers' money is being used to maintain the value of an overpriced asset class?

Them: i admit tax payers money is being used. but i do not agree its being used to maintain an overpriced assest. i found my houe to be what i believed very resnobale.

However lets say house prices did fall by 30% who would build them at a lose?

Is the LIFT scheme just another market prop or does it genuinely offer something different?

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I got this in my Facebook feed as a sponsored link. I normally don't, but I rose to the bait:

The discussion thread went as follows: (Spelling and grammatical errors icluding my own are unchanged.)

Is the LIFT scheme just another market prop or does it genuinely offer something different?

Nothing new it`s just a shared equity scheme they tried it in the 90`s and it failed ,but there will always be some suckered in that will think it`s a great idea because they have just signed on the line (turkeys don't vote for christmas) the penny will drop when they need major repairs to the place and realise they are paying 100% of the cost but will only get 40% (or whatever) back if they decide to sell

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The way I read it - it's a job creation scheme for a selected number of housing associations that are paid to adminster it. Selection criteria for the panel unknown - so cynic in me says back scratching going on. Lots of form fillers generating GDP and bonuses for management. Max value and income limits are low. Successful mugs treated fairly by scheme rules.

Tax payer screwed.

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  • 243 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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