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@contradevian

Quandary For A Left Wing Council Tenant

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http://www.spectator.co.uk/features/8971181/should-i-take-george-osbornes-bribe/

The place I live in now, on a slightly grimy estate in Tooting, south London, has been my home for over 20 years. Amazingly, it’s now valued at £150,000 — but then garages in Chelsea sell for £500,000. Osborne has increased the discount for council flats from £50,000 to £75,000. So I could buy my ridiculously overvalued flat at £75,000. Next, I could pay for it via a mortgage made artificially cheap by his quantitative easing. A 25-year mortgage at 4 per cent would cost me £400 a month, way lower than my £480 rent. My interest rate might go up, but my rent would probably go up by more. And after three years, I could sell and cash in much of the £75,000 discount he is giving me.

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Guest eight

Sounds like my parents. At one time they could have bought their two bed council house for about £3K. They didn't as my Dad "believed" in social housing. Now nearly all of the surrounding houses are private rentals filled with all kinds of undesirables.

Sucker.

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£80 a month doesn't sound like a big discount considering the extra responsibilities, and risks wrt rates, the person would be taking on. I think the person is wrong to say that their remt will rise by more than their mortgage if rates rose back to historic averages. In fact I'd suggest it's a no brainer that they stay.

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Pushing social rents up and massively increasing the discount under RTB is part of the plan to eradicate social housing.

So his outgoings fall by £80 a month. Does that include service charges? What about maintenance? If the council decide on any improvements to the block, he will have no choice but to stump up. After a few years of this, he will either sell to a BTL slumlord or become one himself.

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As others have mentioned the key issue is maintenance, 80 quid a month is nothing.

If the intention is to obtain a deposit for a property elsewhere then fine, buy it and sell in 3 years.

If the intention is to stay, it doesn't seem worth it.

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I'm in a similar situation to that chap.

I currently live in a property 'valued' at around £225,000 so with discount could get for £150k. I don't like the house or the estate but it is close to local train station, park, town etc.

Others bought on my road back in the 80's whacked on an extension and they are now going for circa £325k.

If I went and bought on the open market I would be looking at about 5 times salary whereas this way I could buy at about 2.5. I am probably better off than most and morally feel I should go and buy on open market but hey............

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As others have mentioned the key issue is maintenance, 80 quid a month is nothing.

If the intention is to obtain a deposit for a property elsewhere then fine, buy it and sell in 3 years.

If the intention is to stay, it doesn't seem worth it.

I'd guess that maintenance on this council house has cost around 2k over the past 8 years. I asked the contractors who did our kitchen and bathroom.

So mainly its kitchens, bathrooms and boilers which last 25 years. A new valient boiler will cost about 1k taking into account economies of scale...

I would buy on balance, you never know how things might change over the next couple of years.

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It's no use worrying about the morals of it.

RTB is wrong IMO and should never have been introduced, but as individuals you must look after yourselves and your families as best you can.

Vote for any party that vows to build social housing and end RTB if your conscience bothers you.

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Vote for any party that vows to build social housing and end RTB if your conscience bothers you.

Which party would that be then? And, for a bonus, how long after election would it take them to u-turn that decision? :rolleyes:

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I'd guess that maintenance on this council house has cost around 2k over the past 8 years. I asked the contractors who did our kitchen and bathroom.

So mainly its kitchens, bathrooms and boilers which last 25 years. A new valient boiler will cost about 1k taking into account economies of scale...

I would buy on balance, you never know how things might change over the next couple of years.

the case is a flat...you have grounds and the structure to consider...and you will have little or no control over the fees for general repairs, lifts etc etc.

For many this quandry is answered by the question...do you have your cake?...or do you eat it?..you cant have both. but the fear instilled is that if you dont eat your cake today, it will become a petit four rather than the World record super gateau 15 ft accross in 25 years time.

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I'm in a similar situation to that chap.

I currently live in a property 'valued' at around £225,000 so with discount could get for £150k. I don't like the house or the estate but it is close to local train station, park, town etc.

Others bought on my road back in the 80's whacked on an extension and they are now going for circa £325k.

If I went and bought on the open market I would be looking at about 5 times salary whereas this way I could buy at about 2.5. I am probably better off than most and morally feel I should go and buy on open market but hey............

I assume you're not in London and could get 100k off ??

Anyway, normally you would ask for a price from the council and then complain and get a lower price from the district valuer. It's been done before by 'suggs' a former HPCer.

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Which party would that be then? And, for a bonus, how long after election would it take them to u-turn that decision? :rolleyes:

None as far as I'm aware.

For the moment, all political parties are playthings of the banks who will obviously not favour social housing.

You never know though, a party that isn't a City plaything might emerge that actually makes policies for the country.

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How long do you have to hold it for? Three years? Bit of a risk, the way the UK budget is going....

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As others have mentioned the key issue is maintenance, 80 quid a month is nothing.

If the intention is to obtain a deposit for a property elsewhere then fine, buy it and sell in 3 years.

If the intention is to stay, it doesn't seem worth it.

Read all the terms relating to selling before 5 years.

And then read about maintenance costs. Lifts and water tanks aren't cheap.

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The place I live in now, on a slightly grimy estate in Tooting, south London, has been my home for over 20 years. Amazingly, it’s now valued at £150,000 — but then garages in Chelsea sell for £500,000. Osborne has increased the discount for council flats from £50,000 to £75,000. So I could buy my ridiculously overvalued flat at £75,000. Next, I could pay for it via a mortgage made artificially cheap by his quantitative easing. A 25-year mortgage at 4 per cent would cost me £400 a month, way lower than my £480 rent. My interest rate might go up, but my rent would probably go up by more. And after three years, I could sell and cash in much of the £75,000 discount he is giving me.

...So what would that property been worth to buy on the open market 20 years ago.......£75k or less?

Would the rent paid over the 20 year period been the same as an IO loan plus a bit more to cover for maintenance that the council would have provided?

Social housing for working class people on low wages tends to stay in families for many years...once you have a good one in a good place you stick with it council tenant/housing association tenant movement is very low, mainly swaps........if your luck changes, your income increases you buy your own place in a better area/road a place where more owner occupiers live.

The problem is not selling social homes to long-term tenants 20+ years, it is not building new social homes for new generation low paid working people.........instead we have HTB when all it is is helping people do is to take on huge debt liabilities that could leave them on the street if only minor changes in life circumstances came about. ;)

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  • 260 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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