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irrationalactor

Shared Ownership 'buyers' Dodge A Bullet.

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Here are some unhappy London first-time 'buyers':

http://www.standard.co.uk/news/london/firsttime-buyers-of-affordable-london-flats-say-social-housing-firm-gazumped-them-9422909.html

Based on the article, Ben Rudkin is 27 and has £107,500 to spend. Agnieszka Tawrel, 38, £85,750. And Guy Morris, 44, £130,000. Before being 'gazumped', none of them could afford more than a 50% share.

I wonder how they were planning to buy out the other half before retirement? Wage increases? Agnieszka and Guy are probably well established in their careers by now. Or was the plan to bank on further inflation and downsize to somewhere in Wales?

I wonder what price these 300k one-bedroom cardboard-boxes would go for if Shared Ownership didn't exist. It's genius for the builders and the housing association - make up a price and then sell however small a 'share' makes it 'affordable'.

This just shows that even ambitious London professionals can only afford about 30% (120k) of a London house (420k). 70% overvalued?

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What a pity putting down a deposit does not seem to be a binding contract. Not like buying a car, is it?

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These schemes only work until all the shysters and crooks get their head around them and then you are no better off than if they didn't exist.

Maybe a right to buy the depost scheme should be introduced so that hard working families can scrape together the deposit for a 12% share (key money) on a 1 bed coffin?

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We have an obligation to ensure that we obtain accurate market values for our affordable home ownership products

I don't think Wandle have got their head around the purpose of "affordable home ownership". :blink:

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~Transport worker Ben Rudkin, 27, agreed to purchase 50 per cent of a one-bedroom flat for £215,000, but it rose to £266,000 after the revaluation.
~Guy Morris, a 44-year-old sales support analyst, was set to move into a £260,000 flat, taking a 50 per cent share. But his apartment is now valued at £383,000 – an increase of £123,000.

Ridiculous enough originally, the price, shared-ownership schemes in themselves, mortgage+rent. Look at their sad hard done by faces. Ordinarily I'd be suggesting buyers who put down deposits may have some position under specific performance, but who cares given the original price they were lining up to pay for SO.

When my loved ones ask me why they've been so priced out for so many years now, I have to be honest. There is no ridiculous excess non-owners at hpc and elswhere won't find excuses for and forgive.

"They just wanted a home." "No one wins in a crash." "Can't have a crash because BTL is the new savings account for the ordinary man."

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Ridiculous enough originally, the price, shared-ownership schemes in themselves, mortgage+rent. Look at their sad hard done by faces. Ordinarily I'd be suggesting buyers who put down deposits may have some position under specific performance, but who cares given the original price they were lining up to pay for SO.

When my loved ones ask me why they've been so priced out for so many years now, I have to be honest. There is no ridiculous excess non-owners at hpc and elswhere won't find excuses for and forgive.

"They just wanted a home." "No one wins in a crash." "Can't have a crash because BTL is the new savings account for the ordinary man."

The new pyramid scheme for the ordinary man. Sign up and get rich. You're dead right that they can't remove the life support. Saw on South Today that they can't recruit teachers in Oxfordshire because no one can afford a home. Solution-more government subsidies to allow low earners (relative to house prices) to buy. Means yet more government ministers using taxpayers money to bid up house prices. More BTL profit. More new BTL investors buying in at higher entry costs. Forget too big to fail. It failed long ago. It's just too big to stop.

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50% of 1 bed flat 215k but this was upwardly revalued ( I can't see the revaluation figure as on mobile). Good grief!

Carney said of London house price rises he couldn't control them as was cash buyer driven. Now the hpi is a problem. Carney must pray the market doesn't follow Northern Ireland HPi.

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50% of 1 bed flat 215k but this was upwardly revalued ( I can't see the revaluation figure as on mobile). Good grief!

Carney said of London house price rises he couldn't control them as was cash buyer driven. Now the hpi is a problem. Carney must pray the market doesn't follow Northern Ireland HPi.

Revaluation from 260K to 417K according to Daily Mail. Government funded building project using housing association management. Like the rest of the country.........rises driven by subsidies from government.

Most replies on the DM comments are aghast that the original price was so cheap!!!!!

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Shared ownership everyone's a winner....

It seems a bailout waiting to happen.

It is a bailout in the first place. Shared equity is a government attempt to rescue those caught in the 2001-2007 bubble.

So, a bailout of a bailout is on the cards? I suspect you're right.

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Revaluation from 260K to 417K according to Daily Mail. Government funded building project using housing association management. Like the rest of the country.........rises driven by subsidies from government.

Most replies on the DM comments are aghast that the original price was so cheap!!!!!

Thanks. 417k doesn't seem affordable? Do theyjust buy a 25% share instead of 50% ? Edited by Ash4781

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Thanks. 417k doesn't seem affordable? Do theyjust buy a 25% share instead of 50% ?

Might as well. After all the mortgage is just to acquire the right to a secure tenancy.

Used to be called 'key money' of course and was outlawed by previous governments on residential property at least

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It is a bailout in the first place. Shared equity is a government attempt to rescue those caught in the 2001-2007 bubble.

So, a bailout of a bailout is on the cards? I suspect you're right.

Yep. Can't wait for the next clever plan to bailout the bankers and keep house prices up.

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From the comments, LynnPW16 gets it! 20% to 25% of the ORIGINAL price is about right for those flats when you factor in monthly service charges. These people have been saved form their own stupidity (IMHO) and they feel aggrieved. Legalised 'key money' is all these shared ownership schemes are.

LynnPW16 hours ago

Probably not. I part own a Wandle flat and this really doesn't surprise me in the slightest. Their practices are shoddy, and they are irresponsible, uninterested and unhelpful landlords. Only last month they left the communal front door of our block of five shared-ownership flats without a lock for 10 days! And with no foreknowledge that any repairs were taking place!

There is no way the flats were worth what they were being sold for in the first place -they are not quality built - let alone what they are being sold for now. And inducing people to buy a share of an over-priced flat is not a way of providing affordable housing, but rather helps to keep house prices inflated beyond the means of ordinary people. I wish I'd never got involved as I can't afford to move on, and thanks to the fees Wandle charge, I can't afford to staircase. It might not seem like it now, but these people have had a lucky escape. I can only see an end to this when someone starts to build truly affordable housing.

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