75% Ownership Is It Worth Considering ?

[E Powell]

Firstly can we be clear that if Mr. Brown kindly offers to pay for 25% of your 1st house he isn't doing you a favour, he's simply propping up property prices which may well of fallen back 20% meaning you (as a first time buyer) could have owned all of your property for the same money.

Unless of course he spotted the ease of ill gotten gains (btl speculation with peoples homes)and decided to have a piece of the action himself.

Does giving ftb a 25% hand-out lift that type of property just up out of private btl investors reach effectively closing off the btl investment market in one fowl swoop ?

Just a thought, what do you think ?

Further if ftb's do go for this incentive will we see a repeat of (give people more finance and they'll compete with others for the same property and simply push its price up) eg. increased multiple incomes then self cert.

If ftb's were canny they'd hold off and let the market fall back a bit because as previous posts mention I think some landlords are struggling, particularly with flats in blocks and are starting to sell them.

Lets hope we don't see a surge of ftb clutching at 75% ownership, It'll all end in tears. (It's just what struggling BTL investors need to off load at high prices).

[2005]

Firstly can we be clear that if Mr. Brown kindly offers to pay for 25% of your 1st house he isn't doing you a favour, he's simply propping up property prices which may well of fallen back 20% meaning you (as a first time buyer) could have owned all of your property for the same money.

Unless of course he spotted the ease of ill gotten gains (btl speculation with peoples homes)and decided to have a piece of the action himself.

Does giving ftb a 25% hand-out lift that type of property just up out of private btl investors reach effectively closing off the btl investment market in one fowl swoop ?

Just a thought, what do you think ?

Further if ftb's do go for this incentive will we see a repeat of (give people more finance and they'll compete with others for the same property and simply push its price up) eg. increased multiple incomes then self cert.

If ftb's were canny they'd hold off and let the market fall back a bit because as previous posts mention I think some landlords are struggling, particularly with flats in blocks and are starting to sell them.

Lets hope we don't see a surge of ftb clutching at 75% ownership, It'll all end in tears. (It's just what struggling BTL investors need to off load at high prices).

These schemes are a mugs game. I don;t hink the 25% is a free handout - I think you may have to pay rent on the remaining 25%.

I agree - this is a feeble attempt to prop up the market by to make sure that houses are still kept at the current value - you just own less of it.

Fortunately it won't work. I think there are only 20,000 in the pipeline and this will be piloted in target areas first.

These schemes have been around for ages - they were around in the last crash. From what I recall they were a last ditch attempt to do something - anything - to sustain the housing market.

IMO when they start promoting schemes like this it is too late - the end game is in sight.