Jump to content
House Price Crash Forum
AvoidDebt

New homes for first-time buyers between 23 and 40 years old at a discount of at least 20% below market value.

Recommended Posts

Luton is on that list. A 20% discount in Luton would get you back to Jan 2016 prices. Shows you how insane the London and South East bubble has been, even the govt. schemes can't keep up with it. Workers stand no chance... 

Share this post


Link to post
Share on other sites
11 minutes ago, zugzwang said:

The Starter Homes Land Fund. :rolleyes:

Another £1.2bn into developers' pockets.

If these are developments that are too high risk for the market to bear otherwise, then it's a fair idea. IF.

Share this post


Link to post
Share on other sites
2 minutes ago, Si1 said:

If these are developments that are too high risk for the market to bear otherwise, then it's a fair idea. IF.

It would be fairer without the age limit - there's plenty of 40's wannabe FTBs around, why discriminate? The FTB criteria alone should be enough.

Share this post


Link to post
Share on other sites

HTB, but rather than giving money to the buyer to pay back, they're giving it direct to the developer to keep.

Plus seems the Government is presuming that a 20% cut makes makes homes affordable for 23 to 40 year olds. And that is 20% of new builds (which will be priced higher already). The maths won't work in the south. Just a nice discount for those who will have a large enough deposit or a high enough salary. 

Share this post


Link to post
Share on other sites
1 hour ago, Nickos said:

Ah, so prices to rise by 20% then is the more likely take away item of this. Keep those plates spinning.

That's what'll happen.  Builders will add 20% to the price, then knock that 20% off for 23-40 year olds.  

Share this post


Link to post
Share on other sites

The 40 year old cutoff point is due to this, most likely. This is from 2014. 

Traditional 25-year mortgages disappearing fast as many first-time buyers choose loan terms of up to 40 YEARS

http://www.thisismoney.co.uk/money/mortgageshome/article-2754594/Traditional-25-year-mortgages-disappearing-fast-time-buyers-choose-loan-terms-40-YEARS.html

The traditional 25-year mortgage is disappearing fast as many first-time buyers ‘go long’ and choose loan terms of 30, 35 or even 40 years instead. Long-life loans are common in Japan and other parts of the world and are becoming increasingly popular here.

Edited by AvoidDebt

Share this post


Link to post
Share on other sites

So an instant profit of 20% when sold? Now 'market value'......So if if sold to a first time buyer will sell it for less than a second time buyer or a buyer that once owned and now no longer owns, are they a first time buyer?......All very confusing....;)

Share this post


Link to post
Share on other sites
2 hours ago, interestrateripoff said:

So what about ftb aged over 40?

We will not be able to take advantage of this fabulous, life-changing (truly!) offer, woe is us. I would love to put all of my hard-earned savings down to buy a rabbit-hutch on a jerry-built housing estate for a gallumphing fortune and thereby indebt myself for the rest of my life and leave myself open to catastrophic negative equity should a collapse ever be permitted to happen. I'm sobbing into me cornflakes.

Share this post


Link to post
Share on other sites
1 hour ago, canbuywontbuy said:

That's what'll happen.  Builders will add 20% to the price, then knock that 20% off for 23-40 year olds.  

Builders always add about 20% to the price anyway don't they, as most people who buy new are getting an incentive package whatever age they are, in the main part exchange. Only house price inflation masks the fact that it was a really shitty buy when the owner comes to sell.

Share this post


Link to post
Share on other sites
1 minute ago, North London Rent Girl said:

We will not be able to take advantage of this fabulous, life-changing (truly!) offer, woe is us. I would love to put all of my hard-earned savings down to buy a rabbit-hutch on a jerry-built housing estate for a gallumphing fortune and thereby indebt myself for the rest of my life and leave myself open to catastrophic negative equity should a collapse ever be permitted to happen. I'm sobbing into me cornflakes.

Yup, the reality in somewhere like London will be a 20% discount off the over-inflated price of a £450,000 2-bed (and that is 2-bed, at best) flat, hurriedly built next to a railway line, and the rest of your life* will amount to paying for the privilege to live in it . And the government are banking that this will make you a grateful Tory voter for life. 

*Over 40s don't get in cos the government will have calculated that the life needed ain't long enough to pay for it.

Share this post


Link to post
Share on other sites
1 hour ago, Tempus said:

HTB, but rather than giving money to the buyer to pay back, they're giving it direct to the developer to keep.

Plus seems the Government is presuming that a 20% cut makes makes homes affordable for 23 to 40 year olds. And that is 20% of new builds (which will be priced higher already). The maths won't work in the south. Just a nice discount for those who will have a large enough deposit or a high enough salary. 

Quite agree, we know that the prices in developments are set artificially high (over and above their already artificial highness) by dodgy/fraudulent initial purchases, they'll just bump em up.

Am wondering how this will combine with that policy idea about the government buying properties in large new developments that don't sell that came up on here a few weeks ago - or was that just kite-flying?

Share this post


Link to post
Share on other sites
1 hour ago, AvoidDebt said:

The 40 year old cutoff point is due to this, most likely. This is from 2014. 

Traditional 25-year mortgages disappearing fast as many first-time buyers choose loan terms of up to 40 YEARS

http://www.thisismoney.co.uk/money/mortgageshome/article-2754594/Traditional-25-year-mortgages-disappearing-fast-time-buyers-choose-loan-terms-40-YEARS.html

The traditional 25-year mortgage is disappearing fast as many first-time buyers ‘go long’ and choose loan terms of 30, 35 or even 40 years instead. Long-life loans are common in Japan and other parts of the world and are becoming increasingly popular here.

Is there really any point in buying a house nowadays?

Buy at 40. Paid off by 65 having spent an eye-watering amount on interest over the years.

Discover that you couldn't afford to make any decent pension payments over that time and the gov't pension isn't enough to live on.

Take equity release at 65 years and 1 month, giving the house back to the bank again.

There is only one winner in this scenario and it isn't the chap that actually owned the house for 1 month.

Share this post


Link to post
Share on other sites

In the chancellor's autumn budget statement it was recorded than £1.4 billion pounds would be spent; the article link stipulates £1.2 billion pounds will be allocated, already a £200ml short fall in the original statement. We were / are in the midst of a divorce from the European union, yet more homes are being constructed, goes against the grain of any divorce I'm aware of, usually its sell up and start afresh.

Share this post


Link to post
Share on other sites

Great with a mortgage 4x salary and £100k deposit I only need to save £190k more deposit to get an affordable starter home in London.  This coming from the goverment who when they lasted announced the scheme 2 years ago and took me to their website only had buy to let hotel rooms I could afford.

 

The tories housing policies are a joke, they are in the pockets of the big builders who fund their party.

Share this post


Link to post
Share on other sites

It's an attempt to keep the citizens' spending crazily to prompt up the value of the pound vs. the basket of foreign currencies. On one hand, the chancellor has said that we should be saving more, on the other hand, were being enticed to spend more money.

Share this post


Link to post
Share on other sites

The headling shoudl read:

 

"New home SALES for to first-time buyers supported by the tax payers, likely to profit tory party funders".

 

It's f**king criminal IMHO

 

Edited by TheCountOfNowhere

Share this post


Link to post
Share on other sites

Will this be available with the newbuild HTB 40% thing? The problem with all of the incentives for new builds is that they are making these houses vastly less sellable secondhand - not to mention the built in premium that you already pay for a new home. You are probably looking at 30% off the price the moment you have signed the contract.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   91 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.