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Daily Mail "Help to buy left us trapped"

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https://www.msn.com/en-gb/money/homeandproperty/help-to-buy-has-left-us-trapped-charles-and-jessica-want-to-sell-their-two-bed-flat-but-it-would-leave-them-£18k-out-of-pocket/ar-BBMSTlL?li=AA54rU&ocid=mailsignout

"

Charles Malcolm and his partner Jessica Dawson were desperate to buy a house near their parents in Cove Bay, Aberdeen.

The young couple had tried to scrape together a deposit by cutting back on luxuries and had borrowed money from Jessica’s family.

In the end, it was the Government’s flagship Help To Buy scheme that gave them the financial boost they needed to secure a £205,000 two-bedroom, new-build flat two miles from the town centre.

But just three years later, the young couple — who now have an 18-month-old son, Hudson — are effectively trapped
"

and (bold added by me)

"Last week, Money Mail revealed how experts have raised serious concerns that property developers are inflating the price of new-build homes sold through Help To Buy.

Three separate industry insiders have told Money Mail that these new properties are being overpriced by as much as 15 per cent.

The experts say firms are trying to cash in because they know that buyers who use Help To Buy can afford to purchase more expensive homes than they could without the scheme."
 

Edited by Flopsy

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The daily mail are very good at trying to get people all riled up.

they deliberately make articles pretending they care about ‘victims’ but they don’t, they just want to you be all riled up and be like ‘they overpaid!’ My opinion is so valuable. 

of course they did over pay like mugs. 

whats more telling is that the daily mail are picking up on the sentiments that everyone thinks new build buyers are mugs. And they are just poking that particular badger. 

 

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I liked the bit where it says...

The idea was that they would stay in the flat for a few years while saving for a larger deposit. Then, when they sold the property, they could use this, plus any profit they had made through rising house prices, to afford a new home.

clearly not accounting for all the possible variables.

 

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The scheme depends on HPI...they hoped it would be self fulfilling...but a huge gamble and most likely will fail in spectacular fashion.

15% fall...they haven't seen anything yet.

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1 hour ago, Flopsy said:

https://www.msn.com/en-gb/money/homeandproperty/help-to-buy-has-left-us-trapped-charles-and-jessica-want-to-sell-their-two-bed-flat-but-it-would-leave-them-£18k-out-of-pocket/ar-BBMSTlL?li=AA54rU&ocid=mailsignout

"

Charles Malcolm and his partner Jessica Dawson were desperate to buy a house near their parents in Cove Bay, Aberdeen.

The young couple had tried to scrape together a deposit by cutting back on luxuries and had borrowed money from Jessica’s family.

In the end, it was the Government’s flagship Help To Buy scheme that gave them the financial boost they needed to secure a £205,000 two-bedroom, new-build flat two miles from the town centre.

But just three years later, the young couple — who now have an 18-month-old son, Hudson — are effectively trapped
"

and (bold added by me)

"Last week, Money Mail revealed how experts have raised serious concerns that property developers are inflating the price of new-build homes sold through Help To Buy.

Three separate industry insiders have told Money Mail that these new properties are being overpriced by as much as 15 per cent.

The experts say firms are trying to cash in because they know that buyers who use Help To Buy can afford to purchase more expensive homes than they could without the scheme."
 

Hudson Malcolm!

 

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Oh the poor mites, having to cut back on luxuries. What about the really unfortunate ones who couldn't ever hope to buy a home even if the cut back on essentials like food and warmth.

Pathetic from the wail, but hardly a surprise.

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Prices in Aberdeen have fallen sharply in recent years because of the fall in oil prices - they would have been down whatever property they'd bought. 

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Is "effectively trapped" correct? Even if they can't sell, perhaps they could get consent to let, and find somewhere cheaper to live (perhaps with family) to save.

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13 hours ago, HowMuch! said:

I liked the bit where it says...

The idea was that they would stay in the flat for a few years while saving for a larger deposit. Then, when they sold the property, they could use this, plus any profit they had made through rising house prices, to afford a new home.

clearly not accounting for all the possible variables.

What's shocking is the number of people who can't see the problem with that logic.

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23 minutes ago, DrMartinSanchez said:

What's shocking is the number of people who can't see the problem with that logic.

British citizens seem to be particularly dumb these days so its not surprising that the flawed logic of ever rising prices escapes them.

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59 minutes ago, DrMartinSanchez said:

What's shocking is the number of people who can't see the problem with that logic.

With a 5% down mortgage, every pound in appreciation is £20 more you "afford" on the new house.

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I'm guessing it's a lot less than the optimistic valuation given to them. They don't have a mug behind them able to use the HTB price bazooka. Unlucky.

My niece is doing this in Weston-supernightmare. Warned her that HTB is a scam but her and my eldest sister just see it as welcome help form our benevolent leaders. Oh well...

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Government and the media so easily find the limp hard luck stories on a few idiotic homeowners who probably were taking on more than they could chew and at the expense of the taxpayer in  so many cases. You just wait until house price falls start gathering pace and the endless media reports of the "poor struggling homeowner" or voices from government constantly shedding crocodile tears "for hard working homeowners".

What about the years and decades of the poor struggling renter, the sub species in their millions who do not exist going on the silent voices in the media and Government. The 2nd or even 3rd class renting society that is not even worth giving 3 year security contracts to in order to give families some kind of stable home life.

I hate myself for saying this, and excluding BTL landlords and property speculators who I want to see suffer in a property market crash so they never are tempted to use the property market again as a get quick rich scheme again, I will have little sympathy also for those who took so many risks to get on this insane property market, nothing compared to the renting society who have been so long ignored and talked about by the like of nasty little creatures such as Kirstie Allsopp as people who "want to rent and prefer it"

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Not sure what they are complaining about, it seems they knew they were paying a premium for a new property.  

Quote

‘We knew the flat was quite pricey when we bought it, compared with other homes nearby, but we assumed that was because it was a brand-new property.

Did they think it would be new forever. Overall they are doing pretty well if they manage to sell at a 15% loss, I suspect it will be rather more than that.

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18 hours ago, Flopsy said:

Three separate industry insiders have told Money Mail that these new properties are being overpriced by as much as 15 per cent.

The experts say firms are trying to cash in because they know that buyers who use Help To Buy can afford to purchase more expensive homes than they could without the scheme."

 

Aaahhhhhh. Well the laughed at people on a certain anti-HPI message board could have told our idiot leaders that was going to happen. In fact they WERE saying it all along. But what do they know. They are angry, debbie-downer, buzz-kill, anti-HPI types.

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14 hours ago, Kosmin said:

Is "effectively trapped" correct? Even if they can't sell, perhaps they could get consent to let, and find somewhere cheaper to live (perhaps with family) to save.

I did read through the HTB small print a while back and I think there was a ban on renting out the house?

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I responded to an Osborne tweet that this was going to be a millstone round people's necks. Response: 0.

Funny how the press didn't even bother searching Osborne's twitter feed around the time this was published. Except that would be research ... something journos are famous for ... ? Ah wait ...

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Another Aberdeen HTB story I heard was a friend of a friend was working as a junior accountant while studying for her ACCA exams. She bought a new-build flat on HTB and everything was fine for a bit.

Then her practice in Aberdeen had to make job cuts and the only position she could find at her level was in Edinburgh. She wasn't able to rent the place out or sell it without making a huge loss that would wipe out her deposit and then some. She apparently felt a lot of resentment against her family whom she feels put undue pressure on her to buy the place.

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How many bedrooms does a young family need? They can have the wain in with them if guests are over surely? 

How about not hoarding shite and doing away with non-essentials? An 18 month old baby's not going to care about the vast majority of things clogging up their living space.

Presumably bought post oil crash in 2014.... says enough already.

I used to live in the area... and I gather this is the new development Charleston. Its characterless and has little in the way of infrastructure. There's a grotty pub not far I guess.

Some really thick folk were buying up these same properties in the region of £300k prior to the oil bust.

They still have a place to live at the end of the day; however, they paid a whole lot for a Scotia shite box that depreciates like a new Korean car.

If this loon is working in the patch he'll be lambasted by his mates, that's for sure. Attention whores... possibly paid to submit such drivel by the mail.

 

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1 hour ago, cashinmattress said:

How many bedrooms does a young family need? They can have the wain in with them if guests are over surely? 

How about not hoarding shite and doing away with non-essentials? An 18 month old baby's not going to care about the vast majority of things clogging up their living space.

 

I know a handful of eastern europeans and a number of them, couples, some married, live two couples to a two bedroom house. Whatever it takes. Different attitude to here. And I feel a bit for the woman in the other Aberdeen story above. I can quite believe she felt a family or social pressure to buy.

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Their gripe seems to be that they lost money instead of made money. By this stage they wanted to have the equity covering their htb loan, and some more on top of that for a deposit for a bigger house.

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  • 238 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% +
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      • Even
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      • up 5%



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