Jump to content
House Price Crash Forum

Should I buy more of my shared ownership, or stick to renting?


Recommended Posts

  • Replies 76
  • Created
  • Last Reply

Top Posters In This Topic

2 hours ago, rickycockroach said:

These are shared ownerships, not social housing...

50% at £300k https://www.rightmove.co.uk/property-for-sale/property-70852693.html

35% - full value 530k https://www.rightmove.co.uk/property-for-sale/property-61104717.html

65%, full value 560k https://www.sharetobuy.com/properties/53970/

An old one here, a shared ownership flat going for a million ££  https://www.theguardian.com/money/2015/aug/24/affordable-shared-ownership-flat-hackney-1m
 

My first thought when looking at shared-ownership and equity-release prices in SE is: "this reduced price is still looks way too expensive even if it was for buying it outright".  I am sure there is a mark up in such market due to smaller borrowed amount required and therefore easier to obtain credit.  

Barge pole x 1000!

Link to comment
Share on other sites

2 hours ago, rickycockroach said:

These are shared ownerships, not social housing...

50% at £300k https://www.rightmove.co.uk/property-for-sale/property-70852693.html

35% - full value 530k https://www.rightmove.co.uk/property-for-sale/property-61104717.html

65%, full value 560k https://www.sharetobuy.com/properties/53970/

An old one here, a shared ownership flat going for a million ££  https://www.theguardian.com/money/2015/aug/24/affordable-shared-ownership-flat-hackney-1m
 

You have to admit they've made a very good job of making them look like social housing units in every respect except price.

Link to comment
Share on other sites

On 02/04/2019 at 12:00, longgone said:

You got shared ownership in 2009 just after the crash ???  why exactly ?  

FGS give it a rest  

19 hours ago, Freki said:
  • As there been any year they have not applied this automatic above inflation increase?
  • Can they be forced to buy your share at the same valuation they are telling you it is worth atm?

RENTS IN THE PRIVATE SECTOR HAVE SHOT UP BY FAR MORE THAN INFLATION

18 hours ago, rickycockroach said:

However, compared to my renting years when increases were literally hundreds overnight - it feels mild in comparison. 

exactly 

16 hours ago, spyguy said:

Barge pole.

rent then

18 hours ago, rickycockroach said:

The price had dropped in response to the crash when I bought it. 

Rick ignore it - there are certain people here who hate the thought that anyone owns a property and will make a dig at any opportunity - they cannot understand that we do not  all have to think the same way they do 

I would watch the market carefully it is not going up at the moment and the time to buy an additional share is when it reaches a low point.

Equally do not just wait and watch if prices start to go up - that is what many have done and no cant afford to buy

For goodness sake why do you not have a pension or any retirement plan?  Whatever you do you need to be making provision for retirement the state pension of £600 a month is poverty.  

Link to comment
Share on other sites

 

11 minutes ago, Locke said:

Would you describe Rick as a homeowner?

he is clearly part homeowner as he will have paid off some of the mortgage and says he has equity in the property

I am aware of the argument that if you have a mortgage you do not own a\ home but it is by paying the mortgage you become a home owner

The alternative is to rent and pay someone else's mortgage for them I guess unless you win the lottery 

Link to comment
Share on other sites

28 minutes ago, happyguy said:

FGS give it a rest  

RENTS IN THE PRIVATE SECTOR HAVE SHOT UP BY FAR MORE THAN INFLATION

exactly 

rent then

Rick ignore it - there are certain people here who hate the thought that anyone owns a property and will make a dig at any opportunity - they cannot understand that we do not  all have to think the same way they do 

I would watch the market carefully it is not going up at the moment and the time to buy an additional share is when it reaches a low point.

Equally do not just wait and watch if prices start to go up - that is what many have done and no cant afford to buy

For goodness sake why do you not have a pension or any retirement plan?  Whatever you do you need to be making provision for retirement the state pension of £600 a month is poverty.  

Not in the areas I follow.

The low - if any -  nominal rise in rents has been combined with move higher voids periods.

 

 

Link to comment
Share on other sites

50 minutes ago, happyguy said:

FGS give it a rest  

RENTS IN THE PRIVATE SECTOR HAVE SHOT UP BY FAR MORE THAN INFLATION

exactly 

rent then

Rick ignore it - there are certain people here who hate the thought that anyone owns a property and will make a dig at any opportunity - they cannot understand that we do not  all have to think the same way they do 

I would watch the market carefully it is not going up at the moment and the time to buy an additional share is when it reaches a low point.

Equally do not just wait and watch if prices start to go up - that is what many have done and no cant afford to buy

For goodness sake why do you not have a pension or any retirement plan?  Whatever you do you need to be making provision for retirement the state pension of £600 a month is poverty.  

Rents here haven't moved in about 15 years. I guess what you mean is rents in some areas have shot up. 

Link to comment
Share on other sites

46 minutes ago, happyguy said:

 

he is clearly part homeowner as he will have paid off some of the mortgage and says he has equity in the property

I am aware of the argument that if you have a mortgage you do not own a\ home but it is by paying the mortgage you become a home owner

The alternative is to rent and pay someone else's mortgage for them I guess unless you win the lottery 

He is probably better off selling his share and using HTB  on another place 

Link to comment
Share on other sites

On 02/04/2019 at 10:59, Captain Kirk said:

I would rent then. And if it gets cheaper to buy than rent, then that's the time to buy. In the event that the rent and price have gone up so much you can't afford either, cash in your chips and move somewhere cheaper.

2

Sounds sensible. 

On 02/04/2019 at 19:47, bushblairandbrown said:

Read John Kay the long and short of it. 

Bought and started - thank you.

On 02/04/2019 at 19:57, 24gray24 said:

I wouldn't buy more; prices are topping out. And beginning to drop. 

 

 I'm hoping a drop gets to my area. E8 seems to be riding another wave of developments, buildings going up everywhere, businesses and flats getting occupied. A flat in my block smaller than mine with no outdoor space (I have a small roof terrace) sold for 542k - 5 months ago. Eurgh.

Link to comment
Share on other sites

6 minutes ago, rickycockroach said:

Sounds sensible. 

Bought and started - thank you.

 I'm hoping a drop gets to my area. E8 seems to be riding another wave of developments, buildings going up everywhere, businesses and flats getting occupied. A flat in my block smaller than mine with no outdoor space (I have a small roof terrace) sold for 542k - 5 months ago. Eurgh.

Development is 3 years behind; so they're still finishing even after market stalls. 

Over supply of unsold flats really drives down prices. 

Link to comment
Share on other sites

On 02/04/2019 at 20:21, Bear Hug said:

Agreed. I'd certainly try to cash out if that is at all a possibility.  I can imagine these things are much easier to buy than to sell.

You'd be surprised. Progressively over past 10yrs, I've seen a few friends move into shared ownership (unable to afford to buy outright) and it's been very competitive (area specific, but this area is spreading wide) - they've had to go further out. Resales are snapped up if 50% or less, can be a bit slower 75 - 100%. Again, the area - decent amenities and it's well connected, commute times are fair. It's changed a lot over 10yrs. I should have seen it coming.

 

On 02/04/2019 at 20:25, Bear Hug said:

My first thought when looking at shared-ownership and equity-release prices in SE is: "this reduced price is still looks way too expensive even if it was for buying it outright"

Agree - prices are nuts and these are pitched as affordable. 10yrs ago they felt pricey but achievable over time. Full value was x5 my salary - which felt harsh back then. My salary increased over the years but the full value raced off ahead out of sight. 

Link to comment
Share on other sites

11 minutes ago, 24gray24 said:

Development is 3 years behind; so they're still finishing even after market stalls. 

Over supply of unsold flats really drives down prices. 

Ah ok.  Past 2yrs new builds on my road are going for 800k to a million. I wonder who the hell is taking them on. A few are empty - and I can see have had reductions in Feb. will keep watch. 

Link to comment
Share on other sites

19 hours ago, longgone said:

He is probably better off selling his share and using HTB  on another place 

I did not know you had a crystal ball - and why worry about what other people do in their lives I am sure he is not concerned that you have chosen to pay rent? 

21 minutes ago, Si1 said:

Don't feed the happyboomer troll....

Not a boomer little boy - unlike your parents who I guess are boomers !  homeowner yes sold a business and paid mortgage off.  

So I guess you think that rents have not risen far more than incomes/inflation in the last 10 years then?  If so why do you keep on whining about the cost of renting on here 

19 hours ago, longgone said:

He is probably better off selling his share and using HTB  on another place 

You have no idea of the gentleman's [personal  circumstances so you have no idea what is best for him any more than I do

19 hours ago, spyguy said:

Not in the areas I follow.

The low - if any -  nominal rise in rents has been combined with move higher voids periods.

No voids where I am in Berks and rents are astronomic 

Link to comment
Share on other sites

20 hours ago, happyguy said:

For goodness sake why do you not have a pension or any retirement plan?  Whatever you do you need to be making provision for retirement the state pension of £600 a month is poverty.  

 

Yep this I've overlooked. Have been focused on paying off the mortgage. As a contractor, I've missed out on workplace pensions. Retirement provisions will be the new focus if I give up on the idea of buying more of my home - seems I can't have both. Must say, I find the world of pension plans rather dubious - but I will explore. 

Link to comment
Share on other sites

1 hour ago, rickycockroach said:

Must say, I find the world of pension plans rather dubious - but I will explore. 

I work in pensions - if you have any specific concerns about what's "dubious" let me know.

Pensions legislation is ridiculously over-complex, but the fundamental idea is just:
- you put money in, max £40,000 a year, receiving income tax relief at your marginal rate in the year it's contributed
- you can't draw it out until you're within 10 years of State Pension Age
- you can then take 25% of the pot tax-free ['Pension Commencement Lump Sum'], and the rest (which you can draw in one go ['UFPLS'], or dip into as you like ['drawdown'], or by buying an annuity) is taxed at marginal rate

Most of the negativity comes from workplace DB pensions of companies that go bust (not an issue for you as you're a contractor) or from funds with excessively high annual charges (which you should watch out for) or from cynicism that the government will change the rules (which you need form your own view on).

Link to comment
Share on other sites

2 hours ago, happyguy said:

I did not know you had a crystal ball - and why worry about what other people do in their lives I am sure he is not concerned that you have chosen to pay rent? 

Not a boomer little boy - unlike your parents who I guess are boomers !  homeowner yes sold a business and paid mortgage off.  

So I guess you think that rents have not risen far more than incomes/inflation in the last 10 years then?  If so why do you keep on whining about the cost of renting on here 

You have no idea of the gentleman's [personal  circumstances so you have no idea what is best for him any more than I do

No voids where I am in Berks and rents are astronomic 

Well ....

Im rarely in n about Berkshire, @dougless and @Bear Hugare (I think).

We do have a magic thing called home.co.uk, which allows you to search towns for rentals.

Picking the larger settlements and using the default search parameter, I get the following number of ads:

Reading. 4 mile search: 2,034 ads

Wokingham, 2 mile search: 108

Bracknell: 3 miles search: 263

Slough, 2 miles 436

Maidenhead, 3mile: 377

Yes, my method is simple. Yes there may be double, triple counts. Yes, some of the property might be advertised before its empty.

Yes, the the price of rentals - at least on the first few pages, is very high. That might be why they are still listed.

But .........

There are lots of rentals available. And Id guess most are void.

Just picking Reading. wikipedia gives a population of ~200k. Using 3 people /dwelling, gives ~66k dwellings.

So, just this quick shows about ~2% of Reading entire housing stock is available for rent.

What do I take away from my quick, cheap n cheerful, dinner time investigation?

One, there's a *lot* of rentals in Berkshire. I I buy a house to rent Im faced with a lot of competition.

Two, there's a very large amount of hot money in Berkshire housing, some of which must be getting a beating in terms of voids.

Do I think Berkshire makes a area to invest my cash, in either an OO or rental. Do I F.

All IMHO + YMMV ....

 

 

 

 

 

 

Link to comment
Share on other sites

3 hours ago, rickycockroach said:

Yep this I've overlooked. Have been focused on paying off the mortgage. As a contractor, I've missed out on workplace pensions. Retirement provisions will be the new focus if I give up on the idea of buying more of my home - seems I can't have both. Must say, I find the world of pension plans rather dubious - but I will explore. 

Eh? Yu suer you arent a troll, hyping properdee as a magic investment, cure for cancer

Private pensions. Most workplaces are DC i.e. same as private pensions these days.

As a contractor Im eye brow over my head surprised that your accountant has not screamed at you to get a pension. Is the easiest, most tax efficient way of building wealth that youll need at a later stage in life.

I really dont understand this 'pension plans dubious' It more than suggests a level of money crankdom/naivety/financial simpleton/paranoia.

As a contractor, its simple - you save 20% of your earning - more if you can afford i, for 40 years. You save on income tax on your contributions.

Pick a plane which has low - under 2%. And keep going. You can change the makeup of your investments as you approach retirement.

 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

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.