Housing Association

[Magpie]

Well being in a Housing Association doesnt stop anyone becoming a professional.

I'm in a very similar situation - and very grateful that a HA flat got us through some difficult times even if now we are in a better situation.

Worth mentioning that HAs have changed a lot over the last few years. One problem is that, while they used to be fairly self-regulated and free in how they operated, they have been roped in to take the place of council housing in recent years. They often used to buy abandoned street properties or properties in need of renovation and let them to those who needed a cheap secure place to live. The mass sell-off of council housing at knock down prices left this country short of social housing and HAs have been obliged to fill more and more of their accomodation from local council homeless lists. That has changed the whole nature of the way that HAs operate. They used to be a cheap, cheerful alternative for those who needed them. Now they are de facto council housing, and are obliged to sell off decent old properties to partake in dubious new-build projects because of government guidelines. And because they are concentrating on new-build estates or blocks, there is an increasing chance of these becoming sink estates rather than the very mixed profile that HAs used to have. Current tenants can no longer get rehoused as 90% of the properties have to be allocated to council requirements. It's all a bit sad as housing associations used to be a viable alternative for those who weren't living the mortgage and job lifestyle, for whatever reason. It's a shame this government didn't have the balls to rebuild some decent social housing rather than farming it all out onto HAs, as good social housing makes a huge difference to the options society offers.

[sammysnake]

What to people here think to this

House valued at 140k 3 bed semi but in all honesty its a 2 bed with a store room

the share ownership is 50% at 70k..affordable

Now the rental is also 141£ per month

Who thinks this is a deal? I'm in two minds here because I know the house itself is well overvalued by at least 40k..the area not to great.

So obviously when this crash picks up speed my semi investment will reduce value, should I buy into this looking at the long term? I totally resent paying my lazy fat ******* landlord any more wad

[Elizabeth]

What to people here think to this

House valued at 140k 3 bed semi but in all honesty its a 2 bed with a store room

the share ownership is 50% at 70k..affordable

Now the rental is also 141£ per month

Who thinks this is a deal? I'm in two minds here because I know the house itself is well overvalued by at least 40k..the area not to great.

So obviously when this crash picks up speed my semi investment will reduce value, should I buy into this looking at the long term? I totally resent paying my lazy fat ******* landlord any more wad

Can you go for 25% at 35K? or is is fixed at 0.5 share only? The rent would go up (by about 70 quid a month) but the morgage would go down by 204 odd. Then, if it crashed through the floor you would have less to loose and if it stayed steady you could buy at a later date and be living in an even more affordable house house. A lot easier to take holidays with a 35K loan like that hanging over your head than 70K.

[waitingpatiently]

I have already written about my experience previously, but as the subject of Housing Associations keep coming up again, I would like to contribute again.

We bought a 50% share in a 1 bed flat from Home Housing Association in 1994 in South Harrow - our 1st marital home. We were there for 7 years. All the neighbours were decent hard working people on the first rung of the housing ladder. We all got on really well.

It was a good stepping stone for everyone, we all built some equity up and moved on up the housing ladder.

We sold our flat to a nurse on 19k.

Housing Associations are a great idea, although they operate differently and help people in different situations.Some fill the niche that used to be filled by the council, and house people on benefits but others are aimed specifically at working people.

If you read through the posts again, you will see those who have bought a share in a Housing Association home which is aimed at workers on low/average incomes all have positive things to say about them.

Please ignore the cynics, who have never bought one. They are only going on hearsay.

If you earn 25K or less, they are ideal for you. If the market crashes, you only have negative equity on the 50% share that you own.

Contact several and get information. They are there to help you, not rip you off.

[waitingpatiently]

What to people here think to this

House valued at 140k 3 bed semi but in all honesty its a 2 bed with a store room

the share ownership is 50% at 70k..affordable

Now the rental is also 141£ per month

Who thinks this is a deal? I'm in two minds here because I know the house itself is well overvalued by at least 40k..the area not to great.

So obviously when this crash picks up speed my semi investment will reduce value, should I buy into this looking at the long term? I totally resent paying my lazy fat ******* landlord any more wad

Please see my post above where you will see I have lived in a Housing Association property and definately recommend them.

This sounds like a good opportunity to me.

Ask how they came to the valuation. When we sold, we had to get 3 Estate Agents to give us a written valuation and the Housing Association said we had to sell at the average of the 3.

[2005]

Without being cynical I would just like to add a word of caution to anyone thinking about going down this path.

A good shared equity scheme is with a housing asscoiation or is a regulated key worker scheme.

BUT...developers have cottoned on to this and I see loads of schemes advertised as 'key worker' homes, 'affordable housing' , 'shared ownership', 'shared equity' etc etc..they are nothing of the sort. They are just a developers way of shifting their property with creative offers.

If you do decide to take this route make sure it is a proper scheme and not some advertising gimmick by a developer or you may end up paying more in mortgage+rent than it would cost to buy the place outright. You may also find yourself tied into all sorts of committments such as buying the rest of the share within a specified time scale.

[MRMX9]

For some housing association re-sale shared ownership properties being sold in Kensington and Chelsea by Notting Hill HA you need a minimum income of 60 grand!. Not all housing association properties are occupied by poor people!

[bigben]

I'm in a very similar situation - and very grateful that a HA flat got us through some difficult times even if now we are in a better situation.

Worth mentioning that HAs have changed a lot over the last few years. One problem is that, while they used to be fairly self-regulated and free in how they operated, they have been roped in to take the place of council housing in recent years. They often used to buy abandoned street properties or properties in need of renovation and let them to those who needed a cheap secure place to live. The mass sell-off of council housing at knock down prices left this country short of social housing and HAs have been obliged to fill more and more of their accomodation from local council homeless lists. That has changed the whole nature of the way that HAs operate. They used to be a cheap, cheerful alternative for those who needed them. Now they are de facto council housing, and are obliged to sell off decent old properties to partake in dubious new-build projects because of government guidelines. And because they are concentrating on new-build estates or blocks, there is an increasing chance of these becoming sink estates rather than the very mixed profile that HAs used to have. Current tenants can no longer get rehoused as 90% of the properties have to be allocated to council requirements. It's all a bit sad as housing associations used to be a viable alternative for those who weren't living the mortgage and job lifestyle, for whatever reason. It's a shame this government didn't have the balls to rebuild some decent social housing rather than farming it all out onto HAs, as good social housing makes a huge difference to the options society offers.

I have to agree that it is unfortunate as you say that Housing association properties have really become surrogate council housing which also means that they are not free to allocate housing with the freedom they once had but are now essentially surrogate council homes. I suppose its just the government privatising the provision of affordable housing.

[sammysnake]

Great

Thank you for all your replies about shared ownership.

Whilst I aknowledge the risks with shared ownership schemes I also acknowledge that the forthcoming crash will not hurt me quite as much if I bought the full 100% vale of 140k. First and foremost I desperately want a home I'm not in this to make money!

I have checked into the company, they are perfectly fine and the rent suggests that they are in it for the wad and in order to help me. At 143 a month for 50k thats not too bad at all. Also Elizabeth I did check if I can purchase a smaller share..ie 25% thus making my risk even less, sadly not possible. They only start on 50% with the option of 25% twice thereafter.

I'm absolutley convinced that interest rates will be on the rise for at least the next 5 years, with this in mind the FTB low rate fixed rate mortgage should cover me.

All this said, I will not tuch the market if this falls through I totally resent these fecking ludicrous asking prices it is an absolute disgrace