3 Bed £99,000

[johnnyboy777]

i can buy a 3 bed for £99,000 in south west england should i buy it is my question?

The House is Valued at £165,000 with the discount it becomes £99,000

it is discounted by 40% on the goverment affordable housing scheme, it is freehold and has only 1 restriction, which is that when i go to sell it in the future i must sell it at the same deal ie 40% of the Then Market Value.

i am FTB am want a home fed up of renting for years however im worried about falling house prices and being stuck in this one for years in NEG Eq,

i have to put in £15,000 deposit and borrow £84,000

if i wait, will a 3 bed come down to where i can buy it ie £99,000

Edited November 14, 2007 by johnnyboy777

[notfes]

i can buy a 3 bed for £99,000 should i buy it is my question?

it is discounted by 40% on the goverment affordable housing scheme, it is freehold and has only 1 restriction, which is that when i go to sell it in the future i must sell it at the same deal ie 40% of the Then Market Value.

i am FTB am want a home fed up of renting for years however im worried about falling house prices and being stuck in this one for years in NEG Eq,

i have to put in £15,000 deposit and borrow £84,000

if i wait, will a 3 bed come down to where i can buy it ie £99,000

JB, if you feel comfortable that you can afford the repayments, have done the math and can continue to repay this with a few possible shifts in costs over the next couple of years then yes. This seems on the face of it like a good deal - best of luck to you.

[stig of the dump]

i'm not going to pretent to know the answer. All i'm going to say is take what others say on here with a pinch of salt, there are many that have been predicting a crash for years, and it has never materialised. I personally believe there will be a drop in prices. But it's an opinion and only that, what you need to do is look at your circumstances and quality of life with either option. i.e dependants, outgoings, stability of home ownership and overall happiness etc.

I'm going to hold out for another 6 months or so and if there isn't any clear sign that they are going to drop, then I'll buy or emigrate.

Good luck whatever you decide to do.

[Tiger Woods?]

How much does it cost to rent a similar property in your area?

[yaakov]

i can buy a 3 bed for £99,000 should i buy it is my question?

it is discounted by 40% on the goverment affordable housing scheme, it is freehold and has only 1 restriction, which is that when i go to sell it in the future i must sell it at the same deal ie 40% of the Then Market Value.

i am FTB am want a home fed up of renting for years however im worried about falling house prices and being stuck in this one for years in NEG Eq,

i have to put in £15,000 deposit and borrow £84,000

if i wait, will a 3 bed come down to where i can buy it ie £99,000

really bizarre - how would one find out what 40% of market value was without selling it? Put it on the market, see what offers you can get, then surprise the person with the highest offer with a 40% reduction?

[johnnyboy777]

How much does it cost to rent a similar property in your area?

i am renting a simular house for £575 per month, and the mortgage on the new house is £567 so its less apart from House Insurance and stuff

[Pluto]

i can buy a 3 bed for £99,000 in south west england should i buy it is my question?

The House is Valued at £165,000 with the discount it becomes £99,000

it is discounted by 40% on the goverment affordable housing scheme, it is freehold and has only 1 restriction, which is that when i go to sell it in the future i must sell it at the same deal ie 40% of the Then Market Value.

i am FTB am want a home fed up of renting for years however im worried about falling house prices and being stuck in this one for years in NEG Eq,

i have to put in £15,000 deposit and borrow £84,000

if i wait, will a 3 bed come down to where i can buy it ie £99,000

My advice for what it is worth:

Stay well clear!

You will be able to pick up the same house for around 80K in a few years with no restrictions,

[johnnyboy777]

really bizarre - how would one find out what 40% of market value was without selling it? Put it on the market, see what offers you can get, then surprise the person with the highest offer with a 40% reduction?

The House is a new build and the now market value is supposed to be £165,000, and in the future when i go to sell i assume the valuation people will put a price on it, it is 1 house in 50 odd in a close that all have the same deal

[Objective Developer]

i can buy a 3 bed for £99,000 in south west england should i buy it is my question?

The House is Valued at £165,000 with the discount it becomes £99,000

it is discounted by 40% on the goverment affordable housing scheme, it is freehold and has only 1 restriction, which is that when i go to sell it in the future i must sell it at the same deal ie 40% of the Then Market Value.

i am FTB am want a home fed up of renting for years however im worried about falling house prices and being stuck in this one for years in NEG Eq,

i have to put in £15,000 deposit and borrow £84,000

if i wait, will a 3 bed come down to where i can buy it ie £99,000

Don't forget the rent on the unsold equity (2.75% pa of remaining balance, c.£150 pcm).

I would stay well clear.

[johnnyboy777]

My advice for what it is worth:

Stay well clear!

You will be able to pick up the same house for around 80K in a few years with no restrictions,

thanks for your reply, but a few years is a long time renting at £575 also it is a what if though isnt it that they come down so much

i am happy for your response though

john

[johnnyboy777]

Don't forget the rent on the unsold equity (2.75% pa of remaining balance, c.£150 pcm).

I would stay well clear.

how do you mean, there is no rent this is a freehold total sale

not part rent part buy

john

[Harry Sacks]

i can buy a 3 bed for £99,000 in south west england should i buy it is my question?

The House is Valued at £165,000 with the discount it becomes £99,000

it is discounted by 40% on the goverment affordable housing scheme, it is freehold and has only 1 restriction, which is that when i go to sell it in the future i must sell it at the same deal ie 40% of the Then Market Value.

i am FTB am want a home fed up of renting for years however im worried about falling house prices and being stuck in this one for years in NEG Eq,

i have to put in £15,000 deposit and borrow £84,000

if i wait, will a 3 bed come down to where i can buy it ie £99,000

Is this part rent part buy?

[lets get it right]

i can buy a 3 bed for £99,000 in south west england should i buy it is my question?

The House is Valued at £165,000 with the discount it becomes £99,000

it is discounted by 40% on the goverment affordable housing scheme, it is freehold and has only 1 restriction, which is that when i go to sell it in the future i must sell it at the same deal ie 40% of the Then Market Value.

i am FTB am want a home fed up of renting for years however im worried about falling house prices and being stuck in this one for years in NEG Eq,

i have to put in £15,000 deposit and borrow £84,000

if i wait, will a 3 bed come down to where i can buy it ie £99,000

Can you explain a bit more. Who owns it now? Is it new? What qualifies you for a discount? Who is paying the other 40% and to whom are they paying it?

How will the thing be managed when you want to sell it? Who is going to stand over you and make sure you sell it to someone who qualifies for affordable housing? Will you (i.e. your lender) get the deeds?

Edited November 14, 2007 by Lets' get it right

[Badger]

I'd wait until it's £100k then get your 40% off making it a jubbly £60k! nice.

[Bloo Loo]

I'd wait until it's £100k then get your 40% off making it a jubbly £60k! nice.

whatever the scheme is, and it sounds odd to me, you are wrong in saying you are buying a 165,000 house for £99K

You are buying 60% of a house, someone else owns the other 40%.

I would watch for what happens to the remaining equity in the event of a house price move- you may find that the other parties equity remains at 65K in the event of a decrease, but remains at 40% in an increase.

I dont think youll be getting the 40% for free in any case.

[R K]

On the face of it, it would appear that you are able to live in a £165k house for only £99k and nothing more to pay. I can see why this appears an attractive deal. However, remember there is no such thing as a free lunch. So work out where the downside risks are. I can see a few obvious ones:-

* It is a new-build development. Therefore the valuations are whatever the builder/valuer says they are. You have said all similar houses in the dev. are on this scheme. Thus there is no "market price" to validate £165k against. Assume it is thus fictitious and to the benefit of the developer not you, unless you can prove otherwise.

* Read the small print on the 40% "discount". Especially what happens when you sell if it has risen in price and if it has fallen in price. Be very clear about what happens if you should for whatever reason get repossessed.

* Work through 3 scenarios and see what it will mean to you in each case. 1. House prices have risen when you come to sell in the future. 2. House prices fall when you come to sell in the future 3. House prices stay the same. e.g. Let's say they rise 20%. That means the eauivalent house will rise £33k. But you're £99k will only rise £19.8k. i.e. You will be £13.2k relatively worse off if you want to ever trade up. IF they fall it looks like you may be better off relatively, but check the small print to confirm this.

* Mortgage - Are you forced to use a specific lender? Is it the best deal for you? etc etc.....

If you are happy with all the conditions then it is your risk, but I would question why you don't feel able to wait maybe 2-3 years before committing. Patience really is a virtue as far as long-term debt is concerned. Weigh up what is more important to you - risk of losing money or pain of renting.

[bomberbrown]

i can buy a 3 bed for £99,000 in south west england should i buy it is my question?

The House is Valued at £165,000 with the discount it becomes £99,000

it is discounted by 40% on the goverment affordable housing scheme, it is freehold and has only 1 restriction, which is that when i go to sell it in the future i must sell it at the same deal ie 40% of the Then Market Value.

i am FTB am want a home fed up of renting for years however im worried about falling house prices and being stuck in this one for years in NEG Eq,

i have to put in £15,000 deposit and borrow £84,000

if i wait, will a 3 bed come down to where i can buy it ie £99,000

I'm gonna treat this as a troll/wind-up post until someone can provide a link to substantiate this 40% discount. The biggest discount scheme I'm aware of is the Newbuild Home Buy which is 25% discount (12.5% + 12.5%).

[dubsie]

i can buy a 3 bed for £99,000 in south west england should i buy it is my question?

The House is Valued at £165,000 with the discount it becomes £99,000

it is discounted by 40% on the goverment affordable housing scheme, it is freehold and has only 1 restriction, which is that when i go to sell it in the future i must sell it at the same deal ie 40% of the Then Market Value.

i am FTB am want a home fed up of renting for years however im worried about falling house prices and being stuck in this one for years in NEG Eq,

i have to put in £15,000 deposit and borrow £84,000

if i wait, will a 3 bed come down to where i can buy it ie £99,000

The problem is if the house loses value you will be expected to sell at 40% less than the market price value....therefore there's still a chance you can lose money.

The flip side if you wait and lose the opportunity then will there be another chance to buy a similar discounted house, if not then it's worth risking 10-15% off your asset. In reality you're not going to be able to buy a house in the south west for £99,000 even if property does crash.

[dubsie]

I'm gonna treat this as a troll/wind-up post until someone can provide a link to substantiate this 40% discount. The biggest discount scheme I'm aware of is the Newbuild Home Buy which is 25% discount (12.5% + 12.5%).

Such schemes do exist in the south west due to it being one of the most expensive parts of the UK. I think the schemes have long waiting lists though and you have to prove that you have been a resident of the area for a certain amount of time.

[Jason74]

i can buy a 3 bed for £99,000 in south west england should i buy it is my question?

The House is Valued at £165,000 with the discount it becomes £99,000

it is discounted by 40% on the goverment affordable housing scheme, it is freehold and has only 1 restriction, which is that when i go to sell it in the future i must sell it at the same deal ie 40% of the Then Market Value.

i am FTB am want a home fed up of renting for years however im worried about falling house prices and being stuck in this one for years in NEG Eq,

i have to put in £15,000 deposit and borrow £84,000

if i wait, will a 3 bed come down to where i can buy it ie £99,000

I would agree with others on here that the deal sounds too good to be true, and that there is likely to be a sting in the tail somehwere (you Solicitor should be able to confirm this one way or the other to be honest, and what the "sting" is if one exists).

However, my own view would be that IF you want to stay in the area long term, and IF the deal is as straightforward as presented above, I would have no hesitation in going for it. A 3 bed house should be big enough even when you have a family, so you will have no need to move for some time (if indeed ever). It sounds as though the house is affordable, and offers a relatively low cost way to acheive the security of home ownership.

Yes prices MAY come down significantly (be wary of anyone who says that this is a guaranteed outcome), and this could leave you in negative equity. However, if the house is affordable, and a home you want to live in long term, I would personally be happy to take that risk. Remember that not buying is also a risk, in that (unlilkely though it may seem righ now), we could be in nothing more than a slowdown before rampant HPI kicks in again in the relatively near future.

If this deal is what it seems (and I repeat that I have my doubts), then it is unlikely to be available again if you don't take it up now. Given that, in your shoes I would (again assuming I saw this house as a long term home) be far happier to take the risks associated with buying, than I would with the risks associated with letting the opportunity pass by.

I have to say that the above is only my opinion, based on very limited information. Only you can decide how to proceed on a matter like this, as it is you (and you alone!) who will live with the results of the decision.

[right_freds_dead]

i can buy a 3 bed for £99,000 in south west england should i buy it is my question?

The House is Valued at £165,000 with the discount it becomes £99,000

it is discounted by 40% on the goverment affordable housing scheme, it is freehold and has only 1 restriction, which is that when i go to sell it in the future i must sell it at the same deal ie 40% of the Then Market Value.

i am FTB am want a home fed up of renting for years however im worried about falling house prices and being stuck in this one for years in NEG Eq,

i have to put in £15,000 deposit and borrow £84,000

if i wait, will a 3 bed come down to where i can buy it ie £99,000

if your happy to spend the rest of your life in the property, neg equity or not, buy it.

if you plan on moving up ladder, area etc. dont buy it.

[GAL BEAR]

i can buy a 3 bed for £99,000 in south west england should i buy it is my question?

The House is Valued at £165,000 with the discount it becomes £99,000

it is discounted by 40% on the goverment affordable housing scheme, it is freehold and has only 1 restriction, which is that when i go to sell it in the future i must sell it at the same deal ie 40% of the Then Market Value.

i am FTB am want a home fed up of renting for years however im worried about falling house prices and being stuck in this one for years in NEG Eq,

i have to put in £15,000 deposit and borrow £84,000

if i wait, will a 3 bed come down to where i can buy it ie £99,000

My opinion (for what its worth) is this...

You are in the same 'boat' as me and I am a lot older than you I'm guessing ( I am 46)

There is NO WAY I would buy at present, this is the TOP of the bubble after all.

I asked a FINANCIAL ADVISOR the same question last week (I knew the answer of course but just wanted to hear his point of view).

He said NO WAY to even thinking about buying a property at present.

Think about it, whats the worse that could happen?

Prices sure are not going to go up any more over the next few months, i think we can all agree on that at least so its not as though you may feel desperate or 'panicked' into buying like so many silly people have over the last few years. The very worse that could happen is they stay the same (although I think most of realistically know this is looking very unlikely)

You are in a VERY good position at last, bide your time and just see what happens.

You really would be mad to do anything different for now.

If you see a house that is 'realistically' reduced then if you can afford it then go for it if it makes you

happy to do that, but by realistically reduced I mean at least 20 grand!

Well thats what I think, Good luck !!!

[johnnyboy777]

whatever the scheme is, and it sounds odd to me, you are wrong in saying you are buying a 165,000 house for £99K

You are buying 60% of a house, someone else owns the other 40%.

I would watch for what happens to the remaining equity in the event of a house price move- you may find that the other parties equity remains at 65K in the event of a decrease, but remains at 40% in an increase.

I dont think youll be getting the 40% for free in any case.

Well Apparently Summerfield Developments are getting the lAND For free from the local council as long as they give a 40% discount to people on the council waiting list to buy it.

i dont know how they hold you too it when you go to sell other than through solicitors etc, also when i got the mortgage i was told that only certain mortgage companys are doing this type of mortgage

its a thing that is going to happen more often im told to help people buy thier homes, heres the link to more info

http://www.summerfield.co.uk/press/2007-27-04-cobb.html

http://www.summerfield.co.uk

john

[GAL BEAR]

also think on this .....

In the early 90's my sister and i looked at a house to buy, it was on for about 80 grand (can't recall the exact price).

Anyway (luckilly for us as it turned out ) the house got repossessed as the couple selling it got divorced, becuase of this it took ages to all go thru (6 months as I recall).

When we finally went to buy it our Mortgage offer had lapsed and we had to have the house re-valued.

The new valuation was about 50 grand (or thereabouts).

This was in the middle of the last crash !

Imagine how sick we would have been if we had paid the 80 grand and then its value had dropped (which of course it did). We would have been paying a mortage of say £500 a month when a few months later it would be say £300 (not sure about figures but you see my point).

I really do not care if the value of my home drops, what I DO care about is paying a higher mortage than i really need to..... think on that .....

[Downtraded]

This sort of thing dismays me.

Why the hell should I as a taxpayer fund you to buy a house?

Not only that but its a sickening election bribe - to ensure that all those on the waiting list vote Labour.

The other effect is that it helps to prop up house prices in your area (and so floating voters won't get upset with Labour)

Anyone taking up this offer deserves more contempt than a BTL'er