Jump to content
House Price Crash Forum
Sign in to follow this  
bomberbrown

More Government Propping Up Of Hpi - London Wide Initiative

Recommended Posts

I saw this in the back of a free paper on Friday evening on the way home from work. All I can say is that I was 'spitting feathers'!

This really is taking the pi$$! This is a much bigger afront to the humble tax-payer than the current Home-Buy scheme where you can get up to 25% off the purchase price for the first few years.

This on the face of it is 50% OFF THE PRICE, FOREVER, OFF A NEW BUILD FLAT PAID BY THE GOVERNMENT!!!!

http://www.housingoptions.co.uk/ho2/ho2/lo..._initiative.asp

http://www.barratthomes.co.uk/durhamcourt

Share this post


Link to post
Share on other sites

This is just council housing by another name. If the houses are decent to live in and the mortgage payments are less than paying rent on an equivalent property it looks like a no brainer for some people.

Of course, the small print is crucial here. What happens if the house falls in value?

Does the Govt share in the downside as well as the upside or does the buyer suffer the entire loss?

Does the buyer have to pay back their own mortage plus Govt loss in value?

What happens if someone wants to move in a few years after a drop in value?

Share this post


Link to post
Share on other sites

where do i sign? PFI council housing, have you walked round these part buy estates (or the area of the estate that is patry buy)? feral children, rubbish, battered cars lots of shouting, open frount doors.

Share this post


Link to post
Share on other sites
where do i sign? PFI council housing, have you walked round these part buy estates (or the area of the estate that is patry buy)? feral children, rubbish, battered cars lots of shouting, open frount doors.

Yeah but. No but!

I think you will find many of these will be bought by people who have no intention of living there themselves but rather subletting them out to immigrant workers. Providing the rental income is bigger than the mortgage outgoings - why not?

Share this post


Link to post
Share on other sites
What happens if the house falls in value?

Does the Govt share in the downside as well as the upside or does the buyer suffer the entire loss?

I've read about this type of thing before. The government does not share in the downside. It's like this...

You opccupy a £300k property...

You pay £150k, the government pays £150k...

House prices crash by 50%...

You subsequently have nothing...

The government still has £150k.

Effectively you pay for half a property when house prices are peaking and then watch your ownership of your half transfer to the government as prices fall, thus maintaining the government's equity. If you lose your job and have to sell-up you effectively hand your home to the government and wonder how you're going to cover the debt that you took on to buy it. Meanwhile the government accumulates a nice big portfolio of property which it effectively bought for post-crash prices in the pre-crash era.

This, to me, indicates three things...

1: The government believes that property is vulnerable

2: The government believes that jobs are vulnerable

3: The government is poised to acquire a huge portfolio of property as circumstances unfold to confirm beliefs 1 and 2.

Share this post


Link to post
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...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 295 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • 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.