Thursday, Sep 06, 2018

1980s style Shared equity all over again ?

Daily Mail: Help to Buy has left us trapped

A couple of weeks ago a colleague was discussing Help to Buy with me and I commented that it sounds to be no different from the Shared Equity schemes builders offered in the late 1980s, which ended up badly when prices stopped going up year after year.

Posted by tenyearstogetmymoneyback @ 09:02 PM (2916 views)
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3 Comments

1. jack c said...

The problem with SAM's (Shared Appreciation Mortgages) was largely related to rising house prices ie people felt that the the lender received a disproportionate amount at the end of the deal facilitated by rising prices.

Aberdeen and the surrounding areas are very dependent upon the Oil & Gas sector (as the article states) and any prospective buyer should be aware of this albeit the vested interests are never going to point this out ! As a very general rule of thumb Brent Crude @ $100 barrel Aberdeen booming vs Brent Crude @ $20 barrel Aberdeen bust and house prices in the area reflect this.

Friday, September 7, 2018 10:47AM Report Comment
 

2. mombers said...

Yet another example of the damage tying up so much money in housing has. Impedes labour mobility, puts family formation on hold, all sorts of terrible stuff. We have the worst of both worlds in that the alternative is renting, which offers the worst value for money of any major economy. Also wrecks family formation as all your plans school wise etc can be torn up with 2 months' notice

Friday, September 7, 2018 01:52PM Report Comment
 

3. nickb said...

When you sell a HTB the price falls because it is then not eligible for HTB credit from the govt. It's a second hand property. Astonishing the article does not mention this simple fact.

Tuesday, September 11, 2018 10:40AM Report Comment
 

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