which is not possible for many people and when you consider that the scheme is actually very good, far cheaper than any other way of securing the money and with a bonus of a guarantee, if market drops again.
Homebuy = Ripoff
- Thread starter Wizzkidy
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which is not possible for many people and when you consider that the scheme is actually very good, far cheaper than any other way of securing the money and with a bonus of a guarantee, if market drops again.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
For these people, rented accomodation is available.
hang on, you're moaning about spending £1100 to live in a £260,000 house?
Sorry, sounds heartless, but thats pretty cheap even if you were renting - the fact you'll own a bit is a plus.
I'd like a 5 bed gated road manor house, but dont want to pay the £4000/month to live in it, poor old me!
Do what we did - relocate, get new jobs. Meant we went from a small 3 bed to a spacious 4 bed detached, conservatory, new kitchen etc...
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Soldato
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Im not sure if ts worth me bothering.
The homebuy scheme is not, i repeat not a cheap way to buy a house.
It is very expensive, about the most expensive legal way you can buy a house unless over 25 years the price of a house has gone down in real terms.
But if you want to its your funeral, fill your boots but i would suggest never thinking of going into finance/banking/accountancy for the sake of humanity.
[TW]Fox;17096224 said:
why not use the scheme if it's available.
if the scheme wasn't there or the scheme for what ever doesn't suite you, then I agree.
I don't think I ever said it was.
I said it's a way of buying a house and not as bad as you think and not as expensive as borrowing the money from other sources.
no house prices are currently crashing and the double dip is coming.
house prices have a long way to fall, way beyond any deposit.
The good news for potential purchasers is that the house they wish to buy will probably be under valued for the mortgage anyway.
How do you have a mortgage when you said in another post that you were in an IVA?
This is half the problem with society isnt it, everyone wants everything, right now, and feels its a right to own a house, etc etc and they dont seem to care if they run up enormous debts in the process
Soldato
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By crashing do you mean UP 5% compared to this time last year with a 0.6% rise in July month on month ?
Remember at the low point of the fall prices only fell back a few years and a good chunk of that has been recovered already.
Trust me when I say I fully understand how mortgages work and can quite happily calculate interest and capital repayments of loans be they mortgages or not.
You've given the government £4,500 of profit. Are we arguing about the same thing? My impression of your initial post is that you're saying Homebuy costs you money. They do but (assuming) house prices go up enough it costs you in profit on the house. So you make less. But you still make money (again assuming house value increases above indexation).
So are you beginning to argue they cost money (which is obvious) whilst I'm arguing you can still turn a profit on one (which is also true). Cos if we are this could go on for a while...
[TW]Fox;17096224 said:
But to be fair, I see a lot of threads on here where people who rent (like myself) get lectured on how to live their lives and that renting is a waste of money and very expensive and a choice you made...bla bla bla. You can't really win on here. I don't think the OP feels housing is a right, he is merely stating how hopeless it is right now for people in the UK.
The housing ladder is impossible to get on to unless you are a couple bringing in a very good combined income. In fact, an unlreastic one. If one person in said couple wishes to stay home to look after their child they lose half of their income. If they try to stay at work and put their child into care, the childcare cost is so high, that this wipes out any gain in working.
I'm not moaning for the sake of moaning, but for some people the reality is that buying a house is not an option in their lifetime at all if things continue as they are, which it looks like they will. I can only speak for my area, but a house is so unrealistic, I basically refuse to give my family a bad life just to spend 10 years stubbornly saving every penny for a deposit for a house while we rent. I'd much rather plod along living "comfortably" renting longterm. I really don't care that it's not my house and that I line someone elses pockets. Lucky him, unlucky me, but atleast we are happy.
haha, seriously, do your research they are crashing right now. The MSM such as the BBC only latch on about 6 months after the fact. The future is not in house prices, the coalition don't want it there. IMO they are correct.
Damn houses in the rest of the UK are cheap!!!
I used to live in Sydney and you are lucky to find a decent two bedroom flat for £260,000. London-Sydney seem to be on par which means i gotta get out of London
I used to live in Sydney and you are lucky to find a decent two bedroom flat for £260,000. London-Sydney seem to be on par which means i gotta get out of London
thats why houses in my street have gone up £15 in 10 months? Riiiiight...
How do you have a mortgage when you said in another post that you were in an IVA?
I've purchased with my gf. Mortgage is in her name alone until my IVA ends, then I will be added on.
She pays the mortgage, I pay for all bills and food, balances it out.
This is another reason why the scheme works.
If you still live at home with you parents, then sucking it up and saving like mad is the best way to get your own place, but it isn't an option for many people.
Renting a room in a houseshare was only marginally cheaper than the mortgage on our OWN place, but we didn't have the 30% deposit needed. The mortgage offer was only based on my gf's earnings, due to my IVA.
The HBD scheme meant that we were able to use it to cover 25% of the 30% needed as a 'deposit', so we only actually paid 5% deposit.
In 3 years time my IVA is wiped, and we can either re-mortgage with me included to staircase, or sell up, and get a new place with my earnings factored in to the mortgage.
We aren't trying to make money, we're just trying to stop wasting it by way of renting in London, thereby giving us greater purchasing power for our next place.
[TW]Fox;17099574 said:
*sigh*
We've signed up legal documents verifying that in the event of our relationship ending, assets will be split evenly between us. An anti-pre-prenuptial if you will.
Another way of looking at it is that she cannot afford the place by herself on her salary, and I am currently slightly better off than renting even if I had no stake in the property at all.