Shared ownership or try and buy outright?

churchhawk

churchhawk

churchhawk

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I Split with my X and sold our house, I have around 40k ( have a bit more but I don't want to be skint ) for a deposit on something.

Been looking into shared ownership, 1 bed flat 155k 50% share.

The other option I have is to get a mortgage and get a lodger and maybe get a small 2 bed house or flat and buy that outright, although the amount they lend nowadays to salary ratio isn't looking good for a single bloke.

My age is against me also at 40 years old I cant dither about and need to get back onto the property ladder.

Anyone got any advice, I just cant seem to decide if shared ownership is really glorified renting or not !?
 
im in shared ownership and my advice is buy outright. The rent side keeps going up every year and what im paying now i could get a full mortgage

Alex
 
telewebby said:
im in shared ownership and my advice is buy outright. The rent side keeps going up every year and what im paying now i could get a full mortgage

Alex
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Is correct.

You rent the other part you don't own so if you can't afford to buy outright then you can't afford to buy shared ownership.

Shared ownership is a scam dreamt up by estate agents and developers to tie you into something that will cost you an arm and a leg. You usually have to buy the part you don't own after a determined period of time too. If you can't then you're snookered even more.
 
155k for a 50% share of a 1 bedroom flat? I assume this is London or somewhere equally ridiculous. :eek:
 
Reading this thread makes me sad, one bet flats for £155k wtf, average salary is what £25k.

Housing market is being propped up by the Tories and Labour. All these schemes they have.

The housing market will crash at some point.
 
Jopabo said:
Reading this thread makes me sad, one bet flats for £155k wtf, average salary is what £25k.

Housing market is being propped up by the Tories and Labour. All these schemes they have.

The housing market will crash at some point.
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Millions of people earn enough to be paying the higher rate (40%) of income tax. Then you have companies and individuals with a significant amount of assets who purchase multiple houses.

There is plenty of rental demand for 1 bed properties in the South East, which props up the house price. Often they have the highest yields.

The average income doesn't tell you anything in the OPs case.

However, shared ownership schemes do often inflate the price of the property. It makes an absurd £300k price for a 1 bed place more tenable if you frame it as a £150k 50% share property.
 
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Jopabo said:
Reading this thread makes me sad, HALF OF one bet flats for £155k wtf, average salary is what £25k.
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Fixed that for you :(

I've never understood the appeal of shared ownership.

It's not your house/flat, it seems to give you the majority of negatives of both ownership and renting (e.g. you can't rip half the walls down and redecorate if you wanted to, your rent could go up pretty much at the whims of the landlord, half your payment is going to line someone else's pockets rather than increasing your equity, if you want to move you still have all the hassle of selling, you're responsible for maintenance, etc.), without many of the benefits of either.

drakioned said:
Buy outright, if it doesn't seem affordable, move further out until it is.
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I'm assuming by "buy outright" you mean "mortgage outright"? since the majority of people don't have several £100k just sat in their bank account to buy a house/flat in cash. :p
 
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I feel these shared ownership offerings are no more than an elaborate con made up by the government to keep the property market buoyant and promote 'entrepreneurship's'.

These are no more than a PFI for the man on the street - you have a mortgage and then a rent which you have no control on the increases from owner.
 
Definitely buy 'outright'. Shared ownership is a scam. Having said that, myself and a lot of my friends who would like to buy (but can't because we're in London) are fully expecting a housing market crash soon. Maybe a new government will be the trigger.

House prices at 10-16x salaries is not sustainable. People buying all these new flats in London then leaving them empty is also not sustainable. What do you think all these Chinese and Malaysian investors will do once the prices start to waver? It'll be sell, sell, sell as quick as you can. It will implode. Fingers crossed it all goes to pot soon.

So, my advice would be to wait until at least after the election.
 
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