FTB get up to 50 percent off the cost of special new build home

[413x]

This seems like a win win scenario for anyone getting one. And a big kick to anyone who can't get one. As appears to be only going forward on pre selected homes.

I can't quite discern the details but here it is

https://www.google.com/amp/s/amp.th...-in-england-offered-new-homes-at-up-to-50-off

Potentially 50 percent off a home with no rent etc to pay on the other half.

Landing one of these means if you never move you have a tiny mortgage, could buy up other property to rent out etc etc. It's a massive massive win for anyone who gets one.

Imagine paying 400 rather than 800 ppm and having a 800ppm home! Feels like anyone who gets one is onto an absolute massive winner.

How will they decide who gets these homes? Because it could be life changing for those who do/don't!


Personally I don't agree with it. As it has to be means tested or a lottery. It makes it really hard for FTB. Do you hold out to get one. And put off purchasing a new home at full price if you can afford it?
How will they prioritise?it will further boost house prices making it harder for anyone who can't get one.


Edit
Looks like you can only sell to new FTBs

 

[413x]

I'm not a fan of any scheme like this that isn't a level playing field. At least help-to-buy was available to all.

This will benefit a small number of FTB significantly

 

[413x]

I think the OP means the above in a negative way, but for any persons who are able to land one of these houses, they will have more spare funds so might have the resources to buy additional property that they can then rent out - so a further kick in the teeth for those left out (i.e. they end up renting a second property from one of the beneficiary's of the above scheme, so not only are the beneficiary's getting a cut price brand new house, but also some other poor mug paying off their mortgage on a second property).

Hopefully there'll be conditions that you can't own any other property and if you ever do the subsidy ends (but how they'd control this where there is a couple and only one person is the applicant I wouldn't know).

And I agree above the 80k limit seems rather high, pretty easy to buy a house on this income - don't need to go and get a 5 bed detached house with a double garage for your first place, do what most people do and build up steadily, but on this scheme it seems that you can likely get a house a few rungs up the ladder in the first place (if I'm right understanding that at typical rate of 4.5x joint income, so 80k = 360k, so a potential total property value of 720k if max. 50% discount). Assume though that houses of this stature price wise might not be the aim of the scheme, so it might be mostly smaller places aimed size wise at the typical FTB.

Yeah this.
80k is very high.
Anyone who is at the upper end of this could end up with a cheap house, low mortgage, ability to save and develop a portfolio due to government help. Or tax payer help.

It absolutely should not extend to 80k.

 

[413x]

Let's be fair, it isn't a level playing field now is it. The price of houses is ridiculous

No its not. The endless tampering to keep house prices growing is going to bite at some point.



The previous shared ownership was a bit fairer really. You were still incentivised to buy out the whole house.
With this one you aren't.
If you got this 500k house for 250 under this scheme it's quite possible you'd never need to move. A 500k house is a lot more than most will ever get (taking prices today).
If you moved you'd be downgrading. To upgrade You'd need to move to a 600k house (let's say) but stump up 350k of non existent equity.

This is set up to give people potentially a forever home at half price. It's crazy.

 

[413x]

I find that such a strange justification for not owning a house, considering the amount of money you put into your own pocket via a mortgage and will make in appreciation if you buy your own house will almost definitely far out way some interim repairs.

Also, i cant think of anything worse than renting for ever and having a mortgage/rent when you retire. The plan should most definitely be to be mortgage free before retirement!

This is it isn't it. You'll never retire if you don't own a house. Rent will go up with inflation but 0 is still 0 if you're mortgage free