Help to buy London, a complete joke

[Dr House]

In London, with the help to buy program the government will lend you 40% of the cost of new build home up to £600k interest-free for 5 years. They will own 40% of the value of your property.


So I have been looking around London, it seems the developers are selling everything to investors often outside the UK. The junk that is left behind that no one wants they bump the price to £600k for a 1 bed in a nice area and £600k for a 2 bed in an up and coming area and flog it to the poor soles in London who are now buying something they really can’t afford.


Some maths on a 600k flat

240k interest-free equity loan for 5 years

30k deposit

330k mortgage

£1100 repayment per month


So a family with a combined income of £73k and only a £30k deposit now has to pay £600k for a little flat and in 5 years find another £240k or whatever 40% of the market value is.


All this is doing is pushing up house prices, dumping poor quality stock on hard working people and “helping” the middle classes.


Instead of giving loans the government need to push the prices down, stamp out international investment on lower values flats (eg under £1.5m) and stop housing becoming a commodity.

 

[BDEE]

London house prices are actually contracting and have been for a little while now.

People don't HAVE to spend £600k on a flat in central London. And this is the exact reason why prices have started to decrease - Because people are voting with their feet and choosing to look a little further out and commute.

 

[Fusion]

Instead of giving loans the government need to push the prices down, stamp out international investment on lower values flats (eg under £1.5m) and stop housing becoming a commodity.

Don't think you'll find too many people disagreeing with that. Really makes you wonder how long the insane prices can continue. There's always talk of demand and immigration fuelling it which is true to an extent, but a large part must also be speculation and buy to let. There's no way price rises will continue or even hold static if interest rates ever rise.

Are you looking to live in the property yourself, or is it an investment for you?

 

[utajoker]

we used the first buy scheme 5 years ago and we now pay £32 interest on 22k every month.

We are in the process of selling and will be paying back in full once all goes through.

£240k is 10 times as much so the interest payment alone is over £330! and this does not pay off any of the loan.


Glad i live in Bolton with cheap houses XD

 

[Rroff]

choosing to look a little further out and commute.

Problem is this has resulted in increasing prices creeping outwards making the cost of living that much harder on people who live a but further out but not earning London/city wages (happening elsewhere in relation to bigger cities as well).

 

[Richie]

Scottish HTB is far better... Still pay back more if the price goes up but there is no interest on the Government loan part and only need to pay it back when the property is sold.

 

[Shoza]

It’s a complete scam propping up a failed housing market. The programme uses some of the housing budget/resources but actually makes housing less affordable. Government will do anything to keep it propped up since the loans are equity based and increasing house prices mean pure profit on the original loan.

Lots of people my age are leaving London to affordable cities in the North. I’ll never go back. I now own a 5 bedroom detached Victorian house in Manchester for £450k that blows anything I could get in London out of the water. Quality of life much better up north and wages really not that far behind and that’s before costs are accounted for. Salary wise we went from £120k combined in London to £115k combined in Manchester but my train costs £69 a month instead of £450 just to start with...

Forget London & this crazy product.

 

[Deus Ex]

I say this as shareholder of a housebuilder. Help to buy was never what it was called. It was help to sell. It props up new house builders and inflates prices. The government can not have houses drop in value, it is a vote loser amongst those already owning. This is the main benefit of a being a doctor, wages are national and making £60k in Wales for example is probably better than making £100k in London.

 

[Psycho Sonny]

Problem is this has resulted in increasing prices creeping outwards making the cost of living that much harder on people who live a but further out but not earning London/city wages (happening elsewhere in relation to bigger cities as well).

London is literally hell. Don't know why anyone would choose to live there.

I can travel from one side of Glasgow to the other 12 miles in 10 minutes. Same commute in London is 3 days by car.

Plus it's also full of morons cutting each other up and driving like maniacs

 

[daz]

Speaking as someone that loves London, I'd think about moving out to the sticks/commuter belt. There are places on the tube network (so you don't even have to pay national rail commuting prices) where that will get you a decent house.

 

[BongoHunter]

London is literally hell. Don't know why anyone would choose to live there.

I can travel from one side of Glasgow to the other 12 miles in 10 minutes. Same commute in London is 3 days by car.

Plus it's also full of morons cutting each other up and driving like maniacs

London can be great - but it's not a city that's not car friendly in any way, public transport tends to be quicker.

There are a lot of positives to it - loads of things to do and see, plenty of fantastic attractions, restraunts etc.

And though cost of living is very high - the job opportunities in many professions are numerous and we'll paid in my experience.

 

[Psycho Sonny]

London can be great - but it's not a city that's not car friendly in any way, public transport tends to be quicker.

There are a lot of positives to it - loads of things to do and see, plenty of fantastic attractions, restraunts etc.

And though cost of living is very high - the job opportunities in many professions are numerous and we'll paid in my experience.

There loads of things to do and see in any city, plenty of decent restaurants too, etc. Be it bangkok or marrakech. Every city has that and more. Nothing special about london at all.

As for well paid jobs it's a joke that doing the same job in london = more money. it's a pyramid and will collapse at some point. i've seen jobs advertised at 2 rates 1 national and then 8K more if you are in london. companies will soon realise that is unsustainable and move the work elsewhere.

 

[jaybee]

London is literally hell. Don't know why anyone would choose to live there.

I can travel from one side of Glasgow to the other 12 miles in 10 minutes. Same commute in London is 3 days by car.

Plus it's also full of morons cutting each other up and driving like maniacs

It's 600 square miles and the capital city. Glasgow is 10 times smaller. I don't think many people would judge any city based on what commuting by car was like, coz it will be ****. If you are not compatible with public transport then yeah, I'd avoid London.

 

[Psycho Sonny]

It's 600 square miles and the capital city. Glasgow is 10 times smaller. I don't think many people would judge any city based on what commuting by car was like, coz it will be ****. If you are not compatible with public transport then yeah, I'd avoid London.

regardless 12 miles is 12 miles. which is why i specified a distance. i can go anywhere in glasgow and be there within 15 minutes. even if it's 10+ miles away.

whereas in london it can take 3 hours to do the same journey. also public transport, how does that work when there are 5 of you? cost you a fortune in travel costs.

it's an awful city. i've been to bangkok and it reminded me of london it was quicker to walk than get a taxi the traffic is that bad. so we ended up walking to the sky train and using day passes every day. it had the added advantage of the fact only the middle class use the sky train and it was air conditioned. so you didn't have people trying to scam you or harass you as you travelled in the blistering heat.

 

[dr_volki]

regardless 12 miles is 12 miles. which is why i specified a distance. i can go anywhere in glasgow and be there within 15 minutes. even if it's 10+ miles away.

whereas in london it can take 3 hours to do the same journey. also public transport, how does that work when there are 5 of you? cost you a fortune in travel costs.

it's an awful city. i've been to bangkok and it reminded me of london it was quicker to walk than get a taxi the traffic is that bad. so we ended up walking to the sky train and using day passes every day. it had the added advantage of the fact only the middle class use the sky train and it was air conditioned. so you didn't have people trying to scam you or harass you as you travelled in the blistering heat.

not sure what this comparison has to with this thread?
i can go from a-b faster than you so it must be bad?
all big cities are all pretty bad for traffic, that's why if i were to chose to live in one i'd give up my car and get a moped or just use public transport.

also 12miles in 10mins = 72mph... so think your calculations are slightly out as you'd be over the national speed limit

 

[platypus]

A tax payer funded crutch desperately designed to prop up our dire housing market? Of course it's a joke.

 

[DXP55]

Ah -- I miss read your title - I thought you wanted help to buy London ??

 

[Psycho Sonny]

not sure what this comparison has to with this thread?
i can go from a-b faster than you so it must be bad?
all big cities are all pretty bad for traffic, that's why if i were to chose to live in one i'd give up my car and get a moped or just use public transport.

also 12miles in 10mins = 72mph... so think your calculations are slightly out as you'd be over the national speed limit

10% +3 rule to get done for speeding so you can do up to 79 mph safely

 

[d_brennen]

10% +3 rule to get done for speeding so you can do up to 79 mph safely

On an inner city road?

 

[rexehuk]

Move to Bristol. Get a bike. Become a vegan.