Shared ownership - Worth it?

bum

bum

bum

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Shared-ownership makes home ownership more affordable because you can part buy and part rent your home, does this mean that you pay the initial share and pay rent every month until you eventually buy more share as you earn?

What are your thoughts on this? Would it be a good thing to be invest in? I was checking out some 2 bedrooms flats down at Docklands in London with river view would cost around £50,000 or less with shared ownership scheme. The flat is considerably big and new as well.

Anyone could shed some light on this?
 
i bought a share of a flat in docklands, it was a lot more than your quoting and we had to pay rent on the rest, it worked out badly as its lost equity, it was over priced in the first place and they stick the rent up each year, if its with one housing group do not want!

i am sure other schemes may be good but i didnt feel it was worth it.
 
its a con dont buy into shared ownership lots and lots of reason, one you could be living next to chavs. The flats are crap, you have to pay in full any upgrades done to the building etc... you'll end up paying for everything worse than renting from a landlord.
 
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So I guess the old saying applies again: If it's too good to be true, it probably is.
 
There have been a couple of shared ownerships pop up in my town.

Very nice looking houses in quite a nice area, the house to buy on a 50% is £77,000. At 1st I was getting quite excited until I realised that with the rent you pay on the other 50% it is no cheaper a month than buying another house that I could own 100%.

Have a look into house builders schemes, they have various offers available for 1st time buyers, like paying the deposit which you dont need to pay back for 10 years with the intrest frozen etc etc.
 
im in a shared ownership key worker house, its great because otherwise I would never be able to afford to buy a house where I live
 
I've come close to buying shared owner ship and I intend on doing this in the future. Its the only option for me as a single person.

I dropped out of the last pruchase because of the rent side, the building up keep was £75 a month....for maintainence etc....rip off !

However the place was very nice and it was 25% for £30k.
 
I'm getting the keys to my first house at the end of the month. Went through David Wilson Homes, a brand new house on a brand new estate. The way they work it to help people get into a house is a 85/15 split on the value of the house. You get a mortgage for the 85% and the 15% is basically a loan that you have 10 years to pay back. Bear in mind the 15% is 15% of the value of the house at that point in time.
 
mattheman said:
its a con dont buy into shared ownership lots and lots of reason, one you could be living next to chavs. The flats are crap
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Ok, lets pick this apart...

1 - could be living next to chavs: and that is different to a normal house / flat / property?

2 - flats are crap: expand on this please, what flats are crap, are you talking the build quality or what?
 
they use to look really bad, but now they are looking more attractive. the houses seem to be at market price and the rent is really low. But like all these schemes you buy the rest at market value. But it's not the end of the world. depending hwo long you wait house prices will rise anyway.
 
Morba said:
1 - could be living next to chavs: and that is different to a normal house / flat / property?
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If they're cheap you're likely to get scum moving in, also if the developers can't move the properties they sell on to the council who then move in people on benefits

Morba said:
2 - flats are crap: expand on this please, what flats are crap, are you talking the build quality or what?
Click to expand...

This depends solely on the developers, you'd need to see the property before hand to determine this.

EDIT: avoid Barratts

MW
 
Mr-White said:
If they're cheap you're likely to get scum moving in, also if the developers can't move the properties they sell on to the council who then move in people on benefits



This depends solely on the developers, you'd need to see the property before hand to determine this.

EDIT: avoid Barratts

MW
Click to expand...


This is no different than any properties though. If you are saying there is a higher chance of having scum move in next to you, do you have any proof of this? I think it is scaremongering.

Exactly, it depends on the developers, but then as a buyer you would be mad to buy a **** new build anyway. Shared ownership or not, you dont buy something that is crap.
 
how is rent money just money down the drain? anything that you know that hasnt been said before?

why are you likely to be living next to someone renting on a council estate?
 
The big question for me is whether you still need a deposit based on 100% of the house value? I've had a few offers of mortgages that will easily cover the houses I'm looking at, but since I don't have a 15%+ deposit I can't buy anything. If I'm only buying 50% of the house, do banks treat this as a 50% LTV mortgage?
 
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