shared ownsership on a house/flat
Discussion
afternoon guys
its about time i got on the property ladder but i am faced with several downfalls which is why im looking at a shared ownsership/part buy part rent.
i live in buckinghamshire
i earn an average wage
i will only have a several thousand as a deposit
i do not sell drugs, pimp women or have any other means of earning big money fast.
now i know i cant get a mortgage on my own round here, my friend had a 35k deposit and 20k annual salary and nowhere would touch him.
another friend is on the same salary but has gone with part buy part rent, all he needed was a 5k deposit and the place was his! brand new 2 bed apartment where he is paying 25% of the value on a mortgage and the rest in rent. i cant remember the exact figures but its something like £150p/m for the mortgage and around £250 p/m rent. the idea is that over time you take out another 25% or 50% mortgage again until you own the place outright.
at the moment i cannot see any other options, i dont want to rent as its dead money and wont get a council place so no point even trying
what are your thoughts please guys
its about time i got on the property ladder but i am faced with several downfalls which is why im looking at a shared ownsership/part buy part rent.
i live in buckinghamshire
i earn an average wage
i will only have a several thousand as a deposit
i do not sell drugs, pimp women or have any other means of earning big money fast.
now i know i cant get a mortgage on my own round here, my friend had a 35k deposit and 20k annual salary and nowhere would touch him.
another friend is on the same salary but has gone with part buy part rent, all he needed was a 5k deposit and the place was his! brand new 2 bed apartment where he is paying 25% of the value on a mortgage and the rest in rent. i cant remember the exact figures but its something like £150p/m for the mortgage and around £250 p/m rent. the idea is that over time you take out another 25% or 50% mortgage again until you own the place outright.
at the moment i cannot see any other options, i dont want to rent as its dead money and wont get a council place so no point even trying
what are your thoughts please guys
'A first-time buyer without a City job, wealthy parents or key-worker status is not a first-time buyer. He or she is a long-term tenant.' http://property.timesonline.co.uk/tol/life_and_sty...
Maybe it's time to think of renting as buying a service rather than simply 'dead money'?
Maybe it's time to think of renting as buying a service rather than simply 'dead money'?
firstmk1 said:
'A first-time buyer without a City job, wealthy parents or key-worker status is not a first-time buyer. He or she is a long-term tenant.' http://property.timesonline.co.uk/tol/life_and_sty...
Maybe it's time to think of renting as buying a service rather than simply 'dead money'?
sorry would only rent as a last resort, just had a break through with a friend who is up for buying together.Maybe it's time to think of renting as buying a service rather than simply 'dead money'?
so thats 40k a year on joint salary and 10-15% deposit will make buying round here possible
so problem solved
am i the only one who is so negative towards renting?rich85uk said:
sorry would only rent as a last resort, just had a break through with a friend who is up for buying together.
so thats 40k a year on joint salary and 10-15% deposit will make buying round here possible
so problem solved am i the only one who is so negative towards renting?
A joint purchase between friends is fraught with problems, mainly because it's more likely that either purchaser might need to move than a couple, eg:so thats 40k a year on joint salary and 10-15% deposit will make buying round here possible
so problem solved
am i the only one who is so negative towards renting?- What if one of you loses your jobs, can the other pick up the slack? Would the other person expect the 1/2 payments to be repaid to them? What if they can only find a new job 200 miles away?
- One of you finds a partner and wants either rent "their room", move them in, or wants to sell the house?
- A total breakdown in the friendship.
At the very least I think renting a house/flat together is a good idea to begin with, at least you will be saving a lot of money on renting alone.
Edited by Gareth79 on Monday 24th May 14:17
IMO you need to be committed to buying more of the % to make it work long term........also be very careful about the type/location of the shared ownership property........better to buy shared ownership property tacked on to a private development rather than a one of a few shared ownership within a council/housing association scheme/site.
The reason I say about buying more is that your rental element will go up by RPI (or thereabouts - check the small print) and so you will eventually (and sometimes it doesn't take that long) pay more than if you paid a mortgage on 100% from the start (that you can't afford). Just think if you are 25 and get a 25 yr mortgage and let's say you didn't buy any more % you will still be the 75% paying rent from 50+ and this rent won't have devalued over the years like mortgages do.
It could work for a family buying a 3 bed 30-50% share to raise a fmaily with a view to downsizing to a flat in retirement, ie 50 % of the 3bed come mortgage fully paid off time might be able to buy outright a flat...
It could work for a first time buyer that may have an inheritance due at some point that could be then used to purchase outright......
But someone who finds any property unaffordable and this would appear the only logical option then i'd just think carefully about it and do the sums and project forward all the way through to the end of the mortgage term.
A plus point is that depending on the agreement you can purchase the other % at current market value and so there is the possibility of buying cheaper %'s in the future if prices drop, as opposed to buying outright and being exposed to a higher chance of large negative equity.
Maybe rent a place with your mate for a time to see how that goes?
The reason I say about buying more is that your rental element will go up by RPI (or thereabouts - check the small print) and so you will eventually (and sometimes it doesn't take that long) pay more than if you paid a mortgage on 100% from the start (that you can't afford). Just think if you are 25 and get a 25 yr mortgage and let's say you didn't buy any more % you will still be the 75% paying rent from 50+ and this rent won't have devalued over the years like mortgages do.
It could work for a family buying a 3 bed 30-50% share to raise a fmaily with a view to downsizing to a flat in retirement, ie 50 % of the 3bed come mortgage fully paid off time might be able to buy outright a flat...
It could work for a first time buyer that may have an inheritance due at some point that could be then used to purchase outright......
But someone who finds any property unaffordable and this would appear the only logical option then i'd just think carefully about it and do the sums and project forward all the way through to the end of the mortgage term.
A plus point is that depending on the agreement you can purchase the other % at current market value and so there is the possibility of buying cheaper %'s in the future if prices drop, as opposed to buying outright and being exposed to a higher chance of large negative equity.
Maybe rent a place with your mate for a time to see how that goes?
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