Shared Ownership?

[Dan@DB-Power]

Hi Peeps

Me and my fiance are looking into getting our first mortgage/home. Someone sugested a shared ownership plan. Has any of you lot had any experience in this plan or any comments about it would be most appreciated.

Please help.

Dan,:confused: :confused:

[RichardM]

If you are having difficulty in affording open market prices, it's a good way to get your first step on the housing ladder.

You buy a %age (usualy 25 or 50) and pay the "affordable" rent on the remainder of the percentage, that is if the house is worth (say!) £100,000 and the affordable rent is £100 per week and you buy 25% , you have a £25,000 mortgage and also pay £75 per week rent.

While property prices continue to creep up you will of course only make a "profit" on the proportion you buy, so depending on the market in your area, if you can afford an open market property where you would take all the profit, try to do so.

One thing to bear in mind above all else however is that it is your home, some people can look at their home purely as financial proposition, for the majority of us it is our home and we want somewhere nice to live.

My first flat was Shared Ownership, I couldn't afford open market, and I now look at it as one of the best choices i've ever made.

[Dan@DB-Power]

Cheers for the advice rich.

I will consider at buying one in Feb then.

Dan,

[Nick_Walczak]

It's always a good idea to get on the property ladder ASAP so if that's what it takes then that's what it takes.

Nobody knows what house prices are going to do in the near future but they are unlikely to grow as fast as they have been, especially in your location.

[Wak]

I heard a report on the radio last night that the head of a property developer type company who successfully predicted and avoided the last property crash says that prices are about to come down.

Looking at the housing market in my area there are a lot of houses at the top end of the market that are not selling - something has to give.

[Nick_Walczak]

Originally posted by Wak
I heard a report on the radio last night that the head of a property developer type company who successfully predicted and avoided the last property crash says that prices are about to come down.

Looking at the housing market in my area there are a lot of houses at the top end of the market that are not selling - something has to give.
I'd agree. The people who make predictions which get printed - eg. mortgage lenders - always seem to get it wrong. Sort of like the opposite of a self-fulfilling prophecy.

So if this is true, maybe it's not the best time to buy. Maybe I should sell my house and move into rented :eek:

[RichardM]

Of course I should have added that , IF there is a property price crash, in Shared Ownership at least you would only "lose" the decrease on 25% or 50% of the property.

Interest rates are likely to be relatively stable for the next few years (if you're worried look at a capped mortgage take the risk unlikely to go down much, up ? )so even if values do decrease you're very, very unlikely to get caught by the 17% interest rates some of us had to deal with in the mid eighties and the subsequent negative equity situation.

And once again, remember above all, it's your home!

BTW which Housing Association?

[Wak]

Can't remember the name :( but it's one of if not the largest house builder I think, but it's not Barratt.

[Ripper]

Originally posted by Dan S13
...Me and my fiance

Sorry to be pedantic but it's Fiancee.

Wouldn't want you to buy the wrong Christmas Card!

[Dan@DB-Power]

I do apologise for my bad spelling lets try again. Me and my Fiancee'

Dan,